Harvard University, already supported by a massive $41 billion endowment, is getting nearly $9 million in taxpayer aid from the federal Coronavirus Aid, Relief and Economic Security Act, the U.S. Department of Education announced.
Under the terms of the payout from CARES Higher Education Emergency Relief Fund , at least half of the $8.7 million earmarked for Harvard must be reserved for emergency financial grants to students, according to the Harvard Crimson, which was the first to report the aid.
But at least some of that money which could be used to cover tuition payments and course materials would also end up in Harvard coffers. The funds would also likely be spent on extra technology, food and housing costs that students incurred amid disruptions in their education due to COVID-19, according to CARES provisions.
Though Education Secretary Betsy DeVos hailed the program in a statement earlier this month, a spokesperson later told Newsweek that DeVos shares the concern that sending millions to schools with significant endowments is a poor use of taxpayer money .
The money is part of nearly $14 billion in the $2 trillion CARES package allocated for higher education institutions and students as colleges and universities across the nation have shut classrooms and launched online learning.
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Aid amounts for universities and colleges were based on a formula set by Congress weighted heavily in favor of institutions with significant proportions of low-income students on federally funded Pell grants . The formula apparently does not take into account the financial need of an institution.
Even with the aid, several smaller, financially struggling colleges may be forced to close permanently , Bloomberg reported.
Institutions like Harvard might have to dip into their endowments a pool of assets and investments or step up fundraising to cover costs. Harvards endowment is the largest of any university in the world, but is at risk of losing value amid the economic collapse caused by the COVID-19 crisis.
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In addition to its endowment, Harvard ended the 2019 fiscal year with a nearly $300 million operating surplus , according to Newsweek.
Harvard has already announced salary and hiring freezes, cost cuts, and deferred capital projects as the COVID-19 crisis depresses its income, the Crimson reported. Harvard came under fire in March for firing subcontracted cafeteria workers and offering no unemployment benefits, according to the Washington Free Beacon. It also gave students in university housing just days to get out.
The university sold a $1.1 billion bond for additional funds early this month to take advantage of plunging interest rates, Bloomberg reported.
DeVos sent a letter to colleges and universities, asking officials to forward their aid to other, needier institutions if they could get by without the funds, her spokesperson told Newsweek. But a Harvard representative indicated to Newsweek that its federal aid isnt going anywhere else, but will be used to address substantial costs incurred by the university due to COVID-19.
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The top 20 universities getting the largest amounts of CARES funds are public institutions. Arizona State University is set to receive the biggest grant: $63 million .
Among private Ivy League Universities, Columbia University and Cornell University are set to each receive $12.8 million . Yale will get $7 million , and Princeton University expects some $2.5 million, according to the Department of Educations tally. The departments list is the first information Americans have about where their federal stimulus money is going.
Critics on Twitter were furious that such a wealthy institution would receive a publicly funded windfall as an army of unemployed Americans are struggling to meet expenses for housing and food.
Excuse me?https://t.co/7nT10AFiUi pic.twitter.com/SG12zWrypl
OceanGirl (@Salacia_sea) April 19, 2020","type":"rich","meta":{"author":"OceanGirl","author_url":"https://twitter.com/Salacia_sea","cache_age":86400,"description":"Excuse me?https://t.co/7nT10AFiUi pic.twitter.com/SG12zWrypl OceanGirl (@Salacia_sea) April 19, 2020\n\n","options":{"_hide_media":{"label":"Hide photos, videos, and cards","value":false},"_hide_thread":{"label":"Hide previous Tweet in conversation thread","value":true},"_theme":{"value":"","values":{"dark":"Use dark theme"}}},"provider_name":"Twitter","title":"OceanGirl on 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Crimson","slug":"the-harvard-crimson","links":{"relativeLink":"topic/the-harvard-crimson","permalink":"https://action.news/topic/the-harvard-crimson","mobileWebLink":"https://action.news/topic/the-harvard-crimson"},"relegenceId":3560055,"url":"https://action.news/topic/the-harvard-crimson"},{"name":"Cares","slug":"cares","links":{"relativeLink":"topic/cares","permalink":"https://action.news/topic/cares","mobileWebLink":"https://action.news/topic/cares"},"url":"https://action.news/topic/cares"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false}">Excuse me?https://t.co/7nT10AFiUi pic.twitter.com/SG12zWrypl
OceanGirl (@Salacia_sea) April 19, 2020
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Harvard has an endowment valued at $40.9 billion as of 2019. The largest endowment in the world. Along with Harvard's pension assets, working capital, and non-cash gifts, there is no freaking way Harvard needs $9 million in aid from the Federal government.
China Did This (@FeistyMonk) April 16, 2020","type":"rich","meta":{"author":"China Did This","author_url":"https://twitter.com/FeistyMonk","cache_age":86400,"description":"Harvard has an endowment valued at $40.9 billion as of 2019. The largest endowment in the world. Along with Harvard's pension assets, working capital, and non-cash gifts, there is no freaking way Harvard needs $9 million in aid from the Federal government. China Did This (@FeistyMonk) April 16, 2020\n\n","options":{"_hide_thread":{"label":"Hide previous Tweet in conversation thread","value":true},"_theme":{"value":"","values":{"dark":"Use dark theme"}}},"provider_name":"Twitter","title":"China Did This on 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Crimson","slug":"the-harvard-crimson","links":{"relativeLink":"topic/the-harvard-crimson","permalink":"https://action.news/topic/the-harvard-crimson","mobileWebLink":"https://action.news/topic/the-harvard-crimson"},"relegenceId":3560055,"url":"https://action.news/topic/the-harvard-crimson"},{"name":"Cares","slug":"cares","links":{"relativeLink":"topic/cares","permalink":"https://action.news/topic/cares","mobileWebLink":"https://action.news/topic/cares"},"url":"https://action.news/topic/cares"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false}">Harvard has an endowment valued at $40.9 billion as of 2019. The largest endowment in the world. Along with Harvard's pension assets, working capital, and non-cash gifts, there is no freaking way Harvard needs $9 million in aid from the Federal government.
China Did This (@FeistyMonk) April 16, 2020
Great! Meanwhile, my kids aren't eating today, I haven't paid my electric or water, and my phones gonna get cut off. Thanks, gov't!
Lisa H Turnage (@LisaTurnage12) April 19, 2020","type":"rich","meta":{"author":"Lisa H Turnage","author_url":"https://twitter.com/LisaTurnage12","cache_age":86400,"description":"Great! Meanwhile, my kids aren't eating today, I haven't paid my electric or water, and my phones gonna get cut off. Thanks, gov't! 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Meanwhile, my kids aren't eating today, I haven't paid my electric or water, and my phones gonna get cut off. Thanks, gov't!
Lisa H Turnage (@LisaTurnage12) April 19, 2020
I am an alum and I am furious. This is disgusting given our $41 fucking billion dollar endowment.
Demagogue Run Amok Alert (@DemagogueWatch) April 19, 2020","type":"rich","meta":{"author":"Demagogue Run Amok Alert","author_url":"https://twitter.com/DemagogueWatch","cache_age":86400,"description":"I am an alum and I am furious. This is disgusting given our $41 fucking billion dollar endowment. 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Crimson","slug":"the-harvard-crimson","links":{"relativeLink":"topic/the-harvard-crimson","permalink":"https://action.news/topic/the-harvard-crimson","mobileWebLink":"https://action.news/topic/the-harvard-crimson"},"relegenceId":3560055,"url":"https://action.news/topic/the-harvard-crimson"},{"name":"Cares","slug":"cares","links":{"relativeLink":"topic/cares","permalink":"https://action.news/topic/cares","mobileWebLink":"https://action.news/topic/cares"},"url":"https://action.news/topic/cares"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false}">I am an alum and I am furious. This is disgusting given our $41 fucking billion dollar endowment.
Demagogue Run Amok Alert (@DemagogueWatch) April 19, 2020
Because it's just so difficult for Harvard to survive on the mere $40 billion endowment they've racked up. So yeah, they really need that extra $9 mil from the government.
Just think of all the school children and homeless people that could be fed.
Because it's just so difficult for Harvard to survive on the mere $40 billion endowment they've racked up. So yeah, they really need that extra $9 mil from the government.
WeDem5SuperBowlBoyz (@JeffDuPas) April 19, 2020
Just think of all the school children and homeless people that could be fed.
Advertisement
How big is Harvard's endowment? It could probably give aid to the Government!!
AMC (@Truthbuster) April 19, 2020","type":"rich","meta":{"author":"AMC","author_url":"https://twitter.com/Truthbuster","cache_age":86400,"description":"How big is Harvard's endowment? It could probably give aid to the Government!! 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Crimson","slug":"the-harvard-crimson","links":{"relativeLink":"topic/the-harvard-crimson","permalink":"https://action.news/topic/the-harvard-crimson","mobileWebLink":"https://action.news/topic/the-harvard-crimson"},"relegenceId":3560055,"url":"https://action.news/topic/the-harvard-crimson"},{"name":"Cares","slug":"cares","links":{"relativeLink":"topic/cares","permalink":"https://action.news/topic/cares","mobileWebLink":"https://action.news/topic/cares"},"url":"https://action.news/topic/cares"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false}">How big is Harvard's endowment? It could probably give aid to the Government!!
AMC (@Truthbuster) April 19, 2020
Whew, the 41 Billion endowment is saved!
Hudson River Croc (@HudsonRiverCroc) April 15, 2020","type":"rich","meta":{"author":"Hudson River Croc","author_url":"https://twitter.com/HudsonRiverCroc","cache_age":86400,"description":"Whew, the 41 Billion endowment is saved! 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Crimson","slug":"the-harvard-crimson","links":{"relativeLink":"topic/the-harvard-crimson","permalink":"https://action.news/topic/the-harvard-crimson","mobileWebLink":"https://action.news/topic/the-harvard-crimson"},"relegenceId":3560055,"url":"https://action.news/topic/the-harvard-crimson"},{"name":"Cares","slug":"cares","links":{"relativeLink":"topic/cares","permalink":"https://action.news/topic/cares","mobileWebLink":"https://action.news/topic/cares"},"url":"https://action.news/topic/cares"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false}">Whew, the 41 Billion endowment is saved!
Hudson River Croc (@HudsonRiverCroc) April 15, 2020
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Harvard, the hedge fund with a small college attached.
Stay home & wash your hands (@V1Tervitused) April 19, 2020","type":"rich","meta":{"author":"Stay home & wash your hands","author_url":"https://twitter.com/V1Tervitused","cache_age":86400,"description":"Harvard, the hedge fund with a small college attached. 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Stay home & wash your hands (@V1Tervitused) April 19, 2020
Thanks, so the rich get richer and poor get poorer. Message received.
Marie G AML-BSA: cutie pie Jon Karl (@mkg_sd) April 19, 2020","type":"rich","meta":{"author":"Marie G AML-BSA: cutie pie Jon Karl","author_url":"https://twitter.com/mkg_sd","cache_age":86400,"description":"Thanks, so the rich get richer and poor get poorer. Message received. 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Crimson","slug":"the-harvard-crimson","links":{"relativeLink":"topic/the-harvard-crimson","permalink":"https://action.news/topic/the-harvard-crimson","mobileWebLink":"https://action.news/topic/the-harvard-crimson"},"relegenceId":3560055,"url":"https://action.news/topic/the-harvard-crimson"},{"name":"Cares","slug":"cares","links":{"relativeLink":"topic/cares","permalink":"https://action.news/topic/cares","mobileWebLink":"https://action.news/topic/cares"},"url":"https://action.news/topic/cares"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false}">Thanks, so the rich get richer and poor get poorer. Message received.
Marie G AML-BSA: cutie pie Jon Karl (@mkg_sd) April 19, 2020
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