Kansas has rejected federal grant money that was sent to the state as part of President Barack Obama's healthcare overhaul.
Reuters reported Republican Gov. Sam Brownback ordered the return of $31.5 million in federal funds.
Kansas is the second state to snub the grant. Oklahoma returned nearly $55 million this past spring.
The money was supposed to be used to create a prototype of a health insurance exchange that other states could copy.
"Every state should be preparing for fewer federal resources, not more," Brownback said.
"That requires freeing Kansas from the strings attached to the early innovator grant," he added.