Eventually fiscal federalism grew to replace cooperative federalism. Changes were made in taxing and spending privileges in the federal government. The federal government influences the state governments by distributing money in the form of grants-in-aid.
Although the states sometimes need money and the federal government to begin state projects, it comes with the price of federal supervision and regulation. Not all states want the federalists noses in their business. But the consquences of not accepting federal aid can sometimes be worse than being commanded about.
For instance, if a state refuses federal aid, keeping state schools and roadways in optimal condition is hard without plenty of money. Also, if federal aid is accpeted but the rules set in place are not followed, funding can be cut.
Its up to the state to decide what will be the best for its citizens. Accepting federal aid can be good for a state with little money for funding projects, but at the same time it may give restrictions that state citizens aren't pleased with.
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