Because people shouldn't lose their jobs over something like this. If they want to resign, sure. If students or others pressure them to resign, sure. But there shouldn't be a LAW mandating someone be fired from their position because they don't properly uphold free speech in public spaces on publicly funded campuses.
Who would you fire? The president? The deans? The campus security officers? The teachers who encourage anti free speech behavior? It's much easier to use a deterrent where people have a chance to correct themselves instead of going "Ah, you forgeted it up, get the forget out, NEXT"
You know very well that the people who are going to suffer from this the most are people who have no problem with people expressing their opinions. The deans and senior staff make way too much money to be hurt by a funding cut. Random professors who probably have no problem with students expressing their opinion or inviting conservative debaters to campus might see a decrease in pay or even get laid off because of some random events like the one that happened at UC Berkeley. Not only that, but the ambitious students who invested in their future and are now having their access to important research funds could very well just be screwed over.
This whole bill is basically centered around damaging as many people as possible rather than holding individuals accountable for their discrimination. It's easy to see whose responsible. If a teacher kicks students out for having a different opinion then it's clear they need to be fired. If the dean lets teachers kick students out for having different opinions the dean needs to be fired. It's not illegal and in fact boards already fire staff for reasons like racism or loveism. So why can't we just add opinion discrimination to that list? It doesn't make sense.
Your 'deterrent' is a waste of time when you can just punish the people directly responsible. It's not going to deter anyone, its just going to make everyone angrier at conservatives. Even conservative students are gonna be angry because they now have less research funds available to them just because some random ass teacher in another wing of the college was being a libtard