Beyond just the perverse incentives for university administrations discussed in the article, this would be quite disappointing. The constant push towards specialization has led to most undergraduate programs losing any liberal arts rounding, which has some obviously negative impacts (eg the perennially-absent ethics and history courses for engineers). With a further reduction in the number of students in the arts and humanities, I imagine this trend would be pushed significantly further (eg the vast majority of voters having last taken a history class in secondary school/never having taken a political science class, school districts following this lead and cutting the already-paltry funding of the arts and humanities for primary and secondary schools). Hopefully the lawmakers see that investing in STEM doesn't need to be at the expense of the arts and humanities.