The federal government steals from children by planned deficit spending. It also steals from lenders when it inflates currency by printing more money.
Some of these ill-gotten gains are used to bribe or reward state governments, such as recent “stimulus” funds going to state employee unions. This, because states increasingly can’t afford the unions but aren’t willing to balance their budgets.
And note that many state governments do for subsidiary governments what the federal government does for them. They borrow, spend more than they have, and dole the dollars out to county or city governments.
Maybe this would be tolerable if all those budgets were balanced. But I’m more inclined to believe this practice contributes to the bloated, overweening “Ruling Class”. The Federal Government was never supposed to do anything except what the Constitution requires it to do. It certainly isn’t supposed to bribe or punish states for the purpose of social engineering.
The concept of federal “matching funds” is monstrous when both governments are running up debt. If a government can’t fund itself without help it must shape up, not be bailed out. Otherwise you get…well, what we’ve. Financial servitude for tax-payers and financial slavery for taxpayers-to-be.