Government officials assert the 2025 law is effectively repealed by the current budget and accuse outside funding of risking macroeconomic stability, while a court case heads toward the Supreme Court.

Universities face long-term underfunding, with real pay losses for faculty and a reported 70 percent drop in purchasing power over the past decade.

The dispute over funding has been escalated to the Supreme Court for resolution.

The protests unfold amid broader political and economic tension as Milei seeks to reshape state spending and faces legal challenges and public pressure.

Officials argue the 2025 law lacks explicit funding mechanisms and cannot be guaranteed during fiscal austerity, warning that non-budget allocations would threaten state finances.

Protests connect university funding to wider economic malaise, including weak activity, falling wages, and rising unemployment.

Protesters linked the rally to a 2025 university financing law that would index state resources to inflation, and argued the law should be implemented despite the government saying the 2025-budget mix supersedes it.

University leaders and students say defunding undermines national pride and the quality of higher education.

Underfunding extends to university hospitals and staff shortages, with about 1,200 university staff resigning in 2.5 years and some clinics warning they could operate for only about 45 days on current budgets.

The government maintains that funding increases are not specified in law and cannot be guaranteed amid fiscal limits, with the case moving toward the Supreme Court.

Protesters criticize austerity measures and accuse Milei and allies of prioritizing other sectors, portraying universities as a casualty of broader cuts.

Tens of thousands of Argentines joined protests in Buenos Aires and other major cities on May 12, 2026, demanding restored funding for public universities amid government cuts under President Milei.