One fundamental reason for this is that the German law devolves responsibility for education to the states. The federal government is not allowed to influence u

One fundamental reason for this is that the German law devolves responsibility for education to the states. The federal government is not allowed to influence universities and funding is considered influence. These research institutions are formally not education and thus can receive federal funding. They are, however closely related to universities - using the same facilities, the same personnel, often on-campus or right next to it.