The mask issue needs to be addressed. Any owner has the right to set any rules within their property. If you don't agree with the owner's rules, don't use that property. If you don't like the government's rules, refuse their money and move on. I used to think that bitcoiners should follow this simple libertarian rule. But now I see that not everyone does.
Discussion
That's what they did. They rejected the money.
But I don't think tax money should have limitations beyond how to spend the money.
Especially not on how staff, students and the population in general should behave and what policies can be made to enforce those behaviors.