Real life math from real countries says you're wrong. The federal government is that contract between states and those smaller states are generally net receivers, not payers, so when they veto projects not dependent on them for anything and which don't cost them anything, your entire argument is dead in the water.
You do not have a legitimate interest in that the budget is prevented from building good things like infrastructure for states who due to regulations and state plus federal law must use the federal government for coordination.
The option is of course that the big states stop funding the feds, this directly harms the small states as they used to be net receivers of funds, and now the fed is only a paper entity that does nothing. If the small states veto self funded projects by large states which gets managed federally, they deserve this outcome.