Odd, that, because it seems to me that federal dollars are used for road construction in my state. It even tells at every road construction site on a pretty orange sign how many dollars for the project are from the state and how many are from the federal. The federal government also provides money to state-funded schools, libraries, etc.
I mean, I looked over your statement, to make sure you weren't trying to say how things should be or something....but no, it seems you actually think this is the way things are. And you are dead wrong. The wrongest of the wrong. You could not be wrongerer. Federal dollars are used constantly for programs that you'd think would be state/community matters. Where do these dollars come from? Why, from the citizens of that state, of course (though there is also some redistribution going on, from wealthy/more populous states to more rural).
They're nice enough to take money from the citizens of the state (and thus the state's tax base), and return it in the form of funding for things the state could have covered on their own had the federal government not been taxing their citizens for them (and thus the state would have been able to raise taxes for them). Why are they nice enough to play middleman with my tax money? Why, power of course! Hard to use the threat of withheld funds to force states to do what you want if the states manage to get to the tax dollars first.