Financial Times FT.com

US recovery scheme slowed by state fears

By Sheila McNulty in Houston

Published: June 21 2009 20:16 | Last updated: June 21 2009 20:16

Some US states have been reluctant to take all the federal stimulus funds available to them, fearing they will get mired in red tape or create jobs they have no way of funding in the future.

This hesitancy, along with bureaucratic disbursement policies, is limiting the impact of the billions in Recovery Act funding designated for states and localities, according to analysts.

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