Sure, but the benefits of their engineering degrees are not limited to, say, Presbyterians.
What about someone who is getting a degree in a subject I object to from a religious perspective. Do I have to fund their education?
You're not free to break the law, but you are free to petition for a change in the law. The state could cut off funding for, say, Women' Studies, if it wanted to.
Actually, the states can fund Divinity degrees if they want. Nothing in this opinion would stop them from doing so.
But they are limited none the less. So why should I have to fund their education?