Senate votes to end debate on $26 billion aid to states bill

The Senate voted 61-38 Wednesday morning to end debate on a bill that would provide $26 billion in aid to states. 

Backed by the two Republican senators from Maine — Susan Collins and Olympia Snowe — the measure got the votes it needed to move forward as the Senate prepares to wrap up work before the August recess. 

The measure aims to help state governments cover Medicaid expenses and prevent layoffs of teachers and first responders would reduce the budget deficit by $1.4 billion over the next 10 years, according to a new report by the Congressional Budget Office.

Senate Budget ranking member Judd Gregg (R-N.H.) raised a budget point of order against the measure saying it would increase the deficit by $22 billion next year.

Senate Majority Leader Harry Reid (D-Nev.) argued the bill is fully paid for and doesn't increase the deficit. The Senate voted to waive the point of order.

The bill would provide $16 billion in Medicaid funding to states and $10 billion for teachers and first responders.

The measure is paid for by closing corporate tax loopholes that allow U.S.-based multinational companies to use foreign tax credits to reduce their U.S. taxes. The measure also rescinds about previously appropriated money and cuts future food stamp benefits.