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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: APPROP DP 11-7-0-0 |
HB 2954: higher education; 2025-2026
Sponsor: Representative Livingston (with permission of Committee on Rules), LD 28
House Engrossed
Overview
Contains provisions relating to higher education needed to implement the FY 2026 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.
Provisions
Students Not Lawfully Present in the U.S. (Permanent Law) (Sec. 1)
1. Mandates the Arizona Board of Regents (ABOR) prohibit the public universities from using public or private monies to subsidize, offset, reduce or mitigate the tuition or fees charged to any student who is not lawfully present in the U.S.
2. Specifies a student is not lawfully present in the U.S. if the student is:
a) present without authorization under federal law;
b) a foreign national who has been paroled into the U.S. by the U.S. Department of Homeland Security; or
c) a foreign national who has applied or intends to apply for asylum in the U.S. if the application for asylum has not yet been approved.
Resident Undergraduate Tuition Rate Reduction (Session Law) (Sec. 10)
3. Directs ABOR, for FYs 2026, 2027 and 2028, to fix the tuition to be charged at each public university for resident undergraduate students at a tuition rate that is 2.5% lower than the FY 2025 tuition rate for each public university.
4. Prevents ABOR and the public universities from requiring students to pay any charge as a result of the reduced tuition rates fixed in FYs 2026, 2027 and 2028.
5. Repeals the requirement that ABOR reduce tuition as prescribed on January 1, 2029.
ABOR Lease-to-Own and Bond Transactions (Permanent Law) (Sec. 4)
6. Allows ABOR, beginning in FY 2027, to enter into a maximum of $1,125,000,000, rather than $800,000,000, in lease-to-own and bond transactions.
7. Requires ABOR, beginning on the general effective date, to submit to the Joint Committee on Capital Review (JCCR) the scope, purpose and estimated cost of each new project that will be financed by lease-to-own and bond transactions.
8. Prohibits ABOR from distributing monies for a project until JCCR approves the project by a majority vote.
9. Defines financed to mean funded, in whole or in part, by payments pursuant to lease-to-own agreements or the proceeds of bond agreements entered into by ABOR.
10. Instructs JCCR to hear and approve or disapprove a lease-to-own or bond transaction project submitted by ABOR by JCCR's second meeting after the project is submitted to JCCR.
Arizona Teachers Academy (Academy) (Permanent Law) (Sec. 3)
11. Allows a degree-granting private postsecondary educational institution in Arizona (private institution) that offers postbaccalaureate teacher preparation programs that lead to teacher certification to participate in the Academy and receive Academy Fund monies.
12. Limits the reimbursement for an Academy scholarship provided by a private institution at the remainder of the average in-state tuition and fees charged by the public universities, minus other gifts and aid awarded to the student.
13. Includes, in the definition of eligible postsecondary institution, a private institution opting to participate in the Academy.
Tuition Scholarship Funds
14. As permanent law and retroactive to July 1, 2025, directs the State Treasurer, on notice from ABOR, to invest and divest monies in the Spouses of Military Veterans Tuition Scholarship Fund (Military Scholarship Fund) and credit investment monies to the Military Scholarship Fund. (Sec. 5, 12)
15. As permanent law and retroactive to July 1, 2025, transfers, after tuition scholarships are awarded to all eligible applicants, any remaining unexpended and unencumbered Military Scholarship Fund monies to the Academy Fund. (Sec. 5, 12)
16. As session law, adds that to be eligible to receive a tuition scholarship from the Spouses and Dependents of Law Enforcement Officers Tuition Scholarship Fund (LEO Scholarship Fund), an individual must be:
a) an Arizona resident when applying for and receiving a tuition scholarship; and
b) physically present in Arizona for each semester for which the individual receives a tuition scholarship if they are enrolled in an Arizona public university. (Sec. 6)
17. Modifies the definition of law enforcement officer, as it relates to the LEO Scholarship Fund, to require that an officer be an Arizona resident who is currently employed in Arizona as a peace or correctional officer. (Sec. 6)
18. As session law, delays the repeal of the LEO Scholarship Fund from July 1, 2025 to July 1, 2027. (Sec. 6)
19. As session law, directs ABOR to deposit, after tuition scholarships are awarded to all eligible applicants, any remaining unexpended and unencumbered Military Scholarship Fund monies in FYs 2026 and 2027 as follows:
a) $2,000,000 in the LEO Scholarship Fund; and
b) all other remaining monies in the Academy Fund. (Sec. 11)
20. Repeals the requirement for ABOR to deposit Military Veterans Scholarship Fund monies in FYs 2026 and 2027 as prescribed on July 1, 2027. (Sec. 11)
Miscellaneous
21. As permanent law and retroactive to July 1, 2025, directs the State Treasurer, on notice from ABOR, to invest and divest Arizona Veterinary Loan Assistance Fund (Veterinary Fund) monies and credit investment monies to the Veterinary Fund. (Sec. 2, 12)
22. As session law for FY 2026, continues to allow each dollar raised by the surcharge on student registration fees assessed pursuant to the Arizona Financial Aid Trust Fund to be matched by less than $2 appropriated by the Legislature. (Sec. 7)
23. As session law for FY 2026, continues to declare science, technology, engineering and mathematics and workforce programs state aid and operating state aid for community college districts are as specified in the General Appropriations Act. (Sec. 8, 9)
24. Makes technical changes. (Sec. 1, 3, 4, 5, 6)
25. Makes conforming changes. (Sec. 3, 4)
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HB 2954
Initials CH Page 0 House Engrossed
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