My school has mandatory chapels and we have federal financial aid.
If you do not attend the required number of chapels per semester (14), you won't be able to graduate. Period.
I somehow doubt you are explaining the Grove City situation correctly.
Grove City College went a bit farther. They insisted that they have the right to use religion in admissions decisions.
However, I'm probably not only not explaining it correctly or completely, I probably don't understand it completely either. :)