The Supreme Court ruled that the federal government could NOT impose "all or nothing" funding conditions on the states in

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The case National Federation of Independent Business v. Sebelius involved a challenge to the Affordable Care Act's individual mandate provision and its expansion of Medicaid. The Supreme Court ruled that while the federal government had the power to expand Medicaid coverage, it could not impose funding conditions on the states that were "so coercive as to amount to a gun to the head" and that violated the principles of federalism. This limited the federal government's ability to use funding conditions as a means of exerting control over state policies.

The Supreme Court Ruled That the Federal Government Could NOT