Will Pawlenty turn down $263 million?

"We simply cannot afford to leave $263 million in new federal Medicaid money sitting on the table while other states take their share," said Steve Francisco, federal policy director for the Minnesota Council of Nonprofits' state budget project, which tracks federal spending on social services.

Francisco noted that the bill was paid for by making "other painful cuts" in spending, so that it will not increase the federal deficit. The offsets include closing tax loopholes and a reduction in extra food stamp benefits that had been scheduled to take effect in 2014.