higher education; FY2026

HB 2967 modifies Arizona's higher education funding for fiscal year 2025-2026. It reduces the state's required match for student registration surcharge funds (allowing less than $2 in state funds per dollar raised) and shifts community college STEM/workforce program funding and operating state aid to be determined by the annual appropriations act, rather than fixed formulas. The bill directly affects Arizona's public universities and community colleges by changing how state funds are allocated for student aid and college programs. Governor vetoed the bill on June 25, 2025, preventing it from becoming law.