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Subsidized work program on the line

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American Recovery and Reinvestment Act website

WASHINGTON, July 29 (UPI) -- A subsidized work program set up for unemployed and disadvantaged U.S. workers is on track to put 247,000 people to work by September, a research group said.

The Center on Budget and Policy Priorities said the program that provides workers to private businesses for free, paid for by state agencies using federal stimulus money, generally put workers in jobs paying $8 to $15 per hour, The New York Times reported Thursday.

The program has spent about $1 billion of an allocated $5 billion from the $787 billion American Recovery and Reinvestment Act. It is up for a House vote this week to decide whether or not it should continue for another year.

It is a difficult program to assess, however, as it is possible that some employers may have laid off workers on private payrolls and back-filled with free workers.

The program is restricted to workers in low-income households who have young children or are under 21-years of age.

"We have been saying to small businesses, 'This, finally, is the bailout program designed for you,' " the Times quoted James Whelly at the San Francisco Human Services Agency as saying.

On the flip side, "There's always a concern that the employer or somebody else who hires them would have simply hired someone else," said University of California economist David Card.

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