Harvard University, backed by a $40 billion endowment, is facing criticism for taking in nearly $9 million from the coronavirus relief package.
All of the money is helping Harvard students with financial assistance, but some politicians are urging the Cambridge university to return the money to the federal government.
Harvard “now adds insult to injury by siphoning millions in taxpayer dollars away from desperate small businesses and workers,” U.S. Senate candidate Kevin O’Connor said in a statement on Monday.
The Republican is urging Harvard to “reject these funds so they can help people that actually need assistance to survive and have no other recourse.”
A spokesman for the U.S. Department of Education said in a statement that Secretary Betsy DeVos “shares the concern that sending millions to schools with significant endowments is a poor use of taxpayer money.”
“In her letter to college and university presidents, Secretary DeVos asked them to determine if their institutions actually need the money and, if not, to send unneeded CARES Act funds to schools in need in their state or region,” the spokesman said.
When asked about Harvard and major institutions receiving money from the CARES Act, President Trump on Monday said, “We’ll look at individual things, and some people will have to return it if we think it’s inappropriate … . If somebody got something that we think is inappropriate, we’ll get it back.”
Within the $2 trillion CARES Act, Congress set aside $14 billion in the Higher Education Emergency Relief Fund to address student needs and pandemic impacts on colleges.
“By federal formula laid out in the CARES Act, Harvard was allocated $8.6 million, with 50% of those funds to be reserved for grants to students,” a Harvard spokesman said in a statement. “Harvard is actually allocating 100% of the funds to financial assistance for students to meet their urgent needs in the face of this pandemic.
“Harvard will allocate the funds based on student financial need,” he said. “This financial assistance will be on top of the significant 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.”
The $14 billion in Higher Education Emergency Relief Funds is not part of the Payroll Protection Program for small businesses.
Shake Shack on Monday announced the restaurant chain is returning its PPP loan.
“Our people would benefit from a $10 million PPP loan but we’re fortunate to now have access to capital that others do not,” company officials said in a statement.
Last year, the Harvard endowment distributed $1.9 billion, contributing more than one-third of Harvard’s total operating revenue.
Harvard funds nearly two-thirds of its operation revenue from other sources, including federal and nonfederal research grants, student tuition and fees, and gifts from alumni.
