The rector of the Pontifical Catholic University (UC) and president of the G9, Juan Carlos de la Llera, sent a four-page letter to lawmakers. In it, he asked them not to approve the Higher Education allocation in the 2027 Budget Bill on the terms proposed by the government.
According to T13, citing a report by Ex-Ante, the G9 universities' concerns center on three points: the decline in Direct Fiscal Support, the reduction in Performance-Based Core Funding and new restrictions on using surpluses from the Solidarity Fund for University Loans. The sources do not specify which institutions belong to the G9, although they indicate that Performance-Based Core Funding finances traditional private universities in the system.
De la Llera maintains that he is not asking for more resources, but for state contributions to be maintained in real terms, taking projected inflation into account. "What this bill puts at risk are the principles on which Chile has built one of Latin America's strongest university systems," he wrote.
The first concern is Direct Fiscal Support (AFD), an institutional contribution that universities use to fund their academic staff, sustain research and meet long-term commitments. Unlike project funding, it forms part of their funding base. For G9 universities, AFD totals $124,695 million in the bill, a decline of 3% compared with the 2026 Base Budget Law. With projected inflation close to 3%, the G9 argues that the amount should at least retain its purchasing power.
The second point is Performance-Based Core Funding (BpD), which falls from $58,203 million to $52,560 million. That represents a decline of 10.6% in nominal terms and 12.3% in real terms. Combined, the G9's AFD and BpD would decrease by 5.4%, and the shortfall needed to maintain their purchasing power relative to the initial 2026 Budget Law reaches $11,578 million.
The third concern is Solidarity Fund surpluses, resources derived from repayments of loans issued to students in previous years. Budget notes 11 of Program 02 and 15 of Program 03 reduce the limits in effect in 2025 and 2026 by 10 percentage points. The use of surpluses from the previous year falls from 45% to 35%, and the use of those accumulated through 2025 falls from 30% to 20%.
According to the sector, these surpluses are one of the few sources universities have to cushion the funding shortfall associated with tuition-free education. The restriction therefore also limits their ability to offset other budget pressures.
State universities face similar cuts. A report by Acción Educar, an education research center, indicates that the Institutional Contribution to State Universities falls by 11.4%, or about $13,184 million. The State University Strengthening Plan decreases by 34.8%, or about $7,731 million, and the contribution to the University of Chile falls by 13.6%.
"The contribution is reduced, and at the same time all avenues for adjustment are closed off," De la Llera said, warning that universities cannot offset these reductions by freely raising tuition or enrollment fees. His request to Congress is to maintain state contributions and resources for science and research in real terms as the allocation moves through the legislative process.
