It's not as simple as that, either. Every research grant comes with an "overhead" charge on top that goes to the university admin, which can be something like 60%.
And moreover, it's not just the research grants that are being threatened, as seen in TFA. There's also the massive subsidy in the form of tax exemption. No other hedge funds receive that kind of preferred tax treatment. Only universities.
So I have a rare disease. The only treatment is surgery. However, there is an ongoing study on a promising treatment at an elite university for a very effective and simple drug-based treatment. That type of research funding is absolutely being threatened. So, yes, it really is that simple.
If only Trump were trying to force universities to be more efficient with their spending. However, both of us clearly know that is not what is going on here.
Yes, about half is skimmed off the top by the university, called 'overhead'. This is used to fund everything, from research-essential things like paying for heat and maintaining buildings, to less obvious but still research-essential things like IP lawyers to deal with contracts and campus security. However, SOME of the overhead will end up supporting things that are 'contentious' like DEI enforcement or whatever.
What's being threatened is funding for research being done at these schools. That's a huge difference.