Uhm are they allowed to pick sides?

No, more like they're allowed to side with the establishment.

why is this reported? It is clearly news and is good information to have when voting

The candidate who was the first lady of Arkansas, the first lady of the United States, the senator from New York, the secretary of state and the one being pushed by the establishment Democrats to become president is the establishment candidate, not the independent socialist congressman from Vermont who lost elections with a 1% voting rate and has received $0 from super PACs

He's not being pushed by democrats because he's not an establishment democrat, and yes he did criticize the establishment throughout his career, thank you for proving my point.

OT: are they allowed to endorse when they get federal funding?

But I'm guessing they can't donate because that would be taxpayer money?

If they do donate or campaign on her behalf it'll have to be from donations received by them.

Don't expect much other than notoriety out of this endorsement

I wouldn't have taken sides TBQH. No need for them to. If I like both candidates, then why pick a side when you don't have to.