GAO: Medicaid money, other stimulus funding not being used properly

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So far, states have received roughly $29 billion in stimulus funds, more than 90% of which is supposed to go to Medicaid and a fund for education, public safety and other services. But according to a new report, much of that money isn't going to the intended recipients.

Short-term projects and budget gaps have been siphoning off much of the intended Medicaid dollars, according to a report released Tuesday by the Government Accountability Office. Transportation and education projects, too, have seen their funds redirected and used instead to prevent layoffs. One reason for the redirection of money could be the timeline laid out in the stimulus package, suggests the GAO. States were required to choose very quickly which programs would receive the funds, and some deserving programs may have been overlooked. Nursing homes were expecting to receive some funding.

While some conservative legislators have used the news and concurrent rising unemployment figures to argue that the stimulus package isn't working, some on the other side of the aisle have gone so far as to suggest another stimulus package, USA Today reported.