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RICHMOND -- Republican legislative leaders on Thursday defended their decision to reject $125 million in enhanced federal unemployment benefits -- and they lashed back at Democrats who have accused the GOP of abandoning jobless Virginians.

"I think it's disingenuous to go around and say Republicans have turned their back on the unemployed when, in fact, we are doing everything possible to help those people," said House Speaker Bill Howell, R-Stafford County.

But Democrats show no signs of letting up on the issue as they gear up for elections to statewide offices and all 100 seats in the House of Delegates.

"All of the excuses and all of the press conferences in the world aren't going to change anything," said House Minority Leader Ward Armstrong, D-Henry County, who accused Republicans of partisan motives for rejecting the unemployment benefits.

Gov. Tim Kaine and Democratic lawmakers have hammered Republicans for the past two weeks for their refusal to expand the state's eligibility criteria for unemployment benefits. Kaine proposed an expansion to qualify the state for $125 million in federal funds from the economic recovery package that Congress passed in February.

Voting largely along party lines, the Republican-controlled House defeated Kaine's proposal during the General Assembly's April 8 veto session. Kaine denounced the action and said lawmakers effectively told jobless workers, "We don't care."

The governor's proposal would have made unemployment benefits available for workers laid off from part-time jobs and seeking part-time work, and would have extended benefits for workers who lost jobs in declining industries and who have enrolled in retraining programs.

Republicans argued that the expansion would increase taxes on Virginia businesses and make job creation more difficult. In a news conference with a group of small-business owners, Howell said the controversy over the $125 million in federal funds has overshadowed other steps lawmakers took this month to help the unemployed.

Howell noted that Republicans backed a 13-week extension of benefits for workers who meet the existing unemployment insurance criteria. The extension, paid for by federal stimulus funds, comes on top of the traditional 26 weeks of coverage and a 20-month extension lawmakers approved earlier this year. They also approved an extension of health insurance coverage for workers laid off from small businesses, a benefit paid for by federal stimulus funds. Both measures passed unanimously.

Business groups objected to Kaine's plan to expand eligibility for unemployment benefits, arguing that employers would have to shoulder the costs when the federal funds expire.

"It's very seductive and it's lovely for headlines, but once it's gone, the cost is going to be borne by the businesses and there's no reason for us to continue to do that," said John Nicholson, who owns a Northern Virginia flower shop.

The annual unemployment tax on Virginia employers, now about $95 per worker, eventually would increase by about $4.56 under Kaine's proposal.

Virginia businesses already face the prospect of significant tax increases to keep the state's unemployment trust fund solvent. The fund was down to about $320 million on April 1 and the state is paying out about $24 million a week in benefits, according to the Virginia Employment Commission.

The commission projects that unemployment taxes would increase to $157 per worker next year and $201 in 2011.

Armstrong said the federal funds could slow the erosion of the trust fund and that lawmakers could roll back Kaine's proposed expansion when the funds expire.

"If we don't take the $125 million, it's going to one of the other 49 states, and there are Virginia taxpayer dollars in that," Armstrong said. "I have a real problem letting that money go to another state and I have a real problem with not using it if it can help some people."