Lisa Lambert — Federal funding in limbo, U.S. states weigh paying for programs

As the battle in Congress over the U.S. budget grinds on, states say they may soon have to choose between putting their own dollars into federal programs for residents or letting vitally important services such as food stamps lapse.

"States have thus far managed to avoid closing or suspending most programs and services by using carry-over funds or, in some cases, by using state spending to fill in for missing federal dollars," the bipartisan National Governors Association said in a letter sent to congressional leaders on Thursday. "However, states are not in a position to be the bank for the federal government,"

The letter, which was copied to President Barack Obama, asked for reimbursements for expenses that states might incur while funding for federal programs is in limbo. This included paying for personnel whose salaries are supported, at least in part, by federal grants.

Reuters
Federal funding in limbo, U.S. states weigh paying for programs
Lisa Lambert