This might be due to my lack of comprehension, but your argument seems less focused and sometimes veers into broader concerns about government interference and semantic or technical arguments, making it somewhat less compelling in the specific context of legacy admissions and funding oversight for me. I don't think I can gain some new insights from further discussion, but if I ask this one last time (you do not have to answer), what is your stance on legacy admission ( I don't think you expressed your opinions on this ) with regards to government funding the students who attend schools with such admission policy? I can only assume your position, and for that let me quote my previous comments: "To me, you are advocating (tell me if I am mistaken) that university can have any admission policy (including unfair policy) they want (free from government oversight) even if federal money is provided to them (indirectly of course) as a result of such admission policy. I disagree with this. If you're advocating to grant total freedom to university with regards to admission policy and get rid of federal support for all schools, then I am in agreement with you."

BTW Pell grants have restrictions on school as well (many vocational institutions do not adhere to such restrictions, so they are not qualified to accept Pell grant money). The below are examples of such requirements:

Accreditation - Schools must be accredited by a recognized accrediting agency.

Compliance with Federal Guidelines - Schools must comply with federal regulations concerning how they manage and disburse student aid, including ensuring that funds are used properly and that students maintain satisfactory academic progress.

Non-discrimination - Schools must adhere to federal anti-discrimination laws <= this might be further strengthened to incorporate legacy admission as well.

Reporting Requirements - Schools must regularly report data to the Department of Education about their students, including Pell Grant recipients, and meet financial responsibility standards.

Misuse of Funds - Schools found to be misusing federal funds or engaging in fraudulent practices can lose eligibility to participate in federal student aid programs.

If a school does not adhere to such requirements, students cannot even find the school on FAFSA application to select. I remember one instance where school was delisted from FAFSA application (University of Phoenix I believe because they did not comply with federal regulations).