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Sen. Josh Hawley, R-Mo., announced a bill this week that would prohibit universities from receiving millions in coronavirus relief if they have an endowment larger than $10 billion, amid the controversy surrounding wealthy universities that were deemed eligible for the aid.

“Universities with massive endowments should not be getting taxpayer money unless they spend some money out of their own pockets to actually help their students,” Hawley said in a statement. “This is common sense. Relief funds were intended for schools that need it, not wealthy universities that sit on huge endowments. It’s greed, plain and simple, and it’s wrong.”

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Sens. Martha McSally, R-Ariz., Marco Rubio, R-Fla., and Marsha Blackburn, R-Tenn., co-sponsored Hawley’s legislation.

Under the proposal, universities with more than $10 billion in endowments would have to spend 10 times the amount appropriated to them according to the formula in the coronavirus stimulus package, also known as CARES Act, to be eligible for federal relief funds. The university would also have to demonstrate it spent the money on the same uses of funds required by the CARES Act, including emergency financial aid grants to students to cover costs like food, housing, health care and child care, and costs related to the disruption to the delivery of instruction during the coronavirus pandemic.

Reps. Jim Jordan, R-Ohio, and Ben Cline, R-Va., are also introducing companion legislation to Hawley’s bill in the House of Representatives.

“This bill shouldn’t be controversial or partisan. If universities have large endowments, they should spend some of that endowment on their students first, before seeking a federal bailout,” Jordan said in a statement. “This legislation ensures that large universities are held accountable to taxpayers in the future, while at the same time directing funds to those actually in need. I’m proud to stand behind this important legislation with Senator Hawley and Congressman Cline.”

“Phase 3” of the coronavirus stimulus package, which passed in late March, included the Higher Education Emergency Relief Fund which, in total, provided more than $14 billion in aid for colleges and universities. The law allocated a certain amount of funds to all colleges that participate in federal student aid programs, through a funding formula based on the number of students receiving federal financial aid through Pell Grants and on overall institutional student enrollment.

The rules of the program direct that 50 percent of the funds be used as direct financial-assistance grants to students with the remaining money used to cover costs incurred by the college or university related to the COVID-19 pandemic.

According to data from the Department of Education, even schools with the largest endowments were eligible to receive millions of dollars under the program. In order to access the funds, all institutions were required to sign and return a “Certificate of Funding and Agreement.”

The legislation comes after Education Secretary Betsy DeVos last week argued that while the bill technically makes funds available to all universities and colleges, no matter their financial situation, those schools with large endowments should not apply for the aid and Congress should change the law.

"Wealthy institutions that do not primarily serve low-income students do not need or deserve additional taxpayer funds. This is common sense," DeVos said. "Schools with large endowments should not apply for funds so more can be given to students who need support the most. It's also important for Congress to change the law to make sure no more taxpayer funds go to elite, wealthy institutions."

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The controversy began when Harvard University came under fire for seeking millions in coronavirus relief, before declining the funds in the face of political pressure.

Harvard University, according to 2019 data, has the nation's largest endowment valuing nearly $40 billion. The university had vowed to give all $8.6 million of federal funding to students “facing urgent financial needs” before declining the funding entirely under pressure from President Trump.

But other universities with similarly large endowments were also eligible for the funds.

Yale University, which has the second-largest endowment of nearly $30 billion, said that it would not accept the $6.9 million available to the university, and Stanford University, which has the third-largest endowment of nearly $27 billion, followed suit, asking that the Department of Education rescind its application for $7.3 million in coronavirus aid.

Princeton University, which has an endowment of $25 billion, also said that they would not accept the millions of dollars in assistance, and noted that they “did not request these funds” to begin with.

Meanwhile, the University of Notre Dame, which has an endowment valuing $11 billion, last week said they had not yet applied for the funding, and if they did, the university would “use it exclusively for eligible students whose families were hit hardest by unemployment or otherwise upended by the coronavirus."

The school is eligible for a total of $5.7 million.

This week, Sen. Mike Braun, R-Ind., penned a letter to the president of Notre Dame urging the university to forgo the stimulus money “so it can be redistributed to other schools that have an acute need for these emergency financial aid funds. In this way, we can help even more students who are currently facing financial hardships due to this crisis.”