If the students are united against this statement, and only the administration and current faculty are for it, then the battle is already lost. Because the students of today are the faculty of tomorrow, making this statement a temporary patch that masks how bad things have gotten.
I don't think that's necessarily true. Some of the students of today are the faculty of tomorrow; in my experience the students that eventually become profs are not representative of the student body as a whole.
For example, much of the funding available in US physics is DoD funding. Many students (and grads / postdocs) have ethical issues with working on DoD projects. However, refusing DoD funding is not a good move for early-career researchers. So in my experience successful new profs tend to be more "hawkish" than grad students in general.
