[lbo-talk] the retrenchment begins

[Chris Maisano]

Does anyone know whether or not this freeze would apply to federal aid to state and local governments, which is scheduled to finish at the end of 2010 under the stimulus package? I can't seem to figure out whether or not this is the case from the few reports I've seen. If the feds don't extend that aid into the next year, the results would be absolutely disastrous. I've seen reports that estimate an additional loss of close to 1 million jobs and a full percentage point of GDP if aid to the states is not extended into 2011: http://www.cbpp.org/cms/index.cfm?fa=view&id=2988