If I was a governor of a blue state, I’d be strongly encouraging laid off government workers to work for my state. I’d also be working to eliminate the trade deficit (including federal taxes and spending) with rest of the US.
Why subsidize this crap if it’s not going to lead to economic prosperity, security, or even pretending the constitution still exists?
"States rights" is not going to save us. Conservative think tanks push "state rights" so hard because they know they can get overrepresented in state government via gerrymandering/voter suppression. Anything that slips through the cracks after that can be appealed to a higher court, up to SCOTUS, which they have made sure is full of judges sympathetic to them. A recent example would be SCOTUS overturning the Chevron doctrine and its possible effects on California's environmental rules.
Sure it has but only when a Democrat is in office. Look at all the things that Biden/Obama were prevented from doing by the legislative and judicial branches.