Er.... WHAT?! LOL! I knew you'd support this. Projects do not help the economy. Where the heck do you get the fruity idea that a government project helps the economy? Let's say the government hands out $1.2 Billion to pay off deficit welfare payments (actual example). How does this stimulate the economy? It doesn't. Moving on.
Raising taxes does hurt it, yes. But the federal government giving money to the states, because they can't figure out how to not over spend, will cause higher taxes, do you not get this?
In this case, the federal government bailing out the state, is WORSE than the the state just raising their own taxes... why? Because now the effect of overspending, will cause taxes on EVERYONE!
But more than that, now the state has no reason whatsoever to be fiscally responsible. "Hey looky there! We can blow billions on crap, and the federal tax payers will give us the cash!"
So now all the states are going to blow tons of cash, the federal government will Bailout-Barack everyone, and we'll all pay billions more in taxes! You think that's going to help the economy? Heck no!