The Daily Howler tells what happened in five sentences.
In the summer of 2005, Congress directed Alaska to build the bridge using federal funds. After Hurricane Katrina hit in September, this use of federal funds turned into a political firestorm. In November 2005, Congress rescinded its order—but Alaska was allowed to keep the federal money that had been earmarked for the bridge; the money could now be used for any purpose the state saw fit. One year later, in her campaign for governor, Palin said she still favored building the bridge. She finally dropped the idea in September 2007—specifically saying that Congress wouldn’t give the state any more money for the project.
BEFORE Palin became governor Congress had dropped the bridge, but not the money. During her 2006 campaign and at first in 2007 while governor, she SUPPORTED the bridge. Two years after Congress had abandoned the bridge, Governor Palin abandoned it because the state would have to pay for it.
She never told Congress “Thanks, but no thanks.” That’s a lie.