States Rights?

Do states have any rights anymore? I heard this morning that the stimulus bill has a provision that the legislatures of the state can accept conditional "aid" from the Fed even if that particular State's law or constitution says the governor needs to approve it. I knew the Congress felt that Federalism might not be that great of an idea since state governments couldn't fund their programs so they need to take money from other states to even things out, but this is a ridiculous intrusion into the workings of the state governments and I sincerely hope that some Governor challenges it and gets it overturned in the Supreme Court (though that's probably political suicide) just to keep the office out of the fed's hands.