WASHINGTON — The Senate yesterday voted 61 to 39 to approve a $26 billion measure that would extend but phase out increased federal Medicaid payments to states through June 30 and give $10 billion to local school districts to prevent layoffs.

The measure would increase the Federal Medical Assistance Percentage — federal matching funds for Medicaid — next year by 3.2% for the first quarter and then lower the figure to 1.2% for the second quarter.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.