Just in case you don't know, this is Obama's idea. I'm guessing Verily knew that, hence the poor attempt to defend it. If it's wrong for the Fed to withhold highway funds to force states to obey (and it is wrong to do that), then it's really really wrong to withhold funds from schools to force states to obey.
I'm not making a "poor attempt to defend it", I do genuinely believe that it is a good idea. I don't think it is authoritarian at all, and I don't buy your emotive appeal otherwise. Centralization of requirements is not an authoritarian position, it is a pragmatic one. ("OMG, they're forcing us." is a childish argument, and you know it.)
Volunteer work is not "slavery", and I laugh in your face for trying to call it such.