This is actually part of the strategy of the sovereign citizen movement--take everything that the Federal government has in terms of handouts and put nothing back into the "coffers" of the government.
The Bundy family represents the most successful sovereign citizen outfit in America. They should be prosecuted as a syndicate or a crime family because this is part of a systemic effort to avoid taxation and the paying of fees in order to profit from Federally owned resources. To the Bundy's the fact that the Federal government gave them a "loan" is just part of the scam. They spent that money and laughed about it. They will not pay it back, of course. That's for suckers.
You're the sucker because you weren't smart enough to get a loan that you won't pay back for your "kin" or family.
Hypocrites? No, they're not hypocrites. They hate the government and they're not shy about taking money from it in order to "cripple" it because they don't have any shame. They'll take every penny they can get and whatever else. They don't care about fraud and they don't recognize the courts or official looking papers in the mail. They thumb their nose at it because they've already abandoned any pretense of living like regular citizens.
The worst thing a local cop or deputy sheriff will ever run into is not necessarily an armed criminal. It is a sovereign citizen who is armed has no intention of complying with lawful orders. Yes, they're one and the same thing, but anyone who self-identifies themselves as "sovereign" triggers a lot more alarms than a common criminal.