Governor Katie Hobbs Announces ARPA Allocation to Preserve Funding for Arizona’s Public Universities

Phoenix, AZ - Today, Governor Katie Hobbs announced the allocation of American Rescue Plan Act (ARPA) funds to offset the more than $16 million in budget cuts to Arizona's public universities included in the FY 2027 State Budget.

"Arizona's universities are the engine of our state's economic development and I'm proud to support them," said Governor Katie Hobbs. "I will always fight to ensure state universities have the resources they need to deliver opportunities for Arizonans and ensure our employers have a high-skilled workforce. I'll continue standing up to extremist legislators and their attacks on public education that kill jobs and make our state less competitive."

Arizona State University (ASU), Northern Arizona University (NAU) and the University of Arizona (UofA) collectively lost more than $16 million as a result of a one-time 2.5% reduction to each university's operating lump sum appropriation.

Enacted Lump Sum Reduction for Each University

• Arizona State University: $8,096,000
• Northern Arizona University: $2,624,500
• University of Arizona (Main Campus): $4,725,900
• University of Arizona (Health Sciences Center): $1,027,700
• Total: $16,474,100

By allocating ARPA funds to ASU, NAU and the UofA, Governor Hobbs is ensuring Arizona's public universities do not face the costly decision of cutting operational funding needed to educate students and prepare Arizona's future workforce.

The Republican Budget from April slashed university funding by nearly $40 million every year moving forward. It also eliminated $25 million in critical research funding.

In her Arizona First Budget, Governor Hobbs fought to reduce the Republicans' reckless cuts to a one-time amount of $16 million. The recently announced ARPA allocation ensures universities are now fully protected from this one-time reduction in funding.