Earlier quoted context omitted.
> STEM students are subsidized by liberal arts students Can you provide more context for this? How is the cost of teaching a STEM student higher than the cost of a liberal arts student? The classrooms are roughly the same. STEM student labs might be more expensive to manage, but that equipment is/(can be?) funded by research grants.
Research grants pay for research equipment. They do not cover student labs in any way.
(1) Many grants have a mentorship / training / giving-back component. This is one of the merit-based criteria NSF reviews on.
(2) Research grants have overhead which feeds back into general budgets. At elite schools, this is about 2/3 of the money. A typical split might be 1/3 to the department, 1/3 to the school, and 1/3 to the project. It's kind of a financial scam. Nominally, these cover buildings and admin time. Practically, these feed into general budgets which do include labs and teaching. Corruptly, a lot of the money gets funnelled in creative ways to improve professor's lives through fancy faculty clubs, get-aways, and in some cases, creative (but legal) embezzlement with money ending in people's pockets.