Financial planning move: What motivates Trump's proposal for giving grant money to Ivy League universities like Harvard?
Trump's recent declaration on Truth Social suggests a plan to pull $3 billion in grants from the alleged anti-Semitic Harvard and channel them into vocational schools nationwide, stating it'd be an excellent investment for the USA. However, it's doubtful whether Trump possesses the authority to redistribute funds allocated by Congress for research purposes.
In the current political climate, the Republican movement could benefit from pushing funding towards vocational schools. Most of these educational institutions operate on a commercial basis, and under Trump and the GOP, their growth could become more significant. Notably, the commercial sector of higher education has faced criticism in the past for fraud, abuses, and questionable practices.
The approved House bill represents a triumph for commercial education, primarily due to the repeal of student loan limits and a new funding method for scholarship programs that expands federal aid to students enrolled in shorter training courses. Trump intends to review the entire accreditation process, potentially making it easier and quicker for commercial educational institutions to secure federal funding.
Investors are optimistic about the current president being favorable towards for-profit colleges, with stocks in the sector experiencing a surge since Trump's election. For instance, shares of Adtalem Global Education, which manages colleges, medical schools, and one veterinary school, have risen by 61% since Trump's election.
The commercial trade association "Career Education Colleges and Universities" applauded Trump's proposal to divert funds from Harvard and his "ongoing focus on career training." They stated that the best approach to support career schools was by reducing regulatory burdens and increasing funding, allowing students to select high-quality educational institutions.
There's a pending tax and budget bill, H.B. 1, which includes new professional scholarships for students without a college degree who enroll in job training programs lasting 8-15 weeks. However, there are concerns over the bill's lack of specific assessment criteria for the quality of participating programs. Previous versions of the draft law specified these criteria, but they've been left vague in H.B. 1.
Analysts warn that the proposed changes could lead to an increase in abusive for-profit colleges, as these institutions have a history of defrauding students and leaving them with significant debt. Some experts argue that the repetitive pattern of giving for-profit colleges more federal benefits culminates in abuses, and it's inefficient use of taxpayer funds.
The debate over education priorities has escalated, with supporters claiming it addresses elitism and ideological imbalances and critics viewing it as an attack on academic freedom and research. The controversy also brings broader issues to light, such as funding allocation in education, the role of government in shaping educational priorities, and the impact on both liberal arts and vocational education.
In the wake of Trump's proposal to redirect funds from prestigious universities like Harvard towards vocational schools, the Republican movement might find an opportunity to support commercial education. Under Trump's ongoing focus on career training and potential changes in the accreditation process, for-profit colleges could experience significant growth, despite past criticisms of fraud and abuses.
