No doubt what he did was wrong. But if he really did lose his scholly and he can't afford Texas anymore I would consider a suit. I mean ****, this is what the ACLU is for. The guy was essentially fired by the state of Texas for expressing his political views outside of work.
Let's say he was a government employee in Texas. On his free time, he is an active member of the KKK. However terrible and horrible being a member of the KKK is, they can't fire you for your political orientation, sexual orientation, religion, race, gender, etc. </p>