So what? I see nothing wrong with reliance on government being replaced with reliance on more local entities (i.e. one's friends, neighbors, church congregation, local government, etc) which is what happens in the near term when trust in higher level authority collapses. If the state doesn't think the feds will give them money for roads then they'll figure out a way to build it themselves. If the community college doesn't think they'll get federal grant money they'll get the state to give it to them or fund-raise it themselves.
Sure, if the federal government just stopped handing out SSI checks, highway dollars and research grands tomorrow it would suck a lot for a lot of people in the short term but in the long term you'd see towns and states running their own programs to compensate. Something always creeps in to fill the vacuum.
Edit: JFC people, I'm not advocating for some sort of near-anarchy where the only government is local. I'm saying that government action should always be performed on the most local level possible and I see no problem with an erosion of trust in Federal government as a means to that end.