Maximize the Use of Federal Funds
Independent of federal stimulus efforts, a number of opportunities exist for states to enhance the use of federal funds.
What Can Policymakers Do?
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Supplemental Nutrition Assistance Program
(SNAP, formerly Food Stamp Program) give states a powerful opportunity to provide immediate, local economic stimulus, as well as food assistance for improved nutrition and health of low income families.
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Employment and Training Program (FSET)
states that access these uncapped matching funds can leverage significant federal dollars to provide expanded job training and related supports to those at the lowest end of the income scale.
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SCHIP and Medicaid
states can ensure maximum participation of eligible children and families in Medicaid and the State Children’s Health Insurance Program (SCHIP).
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Federal Tax Credits
The Earned Income Tax Credit (EITC) is the largest federal anti-poverty program.
The EITC has been found to help families pay everyday bills, to reduce poverty, to encourage work among single parents, to boost spending, and to increase local economic activity. EITC-induced work continues to pay off over time through increases in earnings.
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Child Welfare
a new federal law provides a number of new funding opportunities for states.