It can be both. The focus is on the coercion because the Federal Government has very little direct coercive power over Universities; other manners of coercion

It can be both. The focus is on the coercion because the Federal Government has very little direct coercive power over Universities; other manners of coercion (like withdrawing funding) would likely get stopped by the courts. But this threat is one way that the administration can hit Universities where it hurts.