Simple way to solve the issue: switch social program spending to the the League system, including university funding.
Harvard being in a blue state could receive grants only from the Blue League . The Red league wouldn’t have to pay any grants to it at all.
Red League students would still attend as out-of-league students, no different than out-of-state students in concept. Increased tuition, which is only fair, because they did not pay taxes to support them.
A win-win situation: Red states no longer have to fund universities which they detest, like Harvard and Stanford. Blue States would no longer have these universities interfered with .
It goes without saying that any income gained by patents granted to these universities would stay in the league coffers. Stanford makes about $60 million a year in patent income.