Harvard to Keep $8.6M Stimulus Grant Even After Trump Orders to Return It
Harvard recently said that it is planning to keep the stimulus grant amounting to $8.6 million it received as a part of the incentive package "to blunt the economic impact of the COVID-19 lockdown, opposing U.S. President Donald Trump's order that the university should return the money.
Trump, on Tuesday, during a press briefing, pointed to the ample donations of the institution, which specifically worth almost $41 million as the reason why it should return the money it received. He said, the university "is going to bay back the money," and should not take it.
Harvard, via the statement it issued moment following the President's briefing said, it was planning to direct the entire amount of the funds for the students' financial assistance. More so, Harvard said it would not use any of the funds to cover the institutional expenses.
Harvard's Claim
Also, according to the university, it received the stimulus grant through the educational relief program, which was a portion of the $2.3 trillion stimulus that was passed in March-end, which included a considerably large amount allotted for assistance to small businesses.
That said fund has been a constant main topic of discussions which include an outcry on the revelations that bigger firms received bailout money while many other small businesses, among most affected by the COVID-19 crisis, are reportedly still waiting for support.
Moreover, U.S. states comprehensive stay-at-home guidelines to slow or even totally stop the spread of the highly infectious COVID-19. Relatively, establishments have closed, prompting around 22 million Americans to file for unemployment.
Incidentally, on Monday, Shake Shack, Inc., a hamburger chain announced, it would return the loan for small business it received from the government. It is the first major business to return loaned money. Then on Tuesday, Steve Mnuchin, the U.S. Treasury secretary said, those very clear procedures would be issued for the clarification of what enterprises are qualified for the stimulus funds.
This program's intent, the secretary said, was not for businesses with access to an abundance of liquidity, as well as the other sources. He added that to the degree, these businesses did not understand this, and they pay back the loans, "that will be okay." And for those who don't, Mnuchin continued that there would be "potentially other consequence."
Trump Demands Harvard to Return the Money
Earlier on, reports came out that President Trump on Tuesday demanded Harvard to return the $8.6-million grant it received as part of the stimulus package, also known as CARES Act. On his Twitter account, the President posted that after Harvard disobeyed his earlier order by saying it was planning to give the stimulus grant, it received even though it already reportedly has an ample $40.8-billion endowment.
Incidentally, it has also occurred that enterprises that have thousands of workers have also been awarded grants via the Paycheck Protection Program, which was supposed to infuse small companies with emergency loans amounting to $349 billion.
Other than financial assistance, according to reports, there will be more aid to come as the Senate just approved, more than $400 billion "in fresh relief for U.S. hospitals and private companies severely affected by this pandemic."
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