[xmstr]

All states accept federal highway funds. Source: http://www.governing.com/topics/finance/gov-state-budgets-fe...

[throwaway2016a]

That is true but why the level of bureaucracy in the middle? Why not just give the states the money directly and bypass the federal government?

Just because it is that way doesn't mean it should be.

An obvious answer, though not satisfying, is that some states are too poor for that.