WASHINGTON — South Carolina Gov. Mark Sanford on Friday rejected $700 million of the $2.8 billion of federal stimulus funds the state was to receive after Obama administration officials said he could not use the money to pay off state education bonds and other debt.

Sanford said he would not accept the $700 million from the stimulus law’s State Fiscal Stabilization Fund because the Obama administration rejected his request to use $577 million of that amount to pay off $579 million of education general obligation bonds, he said in a press release.

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