UCLA has an endowment of 3.8bn$. Whilst I'm sympathetic to their desire to be further government financed for the work they do, I feel like government financing should be made available to those that actually need the money. The attitude that you have access to government funds even if you have the ability to pay yourself needs to change.
Endowments are not piles of money that they just sit on. Universities typically spend 4-5% of their endowment every year. The endowment is invested and managed to try and make that 4-5% a year spending sustainable indefinitely. If the policy was no government funding if you have an endowment the net result would be that endowments would be spent down, and then not only would they need government funding for the thing…
Agreed on restrictions and would be good to know how large the unrestricted part is.