"Federal funding" is a misnomer. All of the funding comes from the taxpayers, and they're the same taxpayers. So when the federal government takes your money and then says "you can only have it back if you do X" they are not actually funding something, they are imposing a fine for not doing it.
Ok, and when they take money from my paycheck and give it to a strung-out, unemployed junkie who paid 0 federal taxes, what are they fining me for?
This only works if you pretend fiscal transfers aren't a thing.