State Aid. This proposed amendment to the Senate version of the tax reductions bill (S. 1054) would provide $40 billion in aid to states. Half of this would be for general revenue sharing with states and their local governments. The other half would be used to increase federal Medicaid assistance to states for the last two quarters of fiscal 2003 and all of fiscal 2004.
A point of order was raised against this amendment on the basis of Budget Act restrictions. The Senate failed to waive the Budget Act with respect to the amendment on May 15, 2003 by a vote of 47 to 52 (Roll Call 158). A three-fifths majority vote (60) of the total Senate is needed to waive the Budget Act. We have assigned pluses to the nays because federal aid to the states for revenue sharing and medical assistance is unconstitutional.
