That teaching has been around for hundreds of years, and in fact, the US Constitution enshrines it in "Federalism" (although largely in the breach since 1900 or so.)
Now comes Abp. Gomez of Los Angeles, who apparently never read Catholic social doctrine NOR the US Constitution.
As thousands of people find themselves out of work due to coronavirus (COVID-19) related business and school closures, Archbishop José H. Gomez asked California Catholics to support extending unemployment benefits to Church workers. ...UC insurance has ALWAYS been a State-legislated matter. Asking the FedGov to override State law flies in the face of both subsidiarity and the Constitution--and of course, it's inviting trouble from the Feds forever.
...“Please join me in asking Congress to extend unemployment benefits to Church workers who might need this relief. Let us stand together in solidarity for our brothers and sisters in this time of trial and need.”
He urged Californians to contact Senators Dianne Feinstein and Kamala Harris, as well as local representatives, today, to ask them to support an effective solution....
Perhaps the Archbishop should find a solid Catholic adviser someplace in California. That person will NOT have been educated by the Jesuits, of course.