"Fund an infinite number of ludicrous ideas and one of them is bound to work eventually...."
In an ideal world, it would work like that. In the real world, sadly, it's more like: Fund an infinite number of ludicrious ideas, and every single scammer and con artist will make up some research to get that money.
Essentially we've seen this already in the Dot Com bubble. As it became obvious that you can get a lot of VC money just for being a dot-com with no further business, plan, companies were formed with just that as their sole business plan. I remember briefly working for a dot-com which literally, had only that plan: we'll have an IPO and get hundreds of millions for having a web-site! I was at the grand christmas party and the CEO and head accountant came on the stage and proclaimed that as the grand future of the company.
So, well, I would at least _hope_ that the government brings a scientist along and wants to see some proof of concept before forking over the dough.