The constitution was useful at solving 18th and 19th century problems. It has since become an albatross around our necks, and is no longer relevant to governance. When the constitution becomes inconvenient for conservatives, they just have the priesthood (the supreme court) interpret the pesky parts away to the point where there is no such thing as the rule of law in this country anymore. We have crossed Rubicon after Rubicon and still our so-called "opposition" party clings to lawsuits and the sanctity of the constitution in the hopes that THIS time the administration has gone too far and there will be legal consequences.
Americans no longer have a shared understanding of what it means to be America. There are two americas: red and blue. We have no empathy for each other, and we see each other as adversaries, moreso than we do Russia or China or Iran. The idea of America has become unintelligible.
And so, I think the best solution would be to end the federal system. We form a voluntary American union, similar to the European union. Dedicated to free trade and open borders between states, but membership in this union is contingent on meeting certain democratic standards.
We would still have a national congress to agree on things like trade and central banking, but the culture war shit that we've been screaming at each other over would be left to the states, as well as immigration enforcement, budgeting, education, and everything else the states have ceded to the federal government. Each state would have its own army, which we could voluntarily organize into a single national army for defensive purposes. But California would be its own nation, as would Idaho and Connecticut and west virginia. The specifics are yet to be worked out but the central idea is that we disarm the federal government from weaponizing its insane budget because of the political scheming of a handful of rural underpopulated Midwestern evangelical ethnostates
To be clear, I estimate the chances of this happening to be slim to none
See, I think this is the inevitable and indeed, intended outcome of the current administration. Corporate elites find capturing and corrupting state and local governments to be far cheaper, so their goal is to break up the US federal system into smaller parts and then go around buying entire towns/cities/states until eventually we have an official aristocratic dictatorship.
The biggest issue with the scenario even as you describe it is the extremely high likelihood of war between various states over things like aid, trade disputes, and sheer resource wars as e.g. Colorado runs out of water and Oklahoma continues to have no money and becomes desperate at the loss of federal funds.