Virginia Tech reversed a student board's decision to cut off funding to a campus group because it hosted a controversial speech by former conservative U.S. Treasurer Bay Buchanan.

The school's ruling earlier this week came a month after the student board voted to deny the group “Young Americans for Freedom” funding for rest of the school year last month after Buchanan, the sister of conservative pundit and onetime presidential candidate Pat Buchanan, spoke about illegal immigration. Officials at the Blacksburg, Va., university reversed the board’s decision, noting the cutoff of funds would cancel previously approved events.

“I find that there is sufficient cause to reverse the decision of the board,” Angela Simmons, assistant vice president for student affairs at Virginia Tech, said. "Specifically, I believe that [the Student Budget Board] misinterpreted the policy related to changes to previously approved requests.”

Lauren McCue, chairwoman of Virginia Tech’s Young Americans for Freedom Chapter, hailed the decision as a victory for free speech.

"The reinstatement of YAF's funds by the administration is a landmark decision in the history of Virginia Tech,” McCue said. "I am glad that I took a stand against the clearly ideological discrimination occurring against conservatives on my campus.”

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The student board's denial would have forced the group to cancel an already-scheduled speech by former GOP presidential candidate Herman Cain, as well as costing it all other aid for the rest of the year. Buchanan, who said her speech was well received, earlier blasted the student board's decision.

“It is an outrageous effort on the part of these students to control speech to determine what is said and how it’s said,” said Buchanan, who described the standing-room-only Oct. 28 event as featuring spirited debate by both sides. “It is a great right to be able to speak our mind and make our arguments passionately and listen to the other side."

The controversy began even before Buchanan got to the campus, when a flyer circulated by YAF touting her appearance and alluding to an "alien invasion" caught the attention of Latino groups on campus. The Latino Association of Student Organizations reacted angrily on its Facebook page.

“The combination of language and imagery is offensive, insensitive and a blatant act of disrespect towards the immigrant community and the Virginia Tech community at large,” read a statement published on the page.

The College Republicans sided with LASO on the flyer and created a new one, according to McCue.

Max Frischman, chairman of the Student Budget Board, did not respond to a FoxNews.com request for an interview. But the faculty advisor for the Budget Board, Steve Burrell, said in an e-mail that YAF pulled a bait and switch.

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“The board was extremely frustrated with the organization regarding the Bay Buchanan event since the written and verbal description of the event was very different from what was advertised as the event," Burrell said. "So the board unanimously voted to deny funding.”

“The combination of language and imagery is offensive, insensitive and a blatant act of disrespect towards the immigrant community and the Virginia Tech community at large,” read a statement published on the page.

In reversing the student board's decision, school officials took no position on the substance of Buchanan's remarks.

Kyle Rothenberg is a graduate of the Junior Reporter program at Fox News. Follow him on Twitter: @kylerothenberg