Separation of school and state: The Grove City College case

In the 1970s, Grove City College in Pennsylvania was ordered to certify that it complied with Title IX, which outlaws sex discrimination. The private liberal-arts school was not accused of discrimination but nevertheless objected to the order on grounds that it took no federal money. The feds insisted, saying that since some students received federal scholarships, that amounted to an indirect subsidy from the government. Grove City took the case to the U.S. Supreme Court -- and lost.

~ John Stossel, "With Government Money Come Strings," November 7, 2007