Congress doesn't have the authority to give the money
That was not contested by either side of the lawsuit, nor by a vast majority of the American populace, so it really doesn't matter. If you disagree, that's fine, but it is irrelevent.
Congress started giving our money to colleges for the purpose of educating people, not recruiting students into the military.
If you give out money, you can put restrictions on the reciept of those funds. You can give a check to your brother for schooling and say that you will continue to give him a check every time tuition is due, as long as he does not drink any alcohol. Even though the funds are for education, you have put a restriction on the further reciept of education funds based on alcohol consumption, and that is allowable.
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