Harvard blasts 'inaccurate' Trump and insists it will use $8.6million stimulus money to help students after president demanded they send it back

'President Trump is right that it would not have been appropriate for our institution to receive funds that were designated for struggling small businesses'

Harvard says it did not receive aid from a congressional relief fund created for small businesses amid the coronavirus pandemic, after Donald Trump alleged the university took money "meant for workers".

In a statement posted to Twitter, the university wrote: “Harvard did not apply for, nor has it received any funds through the US Small Business Administration’s Paycheck Protection Program (PPP) for small businesses. Reports saying otherwise are inaccurate.”

The clarification followed comments from the president at a White House press briefing on Tuesday, in which he slammed the university over reports it received $8.6m in relief from the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Mr Trump claimed Harvard was “going to pay back the money” and said “they shouldn’t be taking it” while adding that the university has one of the largest endowments “in the country — maybe in the world”.

“They have to pay it back, I don’t like it” he said. “This is meant for workers — this isn’t meant for one of the richest institutions.”

But the university did not receive funding from the paycheck protection programme, or other components of the CARES Act designed specifically for American workers. Rather, Harvard was the recipient of aid allocated under the CARES Act Higher Education Emergency Relief Fund along with many other US schools.

“President Trump is right that it would not have been appropriate for our institution to receive funds that were designated for struggling small businesses,” the university said in the statement, adding: “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 refuted the notion it would return the reported $8.6m federal stimulus check, instead saying the money would allow the university to continue providing critical financial assistance during the pandemic, “including assistance with travel, providing direct aid for living expenses to those with need, and supporting students’ transition to online education”.

Mr Trump continued to attack the school after the press conference, saying “Harvard should back the money now” in a tweet on Tuesday night.

He added: “Their whole ‘endowment’ system should be looked at!”

The historic $2.2trn congressional relief package allocated funding through a variety of different measures for small businesses, major corporations, colleges and universities, as well as direct payments of $1,200 to Americans taxpayers with incomes of $75,000 or less.

The package has stirred controversy over reports it was giving immediate financial relief to big businesses with ties to the administration and providing aid to millionaires in the form of windfall tax breaks.