How can Bush raid the TARP? Wouldn’t that be illegal under the terms of the TARP to have them bailout the carmakers? Would there be a conservative group or some senators or congressmen that would consider suing to block it?
You make the silly assumption that we have a government that is acting under any sense of the rule of law. It doesn't matter anymore exactly what federal money is allocated for, it's all money and it'll be spent any way the people in power feel like spending it.
1) No one seems to care about the Constitution (see Obama's birth certificate controversy), nevermind other laws.
2) Law is whatever judges and legislators want it to be at any given moment.
I'm, uh, pessimistic.