Phoenix, AZ ~ **Hobbs Allocates Federal Funds to Offset Arizona University Cuts**

Arizona Gov. Katie Hobbs announced that American Rescue Plan Act funds will cover a $16.47 million reduction in operating funds for the state's three public universities under the FY 2027 budget.

The one-time 2.5% cut affected Arizona State University, Northern Arizona University and the University of Arizona. ASU's reduction was $8.096 million, NAU's was $2.625 million, and the University of Arizona faced cuts of $4.726 million at its main campus and $1.028 million at its Health Sciences Center.

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The allocation is intended to prevent the universities from cutting operational funding used to educate students and prepare workers for Arizona's workforce.

Hobbs said universities support the state's economic development and that she would continue advocating for resources for higher education. She also criticized Republican lawmakers, saying their budget decisions threaten public education and the state's competitiveness.

According to the governor's office, an earlier Republican budget proposal would have cut university funding by nearly $40 million annually and eliminated $25 million in research funding. Hobbs' Arizona First Budget reduced those proposed cuts to a one-time reduction of about $16 million. The newly announced federal funding will offset that reduction.

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