I completely agree, but unfortunately it's not the same money that is in the initial grant, it's someone else's money. So by granting more money granting agenci

I completely agree, but unfortunately it's not the same money that is in the initial grant, it's someone else's money. So by granting more money granting agencies can theoretically save some other granting agency's money, but not necessarily their own. Meanwhile that other granting agency will get a lot more bang for their buck (and quantitatively more prestigious results) than the first granting agency. Bad incentive structures.