US expects €60bn for states' schools

President-elect Barack Obama's proposed stimulus plan is expected to include about €60 billion of school grants for states, said US Senator Charles Schumer.

Mr Schumer said states should get about one-third of the €600 billion total the US government will spend to rescue the economy from a painful recession.

The state aid will include extra funds for Medicaid, the state-federal health-care programme for the poor, and New York should get at least €3.7 billion of that aid, Schumer said.

"(If) the states are taking money out of the economy, either by raising taxes or laying off people, then the government is giving with one hand and taking with another," said Mr Schumer.

David Paterson is one of five governors leading the charge to include education dollars in the national plan.

This could create around 300,000 jobs, assuming that €751 million of spending prompts employers to hire 33,000 workers, remarked Mr Paterson.