Following a contentious debate over their funding, some universities are now turning down COVID relief funds. Specifically, they are returning money from the CARES act, which was partly allocated to universities. Public outcry began after some very wealthy schools like Harvard and Princeton received the money.
In a statement, Harvard explained their side of the situation.
“Like most colleges and universities, Harvard has been allocated funds as part of the CARES Act Higher Education Emergency Relief Fund. Harvard did not apply for this support, nor has it requested, received or accessed these funds.”
Earlier this week, President Donald Trump stated he “knew” Harvard would be returning the money from the CARES Act. Harvard quickly countered, saying that they had no intention of returning the money. The administration explained that it would be using the funds to help students with tuition. However, public outcry was sharp.
Harvard is the recipient of the largest endowment of any university in the US. Many see the university’s $40 billion endowment as extreme, given the already high tuition costs. This sparked debate as to whether it would be fair for such a wealthy university to accept federal aid.
Adding to the confusion, President Trump seemed to confuse the education funds with the PPP.
The Paycheck Protection Program, which was also part of the CARES Act, was set up to help small businesses. Businesses are in desperate need of finance advice and government funds following weeks of mandated closures. The PPP was supposed to only be available to small businesses, but there were exceptions. For example, restaurants and hotels could use the funds.
This led to some very large companies, like Ruth’s Chris Steakhouse, drawing down millions from the fund. Meanwhile, many small businesses across the US were unable to file for the loans before the funds dried up.
This has led to widespread outrage against large companies essentially tapping into “free money,” all at the expense of the small businesses that form the backbone of the economy.
While COVID has helped outline inequality in the US, it’s not the reason for these issues. It’s simply revealing the divisions in American society.
While Harvard made the right call in returning the funds, this episode is troubling. Why are some universities comfortably sailing through this crisis while others struggle?
America is a divided nation. Now, it seems, most of the country is becoming uncomfortably aware of this.
