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Harvard College rejected calls from President Trump on Tuesday to return coronavirus aid cash to the federal authorities, sustaining that the funds from the next training program beneath the CARES Act are getting used to offer direct help to college students dealing with monetary turmoil because of the 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 beneath the CARES Act, which is supposed to assist small companies however has aided some giant corporations too.
Harvard drew specific scrutiny from the president given the large dimension 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 fairly from the CARES Larger Training Emergency Reduction Fund, which helped many universities and schools.
“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 consists of $14 billion in help for universities. The legislation allotted the funds to all schools that take part in federal scholar help applications, by a funding method based mostly on the variety of college students at an establishment receiving federal monetary help by Pell Grants and on the general institutional scholar enrollment, in accordance with Harvard.
The allocation of the funding, in accordance with the CARES Act, directs that 50 p.c of the funds obtained 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 school 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 isn’t the one college that obtained the sort of funding by the stimulus invoice. Based on The New York Times, the quantity Harvard obtained was in keeping 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 personal 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 p.c are Pell Grant recipients. Harvard additionally famous that within the 2018-2019 educational yr alone, the college offered 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, in the course of the each day White Home Coronavirus Process 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 beneath fireplace final month for reportedly shedding its contract eating corridor employees. However then, after coming beneath strain, the college reportedly rehired the staff and different employees by the top of the semester.
The college, although, in accordance with the Harvard Crimson, offered at the least 30 days of paid depart with advantages to eating corridor and custodial workers whose services had closed.
In the meantime, the Senate handed an almost $500 billion coronavirus “Phase 3.5” interim aid invoice Tuesday that may 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 beneath 500 workers 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 could be totally forgiven if 75 p.c of the mortgage is used to maintain workers on the payroll.
The brand new deal, which got here after days of delays pushed by Democrats’ calls for, would offer greater than $300 billion for the PPP, amongst different funding.
Fox Information’ Blake Burman, Vandana Rambaran and Gregg Re contributed to this report.