States Tap Stimulus Aid; Holdouts Remain

Even as the U.S. Department of Education announced the first states approved to tap federal aid under a $48.5 billion economic-stimulus fund designed to help them deal with budget cuts, questions remained last week about whether the governors of at least two states would try to claim their share.

Gov. Mark Sanford of South Carolina, a sharp and vocal critic of the $787 billion federal economic-stimulus law, has said he would forgo some $700 million in federal aid from the state fiscal-stabilization fund mostly designated for education, unless he could use it to pay down state debt, a request the White House has rejected.

The stance of the GOP governor, who is thought to be mulling a run for the White House in 2012, has infuriated not only Democrats in his state but some...

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