Washington, Aug 11 (IANS): US President Barack Obama Tuesday signed a 26-billion-dollar bill to help states prevent teacher layoffs and make their medicaid payments, hours after the House of Representatives passed it.

By a vote of 247 to 161, the House Tuesday afternoon gave the bill a green light, designed to ease the tight state budget amid a sharp decline in tax revenues during the worst recession since the 1930s, Xinhua reported. Last week, the Senate voted 61 to 39 to approve the measure.

Representatives were called back by House Speaker Nancy Pelosi from their summer recess to pass the bill, in an attempt to act swiftly to prevent teacher layoffs before schools reopen.

The US president made a last-minute pitch for the bill hours before the House took the final vote.

"We can't stand by and do nothing while pink slips are given to the men and women who educate our children or keep our communities safe," said Obama, surrounded by teachers in the White House Rose Garden.

The bill includes $10 billion allocated to school districts to help states avoid layoffs of teachers. The White House estimated that would save about 160,000 teachers' jobs. In the year ended June 30, more than 85,000 local-government education employees lost their jobs.

The bill also contains $16 billion in additional funding to help states make their medicaid payments.