The Federal Extortion Racket

moneymoneyThe Federal Government has developed an interesting method that they use to make the States obey them. They extort the States with money. In other words, they develop some sort of federal program (usually unconstitutional) that they want the States to adopt and then say that if the States adopt the program they will give them money to support it but if they do not adopt the program they will get no money. These are usually things like school lunch programs, Common Core, the Affordable Care Act or whatever other social program the Federal Government wishes to impose upon the States. The Federal Government also uses money to bail out failing States that support their political agenda and help create the illusion that these States are not having any financial problems.

The Founding Fathers never envisioned how the Federal Government would become such a massive money collection apparatus and never foresaw that it would use this apparatus to impose its will upon the States and abort the constitutional provisions for limited government. The ability to control State operations through this apparatus has given rise to the massive federal government operation we see today that seeks to control all aspects of life in America. If we are ever to return to a limited federal government this constitutional oversight must be addressed.


Ideally, we would want a Constitutional Amendment that would address this situation. That Amendment should have the following provisions:

— The Federal Government may not send any Federal Funds to any governmental entity below the State level.

— The Federal Government may only send money to the States in the form of a block grant with no spending restrictions attached. The States may spend the money block granted to them in any manner they so desire.

— The Federal Government may not send money to the States as loans, may not buy their bonds, or send money in any other form other than the block grants mentioned above.

— When the Federal Government remits money to any State they must send an equivalent amount of money to all the other States in like kind based upon population.

— The only exceptions to these rules occur when a State has a natural disaster, in which case separate federal legislation may apply.


So, for example, if California has 40 million people and Wyoming has ½ million people and the federal government sends California $40 million they must also send Wyoming $500,000 and every other State an equivalent amount based upon their population. The federal government may say that this money is for education (or anything else) but the State may spend it on anything they wish. This is in effect like a rebate program and if the States feel that the Federal Government is being too stingy they now have certain recourses more readily available.

18 Responses to "The Federal Extortion Racket"

  1. Need to stop the federal government from taking so much money from the people, so that they don’t have any money to send to the State’s. State funds should not be mixed with federal funds.

  2. We need federally funded programs (FFPs) and how funds are appropriated to the states NEEDS to be by following guidelines (GLs). If a FFP doesn’t have GLs in place for a FFP there should be no program. For states to collect on a FFP they must follow the GLs. It’s that simple.

    Unlike an operating expense (OPEX), Capital Expenditures (CAPEX) are hard to proportionate by scale or percentage. For example, to build a facility for a small number of ppl. can cost the same as for a large number of ppl. Walls are walls and land is land.

    Result orientated approach only works to get the desired result on 40M ppl. or 500k ppl. the funds will be clearing different but the goal will be the same. That works.

    Our government seems to have no problem setting goals, where they fail is in planning and strategy to meet that goal hence the term goals plans and strategy (GPS). This needs to be left for the professionals not the politicians.

    Our politicians don’t have the knowledge or abilities to execute a FFP. They are put in office under the impression they have the skill and knowledge to recruit those professional to execute a FFP.

  3. The federal government is using our own money to enslave us. Strength in numbers is our only hope to defeat the robbery that has been going on for such a very long time. The buck stops here and the DOJ and much of congress is trying very hard to block all progress but they forget who put them in office.

  4. I want a secured app, based on my ssn, that will allow me to vote in place of the politicians. There job will be to present the issues to me in an understandable way. I want this at all levels of government based on my address and voter registration. I call this iVOTE. It eill eliminate graft, corruption, the buying of votes by lobbyists. It will be a true democracy. The technology exists now. We wont need someone to vote for us. We will vote for ourselves. It will go viral. Now is the time.

    • Computers can be hacked and votes changed. We are seeing this in every election. There should NEVER be anything but paper votes. Those can be reliably recounted, and a record exists that can’t be manipulated by a stealth program.

  5. They need to be limited to the amount they can tax individuals. 10% and not a penny more. If that isn’t enough, too bad so sad.

  6. ivote sounds like the way to go! Let’s lead a push for this and also lowering taxes. They the Politicians just use our money for a lot of BS, and paying for Illegal’s to vote for them, and even legals.

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