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Harvard College rejected calls from President Trump on Tuesday to return coronavirus reduction cash to the federal authorities, sustaining that the funds from the next training program underneath the CARES Act are getting used to supply direct help to college students dealing with monetary turmoil as a result of pandemic.
The president on Tuesday had accused Harvard of “taking” money from the federal government and claimed they’d be paying it again. This got here amid scrutiny of the Paycheck Safety Program underneath the CARES Act, which is supposed to assist small companies however has aided some massive corporations too.
Harvard drew specific scrutiny from the president given the large measurement of its endowment.
However a Harvard spokesman famous that the practically $9 million in taxpayer help it claimed didn’t come from the PPP program however relatively from the CARES Greater Training Emergency Aid Fund, which helped many universities and faculties.
“Harvard did not apply for, nor has it received any funds through the U.S. Small Business Administration’s Paycheck Protection Program for small businesses,” Harvard spokesman Jason Newton stated in a press release late Tuesday. “Reports saying otherwise are inaccurate. President Trump is right that it would not have been appropriate for our institution to receive funds that were designated for struggling small businesses.”
Newton added that “like most colleges and universities, Harvard has been allocated funds as part of the CARES Act Higher Education Emergency Relief Fund.”
The fund contains $14 billion in help for universities. The regulation allotted the funds to all faculties that take part in federal scholar help applications, by way of a funding components based mostly on the variety of college students at an establishment receiving federal monetary help by way of Pell Grants and on the general institutional scholar enrollment, in line with Harvard.
The allocation of the funding, in line with the CARES Act, directs that 50 % of the funds acquired by a university or college be used as direct monetary help grants to college students, with the remaining cash used to cowl prices incurred by the faculty or college associated to the COVID-19 pandemic.
“Harvard has committed that 100 percent of these emergency higher education funds will be used to provide direct assistance to students facing urgent financial needs due to the COVID-19 pandemic,” Newton stated.
He added: “This financial assistance will be on top of the support the University has already provided to students – including assistance with travel, providing direct aid for living expenses to those with need, and supporting students’ transition to online education.”
Harvard shouldn’t be the one college that acquired this kind of funding by way of the stimulus invoice. In keeping with The New York Times, the quantity Harvard acquired was consistent with different Ivy League faculties, with Cornell and Columbia Universities receiving extra, roughly $12.eight million every; Stanford receiving $7.three million; and Yale College receiving $6.eight million.
Different non-Ivy League non-public universities – together with Boston College, New York College, the College of Southern California, Liberty College and Bringham Younger College and extra – also received funding under the stimulus.
Of the roughly 6,600 present undergraduate college students at Harvard, 16 % are Pell Grant recipients. Harvard additionally famous that within the 2018-2019 tutorial 12 months alone, the college supplied greater than $200 million in scholarships for its undergraduates.
In a single day, the president fired again, tweeting: “Harvard should give back the money now. Their whole ‘endowment’ system should be looked at!”
As of June 2019, Harvard’s endowment was roughly $41 billion.
The back-and-forth started Tuesday night when Trump, throughout the day by day White Home Coronavirus Job Power briefing, stated Harvard was “going to pay back the money” and “shouldn’t be taking it.”
“I’m not going to mention any other names, but when I saw Harvard — they have one of the largest endowments anywhere in the country, maybe in the world. They’re going to pay back the money,” he stated.
Harvard additionally got here underneath fireplace final month for reportedly shedding its contract eating corridor staff. However then, after coming underneath stress, the varsity reportedly rehired the workers and different staff by way of the tip of the semester.
The college, although, in line with the Harvard Crimson, supplied not less than 30 days of paid go away with advantages to eating corridor and custodial workers whose amenities had closed.
In the meantime, the Senate handed a virtually $500 billion coronavirus “Phase 3.5” interim reduction invoice Tuesday that will replenish the Paycheck Safety Program, present hospitals one other $75 billion, and implement a nationwide virus testing program to facilitate the reopening of the economic system.
The PPP, which helps companies with underneath 500 staff get hold of loans that may cowl eight weeks of their payroll, advantages, hire and different bills, was created as a part of the $2.2 trillion CARES Act that handed final month. This system converts the small enterprise loans to grants and can be totally forgiven if 75 % of the mortgage is used to maintain staff on the payroll.
The brand new deal, which got here after days of delays pushed by Democrats’ calls for, would supply greater than $300 billion for the PPP, amongst different funding.
Fox Information’ Blake Burman, Vandana Rambaran and Gregg Re contributed to this report.