Government: kids who have too much free time tend to get education and crazy meritocratic or even socialistic thoughts. This will not do.

So the guy is willing to stop funding researchers because of some non-technical disagreement with the education department of Harvard?

Big countries love that. Russia does this to Ukraine for 3 years already.

decentralized

Decentralizing money management drastically decreases effectiveness. 100 money in one place may do a few times more than 10 places with 10 money each.