This is something that has been going on for years and ends up filtering down well beyond the initial entities that were restricted. For example, my company is a vendor to several universities and we have to certify for some of them that we are not boycotting Israel in order to renew annual contracts.

So much for freedom of speech, etc. Are they going to ban donating to particular parties, requiring such donations, etc.

There will be lawsuits, no doubt

so why is the american government allowed to choose who to fund based on political speech?

is the first amendment written badly such that its only about negative things?

There is something extremely twisted about making boycotts illegal. At any rate what's stopping the institutions from making other arguments about boycotts that only incidentally target Israel? For example, they have every argument to not associate with institutions that may be held liable for gross human rights abuses.