NASHVILLE — The U.S. House on Friday dealt a major setback to Tennessee lawmakers who hoped to obtain additional stimulus dollars through the extension of enhanced federal matching dollars for Medicaid.
Congressional Republicans and conservative Democrats demanded the provision, which would have provided Tennessee $341 million in additional funds, be removed from a larger bill because of its impact on the federal deficit.
The U.S. Senate is expected to consider the plan sometime in June.
In Tennessee, the General Assembly is still struggling to finish work on the state’s $28 billion 2010-11 budget.
A plan offered by Senate Republicans, who have a 19-14 majority, and another one developed by House and Senate Democrats, independent House Speaker Kent Williams and some House Republicans have provisions that would be funded if Congress eventually approves the enhanced Medicaid matching funds.