What people should be doing is be insisting their state legislators exert their 10th amendment powers and tell the fed gov to pound sand. Stop tax remittances if they are bullied like this and tell them to enforce their unlawful orders.
The carrot of withholding federal funds loses its teeth if they don’t have money to withhold.
Not to insult, but states are completely run by federal funding. There’s absolutely no way they’d do anything to stop that money.