> I don’t even know what to call someone who thinks the government should give private parties discretionary grants and contracts, but shouldn’t be able to use those to influence private actors.
The idea that the sovereign should be limited to follow law, due process, and the advice of experts in the administration of grants goes back at least to the magna carta and is so widespread that you would use a more specific term — a "constitutional monarchist", "republican", "democrat", or "democratic socialist", etc., would all agree on this point. The opposite point of view however, has a name — authoritarian — so you could call such a person "anti-authoritarian".