Harvard University Pressured To Return $8.6 Million Received From Coronavirus Relief Package

When Congress passed a bill approving a $2.2 trillion coronavirus relief package to stimulate businesses and entities that would be adversely impacted by the COVID-19 pandemic, they did not realize that a significant portion of funds appointed to higher education would also include distributions to wealthy Ivy League universities.

Harvard University received $8.6 million out of the $14 billion issued to colleges, universities and trade schools. The distribution of funds caused concern for smaller academic institutions that struggle with funding and usually don’t possess the same access to resources as the prestigious, elite schools.

Stanford University was the first Ivy League institution to return funds distributed through the relief package after the northern California school received $7.4 million.

After receiving criticism and pressure from President Donald Trump, Treasury Secretary Steven Mnuchin and Education Secretary Betsy DeVos, Harvard has decided to return the funds to aid other academic institutions that may face greater financial constraints amid the pandemic.

“If you determine that your institution’s students do not have significant financial need at this time, I would ask that you consider giving your allocation to those institutions within your state or region that might have significant need,” said DeVos in a letter to presidents of higher education institutions.

Although Harvard already secures a large endowment of $41 billion, the university initially considered allocating the funds to students experiencing financial hardship.

But, Senate Republicans pointed out that Harvard could use funds from its billion dollar endowment to mitigate financial challenges. Eventually, Harvard would succumb to the public scrutiny.

“We have previously said that Harvard, like other institutions, will face significant financial challenges due to the pandemic and economic crisis it has caused,” said Harvard officials in a statement. “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 the use of the [funds], Harvard has decided not to seek or accept the funds allocated to it by statute.”

Mandates and orders formulate everyday as the circumstances surrounding the COVID-19 pandemic evolves. As a result, it is not unusual for errors to be made or sudden changes to develop as this is the first time in recent history that the U.S. has experienced a national level emergency that has impacted personal health, business and social dynamics, simultaneously.

With that said, Americans can expect a lot of ratifications as Congress race to figure out how to successfully stop the economic hemorrhaging, while navigating the risk to health.