WASHINGTON, DC - The U.S. Senate today approved $104.9 million in federal funding to alleviate the state's budget crunch, maintain health care for hundreds of thousands of Rhode Islanders, and save jobs. U.S. Senator Jack Reed (D-RI), who was among the 61 senators voting in favor of final passage, called the bill "essential" to bolstering Rhode Island's economy and preventing local tax increases.

Rhode Island is estimated to receive about $72 million in additional federal Medicaid funding (otherwise known as FMAP) to safeguard the health insurance for over 200,000 individuals and help shore up the state's budget problems.

The state will also receive approximately $32.9 million to help prevent layoffs of educators and first responders in communities across the state.

The bill is paid for with spending cuts and by eliminating tax breaks for U.S. companies that ship jobs overseas.

"This federal aid is critical to Rhode Island and essential to saving jobs and preventing tax increases. It will provide a $100 million boost to Rhode Island's economy through the end of the year and help prevent further layoffs and cuts to essential safety nets. This is a smart investment that will help speed economic recovery, keep individuals and families healthy, and keep more teachers working in the classroom. Indeed, these funds are in addition to the $1.6 billion Rhode Island has been obligated under the Recovery Act -- including $470 million in federal FMAP support for RIte Care, the state's Medicaid system -- to lessen the impacts of the Bush recession," said Reed.

The final vote was 61-39, with Republican Senators Susan Collins and Olympia Snowe joining every Democrat in support of the state aid and jobs package.

House Speaker Nancy Pelosi indicated she will call the U.S. House of Representatives back into session early next week to vote on the measure, which is expected to pass without amendments.

The bill will then be sent to President Obama to be signed into law.