Gov. Tim Pawlenty, who has accused Democrats in Washington of running a “Ponzi scheme on the Potomac” with deficit spending, defended tapping federal money to balance Minnesota’s budget amid suggestions of hypocrisy.

Pawlenty reacted Tuesday to claims by Democrats in his state and nationally that he was benefitting from the type of spending he has chided. He has been particularly critical of the $787 billion stimulus package.

The possible GOP presidential candidate insisted his reliance on a still-pending Medicaid allowance to patch nearly one-third of Minnesota’s $1.2 billion deficit doesn’t contradict his calls to rein in federal spending.

“This is completely consistent with what Minnesota and every other state have always done throughout history, both parties. There is no state, no instance where people have refused to participate in the Medicaid program,” Pawlenty told reporters. “This is not designed to be stimulus money, this is the federal government paying for a program it mandates.”

The money flows through a special account meant to provide an incentive to states to commit dollars to Medicaid programs. States received extra money through the Medicaid formula as part of the stimulus. Congress is debating whether to keep paying states at the elevated level as it considers President Barack Obama’s latest budget proposal.

If the money doesn’t come through, Pawlenty said he would push for further state spending cuts to make up the difference.

U.S. Rep. John Kline, R-Minn., said Tuesday that the money Pawlenty is counting on might not pass Congress. He said he may vote against the spending even if the governor needs it to balance the state budget.

“If I believe that it spends too much money at a time when we’re running record deficits and piling up a record amount of debt, then I wouldn’t support additional funding,” Kline said.

State Sen. Dick Cohen, DFL-St. Paul, who leads the Senate Finance Committee, told Pawlenty’s budget advisers during a hearing Tuesday that the governor was engaging in “a slight touch of hypocrisy.” He said he hopes Pawlenty will lobby for passage of the federal spending.

“The governor is trying to have it both ways,” Cohen told The Associated Press in an interview. “In his national campaign, he states very clearly this is wrong public policy. In the preparation of his budget, he clearly thinks it’s correct public policy.”

Democratic National Committee Chairman Tim Kaine struck the same tone in Washington, lumping Pawlenty in with other Republicans seen as playing both sides in the federal spending debate.

Tom Hanson, Pawlenty’s main budget adviser, said Minnesota wouldn’t turn away federal dollars that Congress approves.

“There’s a big difference between opposing something and, once it becomes law, getting our share,” he said.