Obama: Can’t Use the Money to Pay Down Debt

There has been an ongoing feud between Governor Mark Sanford of South Carolina and the Obama Administration on how to use the “stimulus” funds. While Gov. Sanford wants to use part of the stimulus funds that his state will receive to pay down debt, the White House Budget Director Peter Orszag said in a statement that the funds must be used to create jobs.

Here is part of the transcript:

The AP reports that the Obama administration today rejected South Carolina Gov. Mark Sanford’s (R) request to use his state’s $700 million in stimulus money to retire debt. “White House Budget Director Peter Orszag said in a letter to the Republican … that the federal stimulus law doesn’t allow President Barack Obama to make an exception for that cash. Sanford sought a waiver last week, asking to pay off debt rather than use the money to create jobs and avoid deep program cuts.”

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