Palin to reject almost half of stimulus money

WASHINGTON (CNN) - Alaska Gov. Sarah Palin will reject almost half of the federal stimulus money available to her state, her office said Thursday.

"We will request federal stimulus funds for capital projects that will create new jobs and expand the economy," Palin said in a statement. "We won't be bound by federal strings in exchange for dollars, nor will we dig ourselves a deeper hole in two years when these federal funds are gone."

Palin said she will accept 55 percent of the federal bailout money and designate it to capital projects that she said are "job-ready." That breaks down to 514.1 million of the $930.7 million that was allocated to her state by the federal government.

Palin requested $262.6 million for transportation and aviation projects and the rest for water and sewage, public housing, a University of Alaska Fairbanks research vessel and other projects.

"We need to ensure that these stimulus dollars are used for job opportunities for Alaskans, while preserving the regular operating spending decisions through the normal budget process," Palin said in a statement.