The government simply won’t give churches the money if they don’t participate and toe the government line. That’s the way it works.
Oh, and it’s separation of Church *AND* State, not Church *OR* State. Just like it’s freedom *OF* religion not freedom *FROM* religion.
Oh and the government is to make no preference over any particular religion, if you don’t believe that and believe that Christianity should be prefered and first in line, go to Israel and talk to the wall.
I don’t disagree with what you wrote, but it really has no bearing on the discussion. Which is how the mandate is an assault on religious liberty.