Bobby Jindal refuses Obama’s payout for Louisiana

Washington: Louisiana Governor Bobby Jindal has announced that he will decline stimulus money specifically targeted at expanding state unemployment insurance coverage, becoming the first state executive to officially refuse any part of the federal government’s payout to states.

In a statement, Jindal, who is slated to give the Republican response to President Barack Obama’s message to Congress on Tuesday, expressed concern that expanding unemployment insurance coverage would lead to increased unemployment insurance taxes later on, Politico.com reported.

“The federal money in this bill will run out in less than three years for this benefit and our businesses would then be stuck paying the bill,” Jindal said.

“We must be careful and thoughtful as we examine all the strings attached to the funding in this package. We cannot grow Government in an unsustainable way.”

Jindal is one of a small group of Republican governors, which includes South Carolina’s Mark Sanford and Mississippi’s Haley Barbour, who have said they might refuse some or all of the stimulus money targeted to their states.