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Congress pulls back state aid package, leaving a $2-billion hole in California budget

Jun 3, 2010 3:00:00 AM - latimes.com
House Democrats kill a $24-billion fund to help cash-strapped states cover costs. States are lobbying hard to have it restored, warning of further devastating cuts to healthcare and social services.

With the federal deficit a growing political liability, lawmakers in Congress are backing off plans to send more aid to financially strapped states, putting in jeopardy billions of dollars that California and others were counting on to balance their budgets.

USA, California: (Latest Stories)