A federal statute directs payment of federal funds to states for use in the improvement and expansion of state hospital facilities. The terms of the statute provide that ''No state shall award a contract for hospital improvement or expansion financed in whole or in part by funds received under this section unless said contract requires that the contractor pay its employees a minimum wage of $10 per hour.''

A state contracted with a builder for the construction of a new wing on the State Hospital, after receiving funds for that purpose under the federal statute. The contract did not require the builder to pay its employees a minimum wage of $10 per hour. Upon learning this, federal officials demanded that the state either modify its contract with the builder or return the funds received under the statute. When the state refused, the federal government sued the state in federal court for return of themoney.

In the action by the United States against the state, whom should the court findfor?

(A) The state, because fixing the minimum wage of employees is a traditional state function.

(B) The state, because the regulation of hospitals and of construction practices are traditional state functions.

(C) The United States, because Congress has the power to regulate the way in which federal funds arespent.

(D) The United States, because some of the materials used in hospital construction are traded in interstate commerce.