The Virginia House rejected $125 million in federal stimulus funds to be used to expand unemployment benefits to part-time workers and those in job training programs. As mentioned earlier this week, concerns were raised that by accepting the funds, the state is also accepting a higher level of future spending on unemployment benefits — something it will have to pay for via
increased taxes on business once stimulus funds disappear.
Virginia joins South Carolina, Texas, Louisiana, and Alaska in expressing reservations about the strings attached to stimulus funding, a debate led by South Carolina Governor Mark Sanford, who on April 3 became the last governor to accept funds — after his formal rejection of the funds was denied by the Administration.
Addendum: Fixed typo in header — apologies for the oversight.