In live of the recent student government of the University of California, Irvine to remove all United States flags from the premises I would propose to remove any funding from the nation that flag represents from all facets of that institution.
The representatives of the students have make it clear they don't wish to be associated with the U.S., so the U.S. should respect that. All federal Pell Grants, Educational Institution funding, etc. should be ceased immediately and completely.
I don't want my U.S. tax dollars funding students or an institution that do not appreciate the freedoms that they have which are represented by that flag. They don't want the U.S. in their school, so they don't want it's money, either.