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<home> -- <press releases> -- <May 23, 2003>

Senate Agrees to Provide Medicaid Relief and Federal Financial Assistance to the States and Territories:
Medicaid Cap to Increase by 5.9% and
$6 million in New Funds Added for Fiscal Relief

FOR IMMEDIATE RELEASE – May 23, 2003 – Washington, D.C. – The United States Senate today passed an amendment to S. 1054, the Jobs and Growth Tax Relief Reconciliation Act of 2003, that would provide for a 5.9 percent increase in the Medicaid cap for Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, American Samoa, and the Virgin Islands. The amendment, offered by Senator Susan Collins (R-ME), along with eight of her colleagues, also includes $10 billion to help the States and territories provide for government services in a time of declining revenues and a struggling economy. The amendment was offered as a compromise to Senate Democrats who had insisted on fiscal relief assistance for the States and territories as part of the President’s tax package. The amendment passed 95 to 3.

“I thank Senator Collins and the Senate leadership for including us in the amendment and for recognizing the financial burden placed on Guam under Medicaid with a spending cap,” said Congresswoman Bordallo. “We had worked this issue vigorously to ensure that the needs of the territories were included in any fiscal relief package. The House Delegates had contacted key Senators on this issue. We are grateful to know that we were not overlooked and that our issues are taken seriously.”

The amendment will increase funding for Medicaid for Guam by approximately $360,000, raising the spending cap to roughly $6.5 million. It would also provide no less than $6 million for Guam to help fund essential government services and grants flexibility in using these funds for education, job training, health care, transportation, law enforcement or other such public needs.

“This federal assistance comes at a time of great need and I will work with my colleagues from the other territories to ensure this amendment is included in conference in the final bill presented to the President,” remarked Congresswoman Bordallo.

The conference committee is expected to begin meeting immediately to work out a settlement on S. 1054 and H.R. 2, the legislation that would implement the President’s tax relief initiatives. The conference report will likely reach the House and Senate floors for approval by the end of next week. If approved, the bill will be brought to President Bush for final approval.

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Contact: Neil Weare in Washington, D.C., at (202) 225-1188 or Joaquin Perez in Guam at (671) 477-4272.

 
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