Gov. Sarah Palin announced Thursday she is vetoing the Alaska Legislature's decision to accept $28.6 million in federal economic stimulus money for energy relief.

Palin also vetoed nearly $12 million from the state budget for construction projects. The biggest project she targeted was the improvement of the Anchorage courthouse. She also cut Southeast Alaska projects funded with cruise ship tax money.

State legislators and U.S. Sen. Mark Begich, D-Alaska, immediately criticized Palin for turning down the federal stimulus money. The money could have been used for weatherization and renewable energy projects.

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