The Government filed an appeal to curb the University Funding Act and prevent State bankruptcy

The Government of Javier Milei filed an Extraordinary Federal Appeal in the early morning to suspend the application of articles 5 and 6 of the University Financing Act and avoid massive spending that has no support in the budget.

The libertarian administration anticipated that they do not have the money to comply with the obligation imposed by Justice, which amounts to 2.5 trillion pesos, and that the rule, as proposed, leads directly to the bankruptcy of the State and the return of the fiscal deficit.

The presentation was made by the National Treasury Attorney's Office, headed by Sebastián Amerio, before Chamber III of the National Court of Appeals in Federal Administrative Litigation. The objective is to stop a precautionary measure that ordered the application of those articles of Law No. 27,795 and rescinded Decree No. 759/2025

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The court ruling requires expenditures without specific funding, which directly compromises economic stability and breaks with the principle of fiscal balance that guides current economic policy

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Along these lines, the precautionary measure has effects equivalent to a final judgment, since it imposes an immediate burden on public accounts.

In addition, the Executive Branch requested that Supreme Court judges excuse themselves from intervening in the case because of their status as university professors, and called for the appointment of co-judges to ensure impartiality in the treatment of the file.

The central problem with the law is that it lacks a defined source of funding. Despite having been ratified by Congress after the rejection of President Javier Milei's veto, its application is impossible under current conditions, since it does not establish where the resources come from

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In this regard, the Government relies on current budgetary regulations, such as laws 24,629, 24,156 and Budget Act 27,798, which require that all

expenditures have specific items approved by Congress.

Under this criterion, the judicial decision advances on powers specific to the Legislative and Executive Powers, violating the principle of division of powers.

Even during the treatment of Budget 2026, those who promoted the law did not define the sources of funding necessary to sustain it. Faced with this omission, the Executive moved forward with judicial remedy as the only tool available to prevent the bankruptcy of the State and the return of fiscal deficits, which would destroy

the stability achieved.

If the Justice rejects the appeal, the State would be obliged to transfer approximately 2.5 trillion pesos to universities, money that is currently not available.