I don’t think states rights is defined by whether they receive money from the federal government.
Louisiana didn't have ant federal funding for roads for years because they were refusing to raise the drinking age from 18 to 21.
In general, it's amazing how reliably crypto-authoritarian points are prefixed with "I don't see how". It exploits our natural advantage to assume good faith and difficulty understanding, rather than a willful ignoring of coercion.