Trump and Harvard Clash Over US Government Grants: "Must Return" vs. "Support Students"

[Image source=AP Yonhap News]

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. President Donald Trump pressured Harvard University to return government aid provided as part of the economic stimulus package in response to the novel coronavirus disease (COVID-19). President Trump pointed out that the "rich school" received the funds, but Harvard countered that the aid would be used for students in financial need.

According to the New York Times (NYT) and others on the 21st (local time), President Trump said at a White House COVID-19 task force briefing, "Harvard probably has the largest endowment in this country, if not the world," and added, "Harvard should return the aid." The implication was that Harvard, with its large endowment, should not receive funds meant to support vulnerable groups such as small businesses. President Trump continued his offensive on Twitter, saying, "The Harvard endowment system itself needs to be reviewed."

Earlier, the U.S. Department of Education announced that Harvard was scheduled to receive about $8.6 million in aid under the $2.2 trillion economic stimulus package law enacted last month. The Department of Education stated that the total $14 billion in educational aid would be distributed to thousands of colleges, both public and private, based on student numbers and other factors. Among Ivy League schools, Cornell University and Columbia University each received $12.8 million, Stanford University received $7.3 million, and Yale University received $6.8 million. This raised questions about whether it was appropriate for "wealthy universities" to receive government aid.

Harvard stated in a press release immediately after President Trump's briefing that it would not return the $8.6 million in aid and planned to use the entire amount for emergency financial support for students. It also explained that although President Trump described the funds as loans received under the Paycheck Protection Program (PPP) for small business support, the aid was actually a grant under the higher education institutional aid category. Harvard spokesperson Jason Newton said, "President Trump's statement that it is inappropriate for a university to receive funds designed for small businesses is correct."

This is not the first controversy over federal small business aid. The famous hamburger chain Shake Shack received a $10 million PPP loan but decided to return it after controversy arose. Treasury Secretary Steven Mnuchin warned, "The purpose of this program is not for large companies that have access to capital," and cautioned that those who do not return the aid may face consequences.

This content was produced with the assistance of AI translation services.