The latest attempt at publicly funded software is Gaia-X, the EU's (actually mostly France and Germany's) plan to build a European data infrastructure. I really don't want to be negative but I have a really strong feeling that it will fail as well (of course not before all the money has disappeared).
It would actually be cool to see what a organization like Mozilla could do with a sizeable public grant, they can't possibly spend that money worse than it's being spent now.