WASHINGTON DC – As the 111th Congress convenes, the National Conference of State Legislatures is urging federal lawmakers to consider an economic stimulus package that will help out the states directly and indirectly, including working on new regulations for the financial and housing industries.

Congressional leaders have signaled that a new economic stimulus package will not be completed by the time President-elect Barack Obama is inaugurated January 20, but there is a push in Washington to act quickly in order to address the national recession.

NCSL continues to ask that states receive aid as part of any stimulus, including reducing the share of Medicaid funding the states pay, providing direct grants to the states, increasing food stamp assistance and extending unemployment benefits. The group has also called for investing in transportation infrastructure, particularly highways, mass transit and water treatment facilities, which it argues not only addresses the country’s infrastructure needs but also will create jobs.

But NCSL argues the situation the nation finds itself in, with the credit crunch and housing crisis, also calls for altering how the financial and housing industries are regulated.

The group said it will work with Obama and Congress to address the current regulatory structure and what role the state legislatures and agencies play in that oversight.

“State legislators can tailor solutions to public policy challenges that fit the unique conditions and cultures of each state,” said NCSL Executive Director William Pound. “The last thing we need right now is for Congress and the next administration to usurp the ways in which states govern their citizens. States will work hand-in-hand with Congress and the Obama administration on solutions to the problems plaguing all Americans.”

Obama has been meeting with congressional leaders this week to talk about his proposed stimulus package, which is expected to cost $775 billion. The package will include funding for infrastructure projects and assistance to states so they can extend and include more workers in unemployment benefits, as well as provide more health care coverage to people.

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