Government grants are competitive, not gifts. MIT competes (along with private companies and individuals) for grants and if the grant is won, a very lengthy and detailed contract is signed that outlines the terms of the grant. This isn’t free money that’s being handed out willy nilly. If MIT (or anyone else) violates the terms of a contract, the government should seek to nullify that specific contract. That would be the normal (and legal) thing to do.