What would happen if by some fluke congress and the president agreed?
If they were all progressives, they would raise taxes and pile on the legislation, give out favors to their friends. If they were all conservatives, they might cut some social spending and give out favors to their friends. If they were libertarians, they might cut taxes and all sorts of spending. And give out favors to their friends.
In all cases, voters would register some degree of displeasure at the first elections. Blowback! Some of their oversteps would be repealed, especially in the case of the libertarians, because whatever the wisdom of such policies, they are unpopular. All three would be blips in the data, the system would return quickly to the status quo, if indeed much happened at all.
What if we did something else. What if we allowed any district to opt out and produce their own "public goods" or negotiate for them with local state or central government? Allow each district to veto state or federal law and arrange their own? Secession, nullification, subsidiarity!
Ironically, according to the dominant paradigm, we would need to use politics to reform politics. That possibility seems remote. We need a new paradigm. Where can we find one?