CHICAGO (WBBM NEWSRADIO/AP) -- Northwestern University said it is not going to take stimulus funding that the federal government is awarding to some schools in response to the coronavirus pandemic.
It was reported two weeks ago that Northwestern would receive more than $8.5 million from the U.S. Department of Education as part of the initial funding rollout of stimulus cash to be distributed to colleges, which was announced April 9 by Education Secretary Betsy DeVos.
But Tuesday, Northwestern issued a statement to WBBM Newsradio saying, "after careful consideration, Northwestern University determined we are unable to accept the requirements and evolving guidance regarding the CARES Act. Therefore, the University has decided not to apply for or receive the funds allocated to us."
The federal funds were to be appropriated through the Coronavirus Aid, Relief and Economic Security Act, or CARES Act. The $2.2 trillion CARES Act offers $14 billion to the nation’s colleges and universities. Schools were allotted varying sums based on their size and the number of students they teach from poorer backgrounds.
The higher education funding was meant to help colleges and students facing financial losses triggered by the pandemic. If colleges accept the funding, they’re required to spend at least half on direct grants for students.
Northwestern University declined the funding after determining it couldn’t accept the act’s requirements and "evolving guidance.”
The university’s announcement follows similar decisions made by officials at Harvard, Princeton, Stanford, Yale, Duke universities and the University of Pennsylvania.
The decisions of the universities not accepting CARES Act funds came after President Donald Trump criticized the availability of the funds to Harvard, which he said "shouldn’t be taking” its share because it has deep financial reserves and has a nearly $40 billion endowment. Education Secretary Betsy DeVos added that other rich schools should reject the funding, contending affluent schools do not primarily serve low-income students.
Northwestern’s endowment was about $11.1 billion in fiscal year 2019, making it the 12th largest in the nation. There were about 20,000 undergraduate and graduate student enrolled in the fall 2019, according the university.