“How dare we sell out our values for a few dollars from the government?”
I will add that it is easy to be righteous on these matters when you aren’t the person who will be responsible for handing out the layoff notices when you’ve turned down the government funding and have to close the institution. The fact is, the Albert Einstein College of Medicine, which is where the Christian and Gay clubs are, is pretty much the only truly frum-friendly medical school in America. Students never have to worry about a class on Shabat or Yom Tov. The cafeteria is kosher. There are multiple minyanim every day, many shiurim, an active beit midrash, several orthodox rabbis on campus, a large Shabat-observant student population that lives on campus, and a few frum faculty members like myself. And we do pretty well in the medical school rankings; I just found out today that yet another of my research proposals is getting funded. Would I prefer that my institution adhere more strictly to halachah? Absolutely!!! But it may not be possible to run a medical school totally according to halachah in the United States. Would it be better to shut it down? I now have a sufficiently strong reputation as a researcher and teacher that I am sure that I could get a job somewhere else that would respect my observance. Junior faculty might face a harder time. And students have no ability to say “no”. The Albert Einstein College of Medicine makes sure that they do not have to be placed in that situation.