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Palin Rejects Federal Stimulus Funds In Alaska

Kelly Phillips ErbMarch 22, 2009May 14, 2020

Following in the footsteps of a handful of other governors, Alaska Gov. Sarah Palin has indicated that she will take only 55% of the federal economic stimulus money being offered to Alaska. If that sounds like fiscal responsibility, don’t get too excited. Per capita, Alaska already receives more federal funding than any other state in the country, an honor held since 1999.

Included in the rejected funds are $160 million for education (including money for special ed services); $17 million in Department of Labor funds (vocational rehabilitation services, unemployment services, etc.); $9 million for Health and Social Services and about $7 million for Public Safety.

Critics held a protest yesterday to oppose rejection of the funds which Palin announced on Thursday. However, Palin’s budget director, Karen Rehfeld, seemed to contradict the governor, saying that the administration hasn’t yet rejected a single dollar of the stimulus funding.

The governors of Idaho, Louisiana, Mississippi, South Carolina, and Texas have also signaled that they will pass on stimulus money.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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Alaska, Louisiana, Sarah Palin, south carolina, Texas

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One thought on “Palin Rejects Federal Stimulus Funds In Alaska”

  1. garagefather says:
    March 23, 2009 at 1:10 pm

    What these governors don’t know is that when the time comes for the state to shell out their own money to support these mandated changes down the road that they will be begging Obama to bail them out again and prevent all this new government from having to be paid by the state even though that is the agreement.
    Governors in all the states that can’t wait to get all this money, never plan to fulfill their end of the deal. Mark my words.
    The governors that reject the money will ultimately regret giving up the money because they will see all the beggars on their knees getting bailed out again when their unemployment and their welfare systems budgets explode. The dem pres won’t hold the dem governors accountable and force them to live up to their obligations.
    I commend those that reject money based on the burden that the state will have to bear in the future. I commend politicians that actually care what their children and grandchildren will be left with in the future. I CONDEMN all those that are currently financially enslaving our children and grandchildren so that current citizens can get a free ride.

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