Texas gov. rejects stimulus money for unemployment

Houston_Texas Gov. Rick Perry has rejected $555 million in federal stimulus money that would expand state unemployment benefits.

Perry, an outspoken critic of President Barack Obama's $787 billion stimulus bill, accepted most of the roughly $17 billion slated for Texas in the plan.

But the governor turned down the unemployment benefits on Thursday because he says they would require the state to increase the tax burden on Texas businesses to fund an expanded program.

Monica Rohr, AP Writer © 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.