Then they built a huge number of forts and hired soldiers to fight the Indians so the land could be settled.
The feds paid for the territorial govts.
And it was the people back east who were paying for this.
A lot of people will tell you that the way Congress disbursed the western lands, or didn't disburse the western lands, was done in a way that would limit the power of the west(relative to the east), after these western states entered the union.
I believe it began with the survey of the Northwest Territories. There were dispute going back to colonies about where the western boundaries were. The feds ordered a survey of the Northwest terr. After the survey they sold off parcels of land and retired the national debt which came out of the revolution war and thereafter,
I believe this was the model for subsequent territories and one of the reasons the income tax was not permanent until the 1900s after we ran out of new territories.
I would like to see a balanced budget amendment followed by a federal land sale off. Say 50% sold and 50% under state control. We may not retire the national debt, but we could pay it down by a few trillion.