Published 15:18 IST, April 22nd 2020
Harvard says it will keep $8.6 mn relief fund after Trump vows 'money will be returned'
Harvard University has indicated towards using the $8.6 million grant to provide “financial assistance to students” after Donald Trump asked to return funds.
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In the latest development in the spiralling controversy over relief funds, Harvard University has indicated towards using the $8.6 million grant to provide “financial assistance to students”. This came moments after US President Donald Trump said in a press briefing at White House on April 22 that “Harvard's going to pay back the money” and insisted on using the funds for small businesses. However, Harvard has now clarified that it received the grant through CARES Act Higher Education Emergency Relief Fund which was a part of the $2.3 trillion stimulus bill passed at the end of March. Moreover, it was also included in the much larger fund that was allocated by the US government to help the small businesses amid coronavirus outbreak.
(4/5) Harvard has committed that 100% of these emergency higher education funds will be used to provide direct assistance to students facing urgent financial needs due to the COVID-19 pandemic.
— Harvard University (@Harvard) April 21, 2020
Harvard has one of the largest endowments anywhere in the country—and they will not keep money intended for small business loans, President @realDonaldTrump said. pic.twitter.com/uKhwzehuqf
— The White House (@WhiteHouse) April 21, 2020
Major firm returns the money
While more than $22 million US citizens have filed for unemployment after the government issued stay-at-home orders, the first major firm to reportedly return the business loan it had received from the White House was hamburger chain Shake Shack Inc. On April 21, US Treasury Secretary Steve Mnuchin said that “very clear guidelines” would be revealed in a bid to give more clarification over which companies are eligible for funds from the government.
Meanwhile, more aid for businesses is expected to come as the US Senate approved $484 billion relief for American businesses and hospitals that have been severely impacted by the coronavirus outbreak. The bill has now been sent to House of Representatives for final passage in the coming week.
15:27 IST, April 22nd 2020