Ignoring the part where the money is determined, since I doubt the average voter of any party knows how that is figured out, but actually, I mean, that is kind of what happens in the US.
On their own, the poorer states governments couldn't do much with Medicaid. So, it led to insane requirements like a maximum income of $3000/yr to qualify for Medicaid in some states. So, what did we do, as a country? Pass a heath care reform, where we took more in Medicare taxes from everybody, and then send the money to all the states so they all could make sure everybody up to a certain percentage of the poverty level in all states could get Medicaid. Now, just by the very nature of where the money is, that means money from taxpayers in California, New York, and Washington, likely help pay for better public services for people in Georgia, Mississippi, and Alabama.
And guess what, nobody in those larger states are saying, "we don't want people in Alabama to get better public services with our money." Sure, there's people who opposed health care reform in total, but now, even conservatives are telling the various states, this isn't going to be repealed anytime soon, so take the money to expand your Medicaid program, because it's right there for you.
I mean, personally, I wasn't pissed that Vermont was going to get a waiver to use federal funds to possibly start up a single payer program. I was jealous that there was a state willing to help their own people.