[luddaite]

With regard to firing grad students:

I think it is quite rare to see grad students fired. Typically there are two strategies to get rid of a graduate student:

1) Just graduate them (either with a masters or with a undeserved PhD)

2) Make their lives miserable so they quit.

I don't think switching the source of funding for graduate to the department really prevents either of these from happening.

[shoguning]

Maybe, but it makes it a lot easier to transfer to a different lab. It's also part of a cultural frame of mind. In broad strokes, here are two approaches institutions can take to recruiting grad students:

i) Admit tons of grad students, treat them like shit and just assume many will drop out/quit so you don't have to do any long term planning on resources/admissions.

ii) Plan projects and resources, vet candidates and treat grad students well. Attrition will be lower so this does allow for longer term planning. In addition, here the institution and department are involved in the planning/resource allocation and presumably personnel issues as well. In general culture will be professional.

IMO i) gives signals that harassment and other mistreatment is tacitly allowed. With ii) the grad students are valued and signal is given that this should be a professional environment. Another generalization, but I have observed American universities, especially engineering departments are close to i), European universities (some countries more than others) are closer to ii).

[beat]

Switching funding is different from removing funding. Right now, when a grad student's academic expenses are covered by their work for a specific professor, the professor can revoke that grant - firing them from their work, and also taking away the money that is paying for their grad school (and probably paying their rent as well). If the student is independently wealthy or willing to take on massive additional loans, they might stay in school. More likely, they are forced to drop out or switch programs.

Not to say switching funding to the department is a solution, but a professor's power over the funding is definitely a significant problem and source of great risk for students who are being sexually harassed by their professors.