Harvard University has rescinded the $9 million it received from the CARES Act Higher Education Emergency Relief Fund. The move comes just one day after President Trump told the school to “pay it back.”
“The prestigious university had received nearly $9 million in federal funds through one of the government’s relief programs doled out through the Department of Education, but the allocation drew backlash from Trump,” reports Fox News. “Harvard has denied ever applying for or receiving any funds through (Paycheck Protection Program) PPP, and has clarified that the type of funding it received was given to most other U.S. colleges and universities, to be used for direct financial assistance to students and to cover costs incurred by the schools due to the coronavirus.”
On Tuesday, President Trump accused Harvard of receiving money from the Paycheck Protection Program (PPP) and ordered the school to pay it back.
“Harvard is going to pay back the money. They shouldn’t be taking it,” Trump said Tuesday. “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.”
In a statement shortly thereafter, Harvard denied taking funds from the Paycheck Protection Program.
“Like most colleges and universities, Harvard has been allocated funds as part of the CARES Act Higher Education Emergency Relief Fund,” the university said.
When the lockdowns began in March, Harvard gave its employees 30 days with paid leave and benefits. Harvard then extended its policy to May due to its $40 billion endowment.
“We have previously said that Harvard, like other institutions, will face significant financial challenges due to the pandemic and economic crisis it has caused,” Harvard spokesman Jason Newton said in a statement Wednesday on the school’s decision to return the funds. “We are also concerned, however, that the intense focus by politicians and others on Harvard in connection with this program may undermine participation in a relief effort that Congress created and the President signed into law for the purpose of helping students and institutions whose financial challenges in the coming months may be most severe.”
“As a result of this, and the evolving guidance being issued around use of the Higher Education Emergency Relief Fund, Harvard has decided not to seek or accept the funds allocated to it by statute,” he added.
Both Stanford University and Princeton University announced on Wednesday that the schools will not be receiving any of the $14 billion allocated in the Higher Education Emergency Relief Fund.
The PPP has come under severe fire in recent days for its alleged mismanagement due to large restaurant chains and big businesses receiving funds that were meant for small businesses. Though the SBA loan program was limited to companies with fewer than 500 employees, exceptions were granted to restaurants and hotel chains that have fewer than 500 employees per location, which allowed companies like Ruth’s Chris Steakhouse and Shake Shack to receive $10 million a piece. After enough backlash, Shake Shack rescinded the money.
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