State legislatures cannot overturn a governor's decision to reject federal stimulus funds, Obama administration officials said Monday, increasing the likelihood that South Carolina will not receive the $700 million of stimulus funds refused by Gov. Mark Sanford.

Office of Management and Budget director Peter R. Orszag told U.S. Sen. Lindsey O. Graham, R-S.C., in a March 31 letter that only governors, not state legislators, can apply to the Education Department for an allocation of funds from the State Fiscal Stabilization Fund under the American Recovery and Reinvestment Act that was enacted in February.

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