He's an assistant professor, so although he's probably not rich, I imagine he has pretty good career prospects in general, and is probably financially secure already. I'm sure he could use the $60,000 (he was applying for it in the first place after all!) but I suspect that getting or not-getting that money isn't going to be really life-changing for him. So it doesn't seem so foolish to me.

Besides, what's the point in principles if you're not willing to sacrifice anything to stick to them?