If I give a school 20 million yearly to research a specific form of cancer, and I find out that they instead used that money to upgrade the plumbing in their dormitories and spent nothing on cancer research, I would not give them 20 million ever again.

Sure, due to funding cuts students will suffer with slowly degrading infrastructure and will need to do plumbing fixes at some point. But that doesn't mean people who give them money for one purpose are happy with it being used for another purpose.