Factbox: Reactions to passage of state aid bill

(Reuters) - The U.S. House of Representatives on Tuesday approved a measure to send $26 billion to states while closing international tax loopholes and cutting some food stamps funds provided in the economic stimulus plan passed last year. The bill would increase the reimbursements states receive for Medicaid, the healthcare program for the poor that falls under the Federal Medical Assistance Program, and send $10 billion to schools for education jobs.

Below are Congressional, local, state, and business leaders' reaction to the legislation, which President Barack Obama signed into law late on Tuesday:

House of Representatives Ways and Means Committee Chairman Sander Levin, a Democrat

"The minority (the Republican party) comes here talking about their unemployed constituents, having voted against continuing unemployment compensation for those out of work and looking for it. The minority comes here talking about help for small business, having voted against Democratic bills to help small business. And today, once again, they vote against the American worker. In this bill we close tax loopholes, used by some companies to escape taxes and to ship jobs overseas. Closing this loophole is fair taxation and it is what the people of this country demand."

Senate Republican Leader Mitch McConnell

"The trillion-dollar stimulus bill was supposed to be timely, targeted and temporary. Yet here we are, a year and a half later into the Democrat economy, and some in Washington are already coming back for tens of billions more. It's time to change course, it's time to do something that will actually create lasting private sector jobs and get us moving in the right direction. And with a record $13.3 trillion national debt, Washington needs to start listening to the concerns of the American people rather than trying to force them to go along with more spending and more debt and more job-killing taxes and regulations on small businesses."

Elizabeth Kautz, mayor of Burnsville, Minnesota, and president of the U.S. Conference of Mayors

"This money will save jobs, and is an important first step in strengthening our nation's economy. ... Immediate action on our priorities will strengthen the metro economies that drive our nation and help prevent our country from entering a second recession."

Minnesota Governor Tim Pawlenty, a Republican

"The federal government should not deficit spend to bail out states and special interest groups. Minnesota balanced its budget without raising taxes and without relying on more federal money. The federal government's reckless spending spree must come to an end."

Michigan Governor Jennifer Granholm, a Democrat

"For Michigan, this legislation means more than $300 million to hire or rehire teachers. These funds will help our children receive the education they need to compete in a global economy. The legislation also will ensure that people have access to health care, such as those with mental illness or who require prescription drugs."

Dennis Van Roekel, president of the National Education Association

"With this vote, the House reaffirmed that the road to economic security and prosperity runs directly through our nation's schools. As a result, we expect to see fewer crowded classrooms, reinstated bus routes and fewer cuts to education programs and services....Fiscal relief to struggling school districts and students should remain a top priority during these tough economic times."

David Sloane, senior vice president of retiree group AARP

"Without this extension of funding, many states would likely increase cuts to programs such as home and community-based services, which help older Americans and people with disabilities receive the services they need without going to nursing homes and other more costly care settings...

"At the same time, we must note our disappointment that this bill takes significant funding from the Supplemental Nutrition Assistance Program (also known as food stamps), which helps put food on the table for millions of poor and low-income Americans. We urge Congress to help ensure that fewer Americans go hungry by restoring SNAP funding cuts before they are scheduled to go into effect."

Johanna Schneider, executive director of external relations of Business Roundtable.

"The vote in the House today approving nearly $10 billion in new taxes on American companies with overseas operations is a counterproductive move that will only hurt future U.S. economic growth and job creation... With today's vote, Congress has now added to the growing disparity between the tax policies of the United States and most other major world economies.

"Business Roundtable urges an immediate and broader, bipartisan conversation on comprehensive corporate tax reform that will enhance the competitiveness of American companies and workers."

Richard Trumka, president of AFL-CIO

"Today's vote means that hundreds of thousands of teachers, firefighters and public safety officers will keep their jobs....Simply put, this vote keeps us on the path to economic recovery. With today's vote, House Republicans showed they value Wall Street and tax cuts for the rich over teachers, police and firefighters. This is yet another example in the laundry list of anti-jobs votes they've taken....This bill reduces the deficit by closing tax loopholes that reward companies for sending American jobs overseas. So not only did these Republicans vote against saving jobs in America -- they voted to keep encouraging corporations to outsource jobs during this recession."

Randi Weingarten, president of the American Federation of Teachers

"Today's House vote and last week's Senate vote are the ultimate indication of who's for kids and who isn't....While it's too late to restore summer school, the funding will arrive just in time to help reinstate laid-off educators, reverse cuts to Advanced Placement and other classes, reopen school libraries, and end furloughs. It is now imperative that states and school districts use the money as the bill intends, so that it's spent wisely and where it's needed most."

Chip Kahn, president and CEO of the Federation of American Hospitals:

"Today's House vote extend enhanced FMAP payments is a long-overdue victory for millions of American families who depend upon Medicaid to meet their healthcare needs. This vital funding will strengthen the ability of hospitals, doctors, and other healthcare providers to meet their commitment to care for the most vulnerable members of their communities."

Washington Governor Chris Gregoire

"I applaud the House's bipartisan action today to support FMAP and federal education funding. This funding is critical for services that are the safety net for our most needy.

"Here in Washington, we've already had to make $5.1 billion in cuts to the state budget. Without this aid, we would have been forced to make further draconian cuts that would have put our economic recovery in jeopardy while eliminating services like medical care for children and low-income families."

Wisconsin Governor Jim Doyle

"The education jobs funds that the House passed today are essential to reinstating laid-off teachers and hiring more teachers to fill critical openings in our schools before the new school year....The House also passed Medicaid funding that will help alleviate severe stress on our balanced state budget as a result of increased demand in Medicaid. Without this funding Wisconsin would have faced significant job losses in the private health care industry."

Missouri Governor Jay Nixon

"I am appreciative that Congress and the White House recognize that the states are facing ongoing fiscal challenges to provide essential services. While not a solution to all those challenges, the federal funding we will receive through this bill will allow us to continue moving forward with the economic recovery already under way....

"In the coming weeks and months, we will work with legislative and education leaders to discuss how this extension of stabilization funding can help us continue on the road of long-term economic recovery and growth."

(Compiled by Lisa Lambert and Kim Dixon in Washington, Karen Pierog in Chicago; Editing by Leslie Adler)