WH official says Trump believes K-12 private schools should give back PPP funds

President Trump has reportedly said he believes elite K-12 private schools should return federal funds distributed under an emergency small business loan program amid the coronavirus pandemic, according to a White House official, Politico reported.

The comment from the White House official came after Treasury Secretary Steven Mnuchin tweeted Friday advising private schools “with significant endowments” to return funds received under the Paycheck Protection Program (PPP), a small business loan program created as part of the $2.2 trillion coronavirus stimulus package.

Under the program, small businesses would not have to repay a low-interest loan as long as the funds went to essential expenses, such as maintaining payroll.

It has come to our attention that some private schools with significant endowments have taken #PPP loans. They should return them. @SBAgov #CARESAct #PPPLoans

— Steven Mnuchin (@stevenmnuchin1) May 1, 2020

Mnuchin’s comments come amid reports that his own children attend a Los Angeles school that received a loan, according to Politico. 

The New York Times first reported that St. Andrew’s Episcopal School, which is attended by Trump’s son, Barron Trump, also received a federal loan.

“The president has made it clear that he does not believe private schools with significant endowments should be receiving PPP money and those that have should consider returning it,” Trump spokesperson Judd Deere told Politico.

A spokesperson for the school told the outlet that St. Andrew’s will use the funds to “ensure retention of our full faculty and staff, including hourly employees and coaches, during this very challenging and uncertain time.”

“If the terms of the program change, we will review to make sure we are in compliance and adjust accordingly,” spokesperson Richard Coco told Politico.

Brentwood School in Los Angeles, where Mnuchin’s children are enrolled, told the Los Angeles Times that it will use a PPP loan to address future declines in giving and enrollment.

Sidwell Friends School in Washington, D.C. where the daughters of former President Barack Obama and former President Bill Clinton attended school, also received a loan through the program. 

Sidwell Friends’ board of trustees said in a Wednesday memo to the school community that it accepted a $5.2 million loan “in light of actual and anticipated shortfalls, mounting uncertainty” and “the importance of maintaining employment levels,” The New York Times reported.

“We recognize that our decision to accept this loan may draw criticism from some quarters of the community,” the school said. It has a $53.4 million endowment.

The Hill has reached out to The White House, St. Andrew’s Episcopal School, Brentwood School and Sidwell Friend School for comment.