States Ignoring Stimulus Welfare Fund

[marmar]

via Truthdig:



States Ignoring Stimulus Welfare Fund

Posted on Sep 8, 2009
By Michael Grabell, Christopher Flavelle and Emily Witt, ProPublica


Word of the money spread quickly.

New York state had put hundreds of dollars in federal stimulus money into food stamp accounts, and if it wasn’t withdrawn by 4 p.m., 9 p.m., midnight—depending on the version of the rumor—it would disappear. So on a sultry August day, lines stretched at ATMs all over the state, a literal run on the bank.

The surprise cash—which was real, even though the deadlines weren’t—came from a little-known stimulus fund that economists say would directly help people hurt by the recession and be extremely effective at stimulating the economy.

The $5 billion emergency fund for needy families can be used to immediately create jobs for the unemployed, pay rent for families facing eviction, even repair someone’s car so they can get to work.

But many states aren’t taking advantage of the windfall because state officials say they can’t afford the requirement that they put up 20 percent of the costs. Six months into the stimulus, only 27 states have applied for the money. ...........(more)

The complete piece is at: http://www.truthdig.com/report/item/20090908_states_ignoring_stimulus_welfare_fund/