Is this really to be considered hypocritical?

Here's a brief quote from a Huffington Post article entitled Koch Brothers, Grover Norquist Split On Ethanol Subsidies:

We oppose ethanol subsidies because they distort economic signals about price and demand and create inefficiencies that divert resources from productive activities to politically favored ones. We have also opposed subsidies for natural gas vehicles and other biofuels for these same reasons... Still, our company now produces and blends ethanol, because while we would prefer that there be no government mandates or subsidies, once such laws are in place we will comply with them. We will not place our company or our employees at a competitive disadvantage in the mixed-market economy in which we compete.

The same applies to those locations in which government at higher levels have spent stimulus funding - localized benefits and globalized costs change the picture. In the presence of distorted incentives, the best course of action may change.