U.S. cuts Medicaid, funds digital TV

WASHINGTON, Nov. 13 (UPI) -- Congress is set to spend as much as $3 billion to subsidize digital television converter boxes before broadcasting goes all digital before the end of 2008.

Conservative groups have criticized the proposed expenditure as a giveaway, but the provision has received less attention because it is included in deficit-reduction legislation that has generated an uproar in the House for its spending reductions in programs affecting the poor, such as Medicaid and food stamps, the Chicago Tribune reported.

After the digital switch is complete, old analog televisions will not be able to play the broadcasts.

Robert Bixby, executive director of the Concord Coalition, a budget-watchdog group, said that helping poor people buy converter boxes appears justified, but still had doubts.

"When the government subsidizes anything, it usually goes to people who don't need it. I suspect that will be the case here," he said.

Depending on how much money is allocated, the funding would go to purchase as many as 60 million electronic boxes at a cost between $40 and $60, with a $10 co-pay, the report said.