Better that there be no school than one that accepts this government tomfoolery.
The idea that any and all compromises are fair game because "oh, we need a school" -- don't kid yourselves. If opened under the wrong circumstances (approval of evil, compromise, etc.) that school will have no fruit and it would be better that it not exist.
It's a diabolical deception that A) the ends can justify the means and/or B) that ANY GOOD will come from compromising with evil.
We are not promised an easy life on this earth. Homeschool might cost some families dearly. But how much are your childrens' souls worth anyhow? I'd say an infinite price! Therefore whatever we have to suffer to save their souls, is a small price to pay.
It all depends on what you think eternal salvation is worth! For some people, it's not worth giving up an annual summer vacation. For others, it's not worth giving up a "normal" middle class lifestyle. But each parent bears responsibility for their choices. God will judge you on your priorities, how you raised the children He created and entrusted you with.