Have you ever seen a RA school offering work study funds and jobs for distance learning students (available to people who are living in another city)?
What do you mean? Do you mean fellowship program at distance learning? If so, I doubt it; however, as far as I know that Capella University starts that program, but sure about reducing the students' tuition. Capella University starts to have teaching position for Ph.D students to teach at Master, and undergraduate courses.
I am a research assistant for my work study and do 90% of my work from home or in the community, at a distance. Although, my program is on a physical campus... I am not sure if DL programs/schools offer work study, but I assume that they would if they receive other forms of Federal Financial Aid.