Honestly? We should cut them off.
All these red states rely on blue states for their money. They literally couldn't afford to have roads and schools if it wasn't for federal funding paid for by states with healthier economies and more liberal policies (no coincidence).
So let's take their fucking money. They want to drive the country into the dirt? Let them pay their own way and we'll sit in our relatively progressive bubbles until they realize they do, in fact, need us.