No issue with foreign competition. Big issue with tax dollars going to foreigners. Why not welcome any foreign player who can help the team, but on their own dime, not the public dole. Or even limiting foreign scholarships to 50%? I understand that private colleges would have a big advantage, but that doesn't mean we should just accept it. Sometimes the right thing is detrimental, but you do it anyway.
Are you talking about federal tax money or state? How does federal support to colleges get into athletic scholarships?