Cities give a lot more in federal taxes than they get, but the percentage of what they give that goes to transportation funding is negligible. >75% of the federal budget is social security, medicare/healthcare and the military, and the next biggest category after that is interest on the debt. Transportation is only ~2%, and almost half of that is things like aviation, railroads and funding for local public transit.

If you want more local money in the cities then there's a lot more to be had by e.g. raising the retirement age than by eliminating federal highway funding, which we still kind of need unless you want to stop maintaining the interstate highways.

Or if you really want to restore state fiscal control, transfer social security and medicare entirely to the states, and make the National Guard constitute more of the military.