"Congress has not authorized the executive branch to waive any of the above statutory requirements governing the State Fiscal Stabilization Fund," Orszag wrote. "Accordingly, states' spending... must satisfy the statutory requirements."

It looks like states who want to fill their budget holes with federal taxpayer dollars will have to push for separate legislation. Somehow, I don't see Sanford begging for a taxpayer-funded bail-out for S. Carolina -- it'd look bad when he runs for president in '12.