It is a publicly funded school, and the government has some power to influence it, mainly control of funding. They likely could put up a fight, but government officials were threatening to fire various school administrators. They likely can’t actually do that directly, it would require a few steps, but the school doesn’t want to put up the fight I guess.
It’s the government censoring what gets taught at universities. Texas has been doing similar things at public schools too, but this is a university, which usually has more freedom in what gets taught.