Name: Trump calls on Harvard University to return $8.6 million coronavirus relief funding
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Trump calls on Harvard University to return $8.6 million coronavirus relief funding

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Harvard University has rejected Donald Trump's demand to repay almost $8.6 million from a US government Covid-19 loan scheme amid growing controversy over how the funds have been allocated.The US president highlighted that Harvard, America's richest university, has an ample endowment - worth nearly $41 billion - and suggested it should return the government grant.“Harvard’s going to pay back the money and they shouldn't be taking it,” Mr Trump said at a White House briefing, adding, “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.”Harvard received the money through a higher education relief fund that formed part of thend signed into law by Mr Trump last month.The stimulus bill aalso included a Paycheck Protection Program (PPP) fund to help struggling small businesses. The PPP has been riddled with controversy since it emerged that several large companies had availed themselves of the funds while many small enterprises are still waiting to see any cash.Why is Harvard getting a $8.6 million stimulus when they have a $40 billion endowment?The President is right to demand the money back!In fact, every penny that isn’t going to students or businesses forced to shut down should be returned. — Rep. Jim Jordan (@Jim_Jordan)In response to the backlash, the burger chain Shake Shack pledged to return the $10 million it had received from the fund. Other large companies have been pressured to follow suit.The US president appeared to confuse the grant given to Harvard with the government loans meant for small businesses as he railed against the prestigious university on Tuesday,Shortly after Mr Trump's comments, Harvard issued a statement saying it planned to direct all of the funding "to financial assistance to students, and will not be using any of the funds to cover institutional costs."It also stressed that the money it had received was separate to the small business fund. “Harvard did not apply for, nor has it received any funds through the US Small Business Administration’s Paycheck Protection Program for small businesses,” a spokesman for the university said.&nbsp;(5/5) 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 University (@Harvard)“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.”The US Department of Education has said the formula for to universities was set by Congress and cannot be changed.The $14 billion fund for higher education was divided up based on the size and income level of each institution's student population. The money each university receives is supposed to be split between emergency cash grants for students and funding to replace the revenue&nbsp;universities&nbsp;have lost as a result of the coronavirus outbreak.Harvard received $8.6 million, while Brown University received $4.8 million and Yale University received $6.8 million. The University of Southern California received $19.2 million, but the highest grant went to Arizona State University, which was given $ 63.5 million.However Mr Trump doubled down on his remarks late on Tuesday night, tweeting: "Harvard should give back the money now. Their whole "endowment" system should be looked at", but he did not give further details.Following the criticism it received online, Harvard said it would contribute all of its stimulus grant directly to students “facing urgent financial needs due to the Covid-19 pandemic” and would not use any for its own needs.“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,” a spokesman said.The Paycheck Protection Program, a $349 billion relief fund for small businesses, has been drained in less than two weeks.Small businesses have been left in the dust, but somehow Shake Shack managed to secure $10 million and Ruth’s Chris steakhouses got a whopping $20 million.— Robert Reich (@RBReich)Meanwhile pressure continued to build on the Trump administration and the large corporations who have taken money from the PPP. With small businesses being forced to close and 22 million Americans registered as unemployed, public pressure is rising for taxpayer relief programmes to reach those most in need.Mr Trump's Treasury Secretary Steve Mnuchin said "very clear guidelines" would be released to clarify which companies are eligible for the stimulus funds."The intent [of the PPP] was not for companies that have access to plenty of liquidity and other sources," he said. "To the extent these companies didn't understand this and they repay the loans, that will be OK. And, if not, there will be potentially other consequences," he warned.More aid may be coming soon. The Senate approved a further $484 billion in funding for businesses and hospitals hit by the coronavirus pandemic on Tuesday which has now gone to the House of Representatives to review.Related TopicsAdvertisementRelated TopicsWe rely on advertising to help fund our award-winning journalism.We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future.Thank you for your support.Need help?Visit ourpage.Close

Harvard University has rejected Donald Trump's demand to repay almost $8.6 million from a US government Covid-19 loan scheme amid growing controversy over how the funds have been allocated.The US president highlighted that Harvard, America's richest university, has an ample endowment - worth nearly $41 billion - and suggested it should return the government grant.“Harvard’s going to pay back the money and they shouldn't be taking it,” Mr Trump said at a White House briefing, adding, “They have one of the largest endowments anywhere in the country, maybe in the world, I guess, and they’re...

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Trump calls on Harvard University to return $8.6 million coronavirus relief funding

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