The NYT details Elena Kagan's careful maneuvering on military recruitment while Dean of Harvard Law:

She said she abhorred the military’s refusal to allow openly gay men and lesbians to serve. And she was distressed that Harvard had been forced to make an exception to its policy of not providing assistance to employers that discriminated in hiring.

But barring the recruiters would come with a price, costing the university hundreds of millions of dollars in federal money.

The choices she made during that long-running episode are now under scrutiny as Ms. Kagan, now the solicitor general, has become a leading potential nominee to the Supreme Court. Her management of the recruiting dispute shows her to have been, above all, a pragmatist, asserting her principles but all the while following the law, so that Harvard never lost its financing. 

Republicans have indicated they'll bring up the issue if Kagan, as expected, is Obama's pick.