Government advances new university financing law

The Argentine government is promoting a new University Financing Law to compensate universities that have been demanding more budget for months. The initiative will enter via decree and be published in the Official Bulletin next Monday. It could be addressed in extraordinary sessions.

The Argentine government has announced the promotion of a new University Financing Law, aimed at addressing the demands for increased budget from higher education institutions, which have been claiming additional funds for several months.

According to available information, this legislative initiative will enter via decree and is expected to be published in the Official Bulletin next Monday. This could allow for its consideration in extraordinary sessions of Congress.

Public universities have expressed for months the need for adequate financing to maintain their operations and educational programs. This measure seeks to compensate for those budgetary shortfalls, though specific amounts are not detailed in the initial announcements.

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Argentine senators in heated Senate debate over 2026 Budget, tension on Article 30 cutting education funding targets.
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Argentine Senate debates 2026 Budget amid tension over education article

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Argentina's Senate will convene this Friday to approve the 2026 Budget, with secured support for general approval but resistance to Article 30, which eliminates funding targets for education and science. The ruling party aims to pass it unchanged after lower house approval, while negotiating with allies to protect the controversial provisions. Javier Milei's government views this law as essential for its fiscal roadmap and signals to international markets.

In the 'QR!' program on Canal E, experts analyzed the government's university funding project and compared it to the current law. Germán Pinazo, vice-rector of the Universidad Nacional de General Sarmiento, stated that the executive is breaching an existing regulation backed by the judiciary. The discussion highlighted budgetary obligations and effects on salaries and scholarships.

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Federal judge Martín Cormick suspended the presidential decree halting the University Financing Law and ordered the government to immediately implement salary increases for teachers and student scholarships. The ruling deems the decree arbitrary and illegal, violating the separation of powers by disregarding Congress's insistence. The decision addresses a claim by the National Interuniversity Council to safeguard the right to education.

The Senate's Finance Committee started reviewing the public sector readjustment bill, presented by Finance Minister Nicolás Grau. Deputies approved a 3.4% gradual salary increase but rejected the 'tie-breaker norm' aimed at greater job stability. Opposition anticipates rejecting that provision again in the Senate.

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Economy Minister Luis Caputo announced a new issuance of dollar-denominated bonds under local law to raise up to USD 2,000 million in the first half of 2026, aimed at meeting July debt maturities. The auctions will be biweekly and absorb up to USD 500 million per month. This step is part of the strategy to prepare for a return to international markets.

President Gustavo Petro signed Decree 1390 of 2025 declaring a 30-day economic and social emergency in Colombia after the Congress sank the financing bill. The measure aims to raise funds to cover a $16.3 trillion deficit and ensure essential services like health. The announcement sparks legal and political debate, with reviews pending from the Constitutional Court and Congress.

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Following the joint committee's failure on December 19 and ongoing consultations, Prime Minister Sébastien Lecornu's government presented a three-article special law to the Council of Ministers on Monday evening, chaired by President Emmanuel Macron. Set for votes in the National Assembly and Senate on Tuesday, it extends 2025 budget terms temporarily to avert public service shutdowns, while Macron demands a full 2026 budget by end-January targeting a 5% deficit.

 

 

 

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