Argentina Supreme Court upholds university financing law, forcing government funding

Argentina’s Supreme Court rejected a government appeal and left in force a precautionary measure that obliges the state to apply key provisions of Law No. 27 795, the University Financing Law. The ruling requires the Executive to update salaries of university teaching and non‑teaching staff and to increase scholarship funding as mandated by articles 5 and 6 of the law.

The Milei administration says full implementation would cost between 1.3 trillion and 3.6 trillion pesos and could threaten the fiscal surplus, prompting Economy Minister Luis Caputo to explore internal budget reallocations. Government officials assert that any financing will be sourced without altering the surplus.

University rectors, the National Inter‑University Council and teachers’ unions welcomed the decision, warning that further strikes could resume if the law is not enacted promptly. Union leaders have called for urgent collective bargaining to compensate for the 32 % salary loss recorded in 2024 and for a scholarship increase of up to 130 %. The Supreme Court’s decision does not resolve the constitutionality of the decree that previously conditioned the law’s financing, leaving that issue to continue through the courts.