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 U.S. Rep. Michele Bachmann had some choice words for a recently passed $26 billion bill meant to aid states hit hard by the economic downturn.

"Taxpayer money will essentially be laundered through the public employee unions, and spent to reelect those same Democrats this fall," Bachmann said on the Aug. 10 episode of FOX News's Freedom Watch with Judge Napolitano.

The next day, she clarified her point on another FOX News program, saying, "Quite literally what will happen is this money will be shifted over to public employee unions. The unions will skim off the top; they'll put a good portion of that into political action committees."

Bachmann's claim underscores an opinion held by other Republicans that the legislation is meant to win favor with teachers and other workers during an election year. Some have argued that, because the funding will be used to maintain worker salaries, a portion of that money could end up with unions in the form of dues.

Bachmann's claim implies that state aid will literally be used to pad Democrats' campaign-funding chests. But that's not true. The money will go to states, not unions.

The bill includes rules on how the money will be administered and what it can be used for.

The legislation includes $10 billion to prevent teacher layoffs and about $16 billion to help states maintain expanded Medicaid coverage that was established by the federal stimulus bill.

Bachmann is vague on which "public employee unions" she's talking about, and her office did not respond to inquiries for clarification. But it appears she's referring to teachers' unions. (The Medicaid component of the bill doesn't change how the federal government matches state funding for the program.)

The $10 billion in education funding will be administered by the Department of Education. It will allocate funding to states based total population and school age population. Then, states will distribute funds to schools based on formulas. The Minnesota Department of Education has not decided how it will allocate the funds, but it's important to note that the decision will be left up to state officials, not teachers' unions.

Furthermore, the bill expressly states that the education funding must "be used only for awards to local educational agencies for the support of elementary and secondary education... for the 2010-2011 school year." The legislation also states that the money can be used only to pay school employees who would otherwise be laid-off or to rehire employees. Moreover, the funding cannot be used to pay-off state debt or for "rainy-day" funds.

Bachmann is wrong to say that the state aid will be "laundered" through public employee unions and used to help reelect Democrats. In fact, the bill is clear that the money can only be used to keep teachers on the payroll.

Her claim does not pass the PoliGraph test.

Rep. Michele Bachmann on Freedom Watch with Judge Napolitano

The Education Jobs and Medicaid Assistance Act

American Recovery and Reinvestment Act (ARRA): Medicaid and Health Care Provisions

Title I -- Improving The Academic Achievement Of The Disadvantaged

Bachmann and Angle agree: State aid is "laundered" money for Dems

Interview, Christine Dufour, spokeswoman, Minnesota Department of Education, Aug. 16, 2010

Interview, Lonnie Hartley, spokesman, Education Minnesota, Aug. 16, 2010

University of Minnesota Humphrey Institute

Hear Poligraph reporter Catharine Richert's conversation with Tom Crann on MPR's All Things Considered:

Politics and Government News

Capitol View®

Catharine Richert

Author

Bachmann's claim on laundering funds to public employee unions is a stretch.

PoliGraph: Bachmann state aid claim fails the truth test

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