However, Chertoff claims it was done based on the merits and that he had no imput in deciding which areas got how much money.

Without delving into the details, it's hard to know whether there's hanky-panky going on or not. A DHS press release about the grants is [link|http://www.dhs.gov/dhspublic/display?content=5667|here] with links to the actual numbers ([link|http://www.dhs.gov/dhspublic/interweb/assetlibrary/grants_st-local_fy06.pdf|2 page .pdf]) and links to other information. Comparing this years numbers to older ones is left as an exercise for the reader.

Do note, though, that California gets more total money in these programs than NY and that's hardly Bush country.

Cheers,
Scott.
(Who agrees it looks like NY and DC are being punished, but who isn't ready to say that that's what's happening. Note that NY's been very good in milking this particular funding source.)