The Fly Precedent

I'm lame enough that I'm watching C-SPAN on a Monday morning. To be specific, it's C-SPAN 2. I'm watching a "moot" (which I think means "mock") Supreme Court case being heard by eight individuals (various law-associated folks, including at least one journalist) at William and Mary Law School. The case is Rumsfeld vs. the Forum for Academic and Institutional Rights (FAIR), and it poses the following question:

If an institution of higher education receives federal funds, can the federal government then require the same institution to allow military recruiters on campus? Or, to simplify, can federal funds come with conditions attached?

So, tell me: what do you think? Here's some background information about the case.