The word nullify has been used for every act of congress that is objectionable on the grounds that it is unconstitutional but yet we dare not to use this word for the federal budget. Why? Budgets are nothing more than laws–laws that direct how federal money is to be spent and this law can be nullified much more easily than any other act of congress.
The reason for this is that every dollar spent is spent in a sovereign state to purchase property for the use of the federal agencies. When that property is used for a unconstitutional purpose or if that expenditure creates a unbalanced budged then the state can use its power of eminent domain to confiscate it which effectively nullifies that expenditure (and the law that property is to help enforce) in that state’s jurisdiction.
This may seem implausible but the federal courts have already determined that states can take private property for whatever reason it thinks of in a string of cases such as Kelo v. City of New London. While every single one of these decisions waters down the limits of eminent domain they can be turned and used for our advantage (insert evil laugh here). The states can use the eased restrictions to confiscate any property of the federal government itself.
The state can take any item that is being used for an unconstitutional purpose thus giving it the power to nullify unconstitutional expenditures within its own jurisdiction. The states can nullify any federal budget expenditures that is being spent within their own borders by confiscating anything of the federal government’s that is being used for unconstitutional purposes. In other words, a farm tractor that is being used for illegal purposes by the federal government becomes official state property which effectively nullifies that portion of the federal budget.
Not only can this power be used to assist the federal government stay within the confines of the constitution it can use this power to ensure that the federal government stays within the confines of its own wallet. This is the real purpose of the this idea and if enough states do this successfully it will effectively make sure all budget expenditures are within its constitutional and budgetary limits since no expenditure within a state can take place if it violates either of these.