My point, and perhaps I could have been clearer, is that funding is shrinking, while the quality of proposals is increasing or getting better. Funding rates for grants are now in the 5-10% rate, which means that even excellent, efficient, outstanding labs that are leaders in their fields can starve due to random chance.
It ha nothing to do with being entitled to research money. It has everything to do with the US spending research money efficiently and not capriciously. A research lab is not like a startup in that the intial time investment is quite long, and cutting that off inappropriately is wasteful. Additionally, it is incredibly inefficient to spend most of a researchers time churn through good proposal after good proposal, and no let them do research.
US science is shrinking dramatically right now, and rebuilding it will be a slow and long process, an if we lose the crown to China in the interim, the US may never be the bastion it once was.