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States brace for new safety net money

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Aid for the poor is a top priority in the Obama administration’s economic stimulus proposal — in part because research shows that putting cash in the pockets of low-income families is one of the best ways to jumpstart the economy.

Not including an estimated $87 billion hike in Medicaid — federal-state health insurance for the poor — and billions more in low-income tax breaks, the just approved $789 billion economic stimulus package includes as much as $64 billion for the major safety net programs: Food Stamps, unemployment insurance, welfare, child care subsidies, home energy assistance and community service grants.

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