When I say funding, I include students taking government-backed student loans. About the only colleges left that have true freedom are Hillsdale and Grove City, because they are not tied to any government money in any way.
Americans have allowed government to have a hand in everything, and this is the result. I’m not blaming the Catholic institutions in particular; we are all at fault. When we let government take a major role in education, health care, insurance, and business, we lost our freedom. Government control of every aspect of our lives was only a matter of time.
Hillsdale and Grove City are just as much subject to the evil HHS "mandate" as any other college, or any other employer, for that matter. It has nothing to do with whether they take government money, or not.