The state of Connecticut built and owns Rentschler Field (Office of Policy & Management), so it's not surprising that the General Assembly would have a hand in saying that UConn has to play their home games there rather than at other venues.
That said, I'm not surpised that Brandon is looking at getting this game moved to the Meadowlands. You'd be going from a stadium with barely 40,000 in capacity to one with over 82,000. With its location close to New York City, Michigan alums from Boston to Washington, DC could reasonably drive there to watch the game in person.
In the end, I suspect Brandon will try to work with UConn's AD to get the game moved, but if unable to do so, he'll honor the agreement that Bill Martin put in place when the Huskies agreed to be the opponent for the Michigan Stadium Rededication game.