Should the Government Fund IVY League Schools?

So, normally this could be a news item, but I believe it could be an interesting thing for the forums. So there is a report out from Open the Books, showing how much money goes from the federal government to the IVY league schools. The writers of the report say this assitance should end because the schools have enough money to fund the studies they want.

Article: http://www.foxnews.com/us/2017/03/29/critics-to-ivy-leagues-taxpayer-gravy-train-needs-to-end.html

Report: http://www.openthebooks.com/openthebooks_oversight_report_-_ivy_league_inc/

To start a discussion, I think there are two aspects of the critisms. 1. the topic of research. 2. the entity doing the research. and 3. the issue of whether university endowments are taxable income. #3 seems totally different than a research question.