But the story in the OP just makes me laugh. It is why our government is going down from a thousand cuts. This is just one of them.
Think of our governments budget as a bucket that needs to hold water. This sort of thing is like a pin-hole in the bucket. That's ok because water is being poured in at a pretty strong rate. Now add the other entitlements, the pork programs, the bail outs.
This is what our bucket now looks like, and why we are not long for this world: