U.S. Senator Joni Ernst (R-IA), known as the Senate’s leading foe of wasteful government spending, is signing onto legislation prohibiting universities with massive, multi-billion dollar endowments from receiving critical COVID-19 aid meant for those most in-need before spending their own money first on assistance for students.
“With small businesses and families across Iowa facing serious challenges and uncertainty during this crisis, it’s unconscionable that universities with multi-billion dollar endowments would take a dime of critical COVID-19 aid meant for those most in-need,” said Senator Joni Ernst. “These universities are sitting on billions—they should be using their own money first to help students before going to the taxpayer. Let’s make sure this aid is going to those who need it most.”
The CARES Act provided support for higher education institutions facing challenges amid COVID-19 through the Higher Education Emergency Relief Fund. The Use Your Endowment Act, introduced by Senator Josh Hawley (R-MO), would require universities with endowments over $10 billion to spend ten times the amount appropriated to them according to the formula in the CARES Act to be eligible for federal relief funds.