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Economic Recovery Will Help Millions of Struggling Americans and Ease States' Financial Strain

February 20, 2009 - Posted by Antoine Morris

The recently enacted economic recovery plan will provide some much needed relief to millions of Americans who are struggling to make ends meet during the recession, particularly unemployed people. 

The plan extends unemployment benefits up to an additional 33 weeks for workers who have exhausted their regular unemployment benefits, and increases weekly unemployment checks by $25 through the end of 2009. In addition, food stamp benefits will be increased by 13.6% starting in April.

Economists say increasing funding for both unemployment benefits and food stamps will have an immediate stimulative effect on the economy since those receiving the aid will likely spend it quickly. 

In addition, 46 states are facing huge budget deficits over the next three years and have been struggling to continue providing welfare and health care assistance to low-income and unemployed people.  Under the plan, states will get nearly $5 billion so they can continue to help low-income families through the federal welfare assistance program, Temporary Assistance to Needy Families. Currently, about 4 million people receive assistance through the program. Another $87 billion will go to states to help them continue to provide health care assistance through Medicaid.  

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