Sure for research but they are not funded by the state government to operate. There is no instate/out of state tuition difference for example.
I don't think I specified State government. Private schools do receive government money. Student loans are federal money and private schools do receive it and count on it heavily when they put together the financial package. They also rely or used to rely on the student work program that is mix of federal money. If it weren't for that federal money they would not fill their colleges. Cut the federal loan program and schools might be forced to reduce tuition. How would kids go to college? Well, they would have to work their way through like it used to be. No frills, maybe commute from home, maybe pick a college close to home rather than a big 10 or expensive private college. That's life.