"WTF does that have to do with the CONSTITUTIONAL issue here?"
She was just giving them an example of how their free speech was clearly not being restrained.
But the problem is that there that was never the issue. They are arguing that free speech issue as a distraction. She was clearly fooled by it, as you are. Chief Justice Roberts was not. The question is solely whether Congress may fund education with strings attached, other Constitutional restrictions notwithstanding. This is long-settled law; it can.