Virginia House Rejects $125M in Stimulus Cash

Virginia's Republican-run House of Delegates rejected a proposed expansion of unemployment benefits Wednesday, along with $125 million in federal stimulus cash to pay for it.

On a mostly party-line 46-53 vote, the House turned down amendments by Democratic Gov. Timothy M. Kaine that were necessary to make Virginia eligible for the federal aid.

The vote mirrored a debate raging in state capitols across the nation over whether to accept the federal stimulus cash to cushion soaring unemployment rates in the worst economy since the Great Depression.

Republican governors in several states, including Mississippi, Louisiana, South Carolina, Alaska and Texas, say they will reject at least part of the cash because of mandates by a Democratic Congress and President Barack Obama to broaden state unemployment insurance programs.

Wednesday's vote makes Virginia among the first states to definitively repudiate the unemployment insurance expansion.


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This Pseudo-stimulus isn't about stimulating anything. It is about the Fed effecting permanent change on the state level. And States are not buying it.