It won't help in terms of paying for it, but the issue of having a lot of graduate students is way more complex than just figuring out the financing, unfortunately. There's still a load of debate about whether universities purposely take in more graduate students than they can mentor and assist in placing in the job market because they need them to teach the basic courses of the university so their full professors are freed up to do other things.
For example, the English department regularly takes on dozens of graduate students in creative writing, master's degrees and PhDs and gives them a section or two of basic composition to teach (your 101 or 102 required courses). The vast majority of other teachers who teach the rest of those basic comp courses are called adjuncts -- these are folks who've already graduated grad school and do not have the sort of job in a university or other job site that their higher education would normally allow. So they teach four sections or so of this basic comp at a cut rate salary to try to make ends meet while they figure out wtf they're doing next. My department will graduate a handful of PhDs, around 8 - 10 master's degrees, and about another 8 - 10 creative writing masters students this year. For sake of comparison, my department will hire two people this year for full time work -- and those are all outside hires, meaning none of our own students got those jobs. So we have around 35 people hitting the job market this year, and the vast majority of them won't find jobs befitting their degrees. However, we still need to find teachers for 120 sections of composition this fall... Guess where a bunch of those newly minted degreed students will be teaching this fall? We'll be hiring them back at peanut wages to do it. So basically, there is a glut in the market. All these people with higher grad degrees -- no real jobs with a real wage and benefits to provide to them.
It's not exactly the same for other departments, but it is very true of those departments who teach the core classes that all students must take regardless of major. So while I think cutting federal funding for grad students is a big mistake, the truth is, universities encourage taking on too many grad students as it is, and they exploit their labor. If we took in fewer to start with (or only those who we could truly mentor and support), the funding issue would not be a big deal.
Just my opinion.