From (of all places) the LA Times:
The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.
Schwarzenegger's office was advised this week by federal health officials that the wage reduction, which will save California $74 million, violates provisions of the American Recovery and Reinvestment Act. Failure to revoke the scheduled wage cut before it takes effect July 1 could cost California $6.8 billion in stimulus money, according to state officials.
This is The Chicago Way, now transplanted to the White House: politicians taking money from unions, and using the raw power of the state to protect their cash flow. GM and Chrysler, and all the thuggish tactics being used to prop up the UAW at the expense of all other parties, were just the beginning.