The union investment in Barack Obama continues to pay dividends:

The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.

Schwarzenegger’s office was advised this week by federal health officials that the wage reduction, which will save California $74 million, violates provisions of the American Recovery and Reinvestment Act. Failure to revoke the scheduled wage cut before it takes effect July 1 could cost California $6.8 billion in stimulus money, according to state officials.

This kind of federal government bullying against the states was entirely predictable, and is why many governors said “thanks, but no thanks” to federal dollars.  Gov. Schwarzenegger was not one of them.  In fact, he stabbed these principled conservatives in the back when he defended the porkulus and joked that if they didn’t want the money, he would take it for them.

Who’s laughing now, Arnold?