Special Analysis 08-01 Existing Grants Offer Quick, Effective Stimulus Options December 15, 2008
With each passing day, a growing number of alternatives are being offered as economic stimulus proposals. The conventional wisdom is that such a program will include components targeted to both individuals and states.
For individuals, programs such as unemployment insurance and the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps), are frequently mentioned. For states, infrastructure investment—especially for “ready-to-go” projects—and support for Medicaid and other grant programs through an increase in the federal medical assistance percentage (FMAP) are the most commonly cited strategies. To date, however, little information has been offered as to how such a stimulus package might be structured and what it might offer to individual states. Moreover, recent “project creep” has raised the specter of new and different forms of federal aid for states in areas such as emerging technologies, energy grids, conservation and the like.
