Personally, I hope Mr. Ford changes his mind and keeps his election promises regarding a university for French-speaking Ontario.
In a general way, this crisis emphasizes just how important it is for the federal government not to forget its power of persuasion or the economic lever it has as a result of the transfers it makes.
Beyond that, the point of your question is really whether the federal government could pay the entire amount required to establish the university, if ever that were necessary, or if Parliament deemed it desirable. The answer is yes. It could do that by virtue of its spending power. It's called the federal spending power. Ottawa may spend in areas of provincial jurisdiction. Health is a good example. The federal government could absolutely step in and essentially save the day by absorbing the difference so the institution could start up. That kind of agreement could last two or three years until new ideas emerge at Queen's Park, in Toronto.
So the legal answer is yes.