Trump vs. Harvard: White House Clashes With College Over Coronavirus Relief Money

Harvard University denies President Trump’s accusation that it received $9 million from the fund set up to help small businesses keep their employees on the payroll in the face of coronavirus shutdowns, saying the money came from the funds allocated to colleges and universities under the $2.2 trillion COVID-19 relief package.

“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. Reports saying otherwise are inaccurate,” Harvard tweeted shortly after Trump made his accusation Tuesday.

Trump’s remarks triggered an angry backlash against Harvard, which has a nearly $41 billion endowment. Many angry tweets called the university unethical for applying for the funds and called on the school to dip into its endowment if it wants to help students. Others shamed the university for not discounting tuition after sending students home to learn online.

The $349 billion SBA program ran out of money last Thursday, less than two weeks after banks began accepting applications. Much of the money went to large hotel and restaurant chains, shutting out the small and midsize businesses it was supposed to help. The Senate voted Tuesday to provide $310 billion more to the fund and Treasury Secretary Steven Mnuchin said the administration would try to recover the funds awarded improperly.

The CARES Act allocated $12.56 billion to higher education. The Department of Education distributed the funds based on a formula, an email to The Fix said.

“In her letter to college and university presidents, Secretary [Betsy] 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,” education spokeswoman Angela Morabito said in the email. “We hope that the presidents of these schools will take the secretary’s advice and direct CARES Act funds to students in need, no matter where those students are enrolled.”

Trump made the accusation against Harvard following a question about the improperly awarded paycheck protection funds.

“Harvard’s going to pay back the money,” Trump said at the daily White House press briefing. “They shouldn’t be taking it. … When I saw Harvard, they have one of the largest endowments anywhere in the country, maybe in the world, I guess. And they’re going to pay back that money.”

He added: “Harvard should pay that money back. I want Harvard to pay the money back, OK. And if they won’t do that, then we won’t do something else. … This is meant for workers. This isn’t meant for one of the richest institutions, far beyond schools, in the world.”

Harvard said it planned to use the emergency funds to provide “direct assistance to students facing urgent financial needs.”