As usual Vercua you are wrong. Remember when Obama threatened to withhold funding to the state of Arizona because they were going to enforce immigration laws that Obama wouldn't? Oh yeah, you were all for that.
Remember when the federal government told the state of Louisiana that they wouldn't get any highway funds if they didn't raise the drinking age to 21? Yeah, that happened.
The courts have supported this kind of behavior for a long time because it is simple, these institutions don't have a RIGHT to this money. They can choose not to accept it. If the government makes accepting it contingent on certain behaviors then that is their choice.
Absent that the government has zero right to tell Harvard how to handle its affairs. But, if Harvard wants the money and the government makes accepting the money contingent on certain behaviors then that is legal and upheld by precedent. You do know what precedent is don't you Vercua?