Mayor Michael R. Bloomberg and U.S. Senator Charles E. Schumer today announced that the new jobs bill being considered by the U.S. Senate - The American Workers, State, and Business Relief Act - contains approximately $500 million in Medicaid expense relief for New York City. The legislation would extend the Medicaid expense relief provided by the American Recovery and Reinvestment Act, which reduced the City's share of Medicaid expenses. The additional savings for the City would be realized in Fiscal Year 2011.

"During these tough economic times, we are extremely fortunate to be represented in Washington by one of Congress's most senior and effective members - and once again, Senator Schumer is delivering for New Yorkers," said Mayor Bloomberg. "Relieving the City of expected Medicaid costs will free up dollars for schools, public safety, parks - you name it. It's not going to solve all of our problems or eliminate the tough budget decisions we still have to make, but the needed relief is going to help us avoid some of the most drastic options. I also would like to thank the City's entire Congressional Delegation for its work in including this important provision in the jobs bill that passed the House in December."

"This money will be a tremendous shot in the arm for the State and City budgets and help stave off layoffs, and keep cops, firefighters and teachers on the job," said Senator Schumer. "This funding will help alleviate, it will not eliminate, the tough choices facing the State and City during these difficult times."

New York is one of the only states in the country that requires cities and localities to pay a large portion of Medicaid costs. Even with the City's Medicaid contribution reduced due to the relief provided in the American Recovery and Reinvestment Act, the City is expected to spend approximately $5 billion on mandated Medicaid expenses this fiscal year.

Although not as much as the $2.1 billion that the City originally projected, the City has received a total of nearly $1.6 billion in Medicaid expense relief, spread over City Fiscal Years 2009-2011, as a result of the American Recovery and Reinvestment Act.