Sanford Rejects $700 Million In Stimulus Funds

AP | Jim Davenport

South Carolina Gov. Mark Sanford says he won't spend $700 million in federal stimulus cash.

Sanford's announcement Friday came soon after the White House rejected the Republican governor's second bid to use the money to pay down debt.South Carolina Gov. Mark Sanford says he won't spend $700 million in federal stimulus cash.

Sanford's announcement Friday came soon after the White House rejected the Republican governor's second bid to use the money to pay down debt.

Alaska Gov. Sarah Palin and Texas Gov. Rick Perry also have turned down stimulus cash.

Sanford said the federal money would create "an unconscionable level of debt." He has said federal bailouts will lead to high national debt.

While Sanford has railed against the stimulus money, the state's mayors have implored him to take it. State lawmakers already have plans to use the cash.

In all, $2.8 billion in federal money is headed to South Carolina, which had the nation's second-highest unemployment rate in January.