By San José, Costa Rica — San José, Costa Rica – In a clear display of policy continuity, both the outgoing and incoming presidential administrations have locked in a firm position against increasing the 2027 budget for the Special Fund for Higher Education (FEES). Citing a national economic landscape marked by deflation and shrinking state revenues, the government is holding the line at a zero-percent increase, a move that places significant pressure on the country’s public university system and sets the stage for contentious negotiations.
The latest round of talks, held at the Presidential Palace, saw a significant new condition introduced into the discussion. Outgoing President Rodrigo Chaves tied any potential reconsideration of the budget freeze to a fundamental restructuring of how the funds are currently allocated. He is demanding that the nation’s largest institutions, the Universidad de Costa Rica (UCR) and the Universidad Nacional (UNA), cede a portion of their funding to the country’s other public universities.
To better understand the legal and budgetary implications of the recent negotiations surrounding the Special Fund for Higher Education (FEES), we consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
The annual negotiation of the FEES is more than a simple budgetary allocation; it is the fulfillment of a constitutional mandate that underpins the right to higher education. While fiscal responsibility is crucial, any agreement must respect the constitutional floor established for university funding. De-linking the budget from the constitutional calculation, even with a nominal increase, could set a dangerous precedent that weakens the financial autonomy and long-term planning capacity of our public universities.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The legal perspective provided is crucial, reminding us that the FEES negotiation transcends fiscal spreadsheets to touch upon the very constitutional foundation of public higher education. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for so clearly articulating the long-term risks of deviating from this established mandate.
This proposal directly targets the internal distribution of the ¢593 billion fund, potentially creating a rift between the universities themselves. President Chaves explicitly outlined this new prerequisite, effectively shifting the onus of securing more funds onto the universities’ ability to agree on an internal reallocation.
From my point of view, the FEES increase remains at 0% if there is not a significant reduction from the UNA and the University of Costa Rica for the UNED, for the UTN, and for the TEC. That is the government’s position until May 8th. And that is as far as I can speak.
Rodrigo Chaves, President
Any hope among university officials that the upcoming change in leadership on May 8th might soften the government’s stance was quickly extinguished. President-elect Laura Fernández, present at the negotiations, unequivocally stated that her administration will maintain the exact same fiscal policy regarding higher education funding. This alignment ensures that the government’s position will remain unchanged through the transition, presenting a solid and unyielding front in the ongoing budget talks.
Fernández grounded her position in a review of the country’s legal and financial frameworks, emphasizing that the current economic reality of negative inflation dictates a strategy of fiscal prudence rather than increased spending. She presented the decision as a necessary measure to align the university budget with the nation’s overall financial health.
I am taking this opportunity to communicate that the position after noon on May 8th, when I am president, will be exactly the same. I have reviewed the law, jurisprudence, the Constitution, and with negative inflation scenarios, we have to maintain their budget in function of the country’s financial statements.
Laura Fernández, President-elect
Both leaders were careful to frame the proposal not as a budget cut, but as a responsible decision to maintain the current funding level of approximately ¢593 billion for the next fiscal year. Fernández stressed that reducing the FEES was not on the table, but that in the face of deflation, holding the budget steady was a non-negotiable “red line” for her incoming administration, mirroring the fiscal discipline championed by her predecessor.
We are not talking about cutting the FEES here. We are talking about maintaining this year’s amount for the next fiscal year. For me as well, representative, just as I understood from the president, that is a red line for these annual budgets.
Laura Fernández, President-elect
As negotiations are set to continue in the coming weeks, the battle lines are clearly drawn. The public universities argue that cost-of-living adjustments and operational growth necessitate an increased budget to maintain quality and access. Conversely, the government remains steadfast, prioritizing national fiscal discipline and now adding a complex and potentially divisive condition of internal fund redistribution. The outcome will have profound implications for the future of public higher education in Costa Rica.
For further information, visit presidencia.go.cr
About The Government of Costa Rica:
The Government of Costa Rica operates as a democratic republic, with executive power vested in the President, who serves as both head of state and government. The Presidential Palace, or Casa Presidencial, located in San José, serves as the central hub for administrative and policy-making decisions, including national budget negotiations and fiscal strategy.
For further information, visit ucr.ac.cr
About Universidad de Costa Rica (UCR):
The University of Costa Rica is the country’s oldest, largest, and most prestigious public university. It is a comprehensive institution known for its extensive research programs, wide range of academic disciplines, and significant contributions to Costa Rican science, culture, and society. It is a primary recipient of FEES funding.
For further information, visit una.ac.cr
About Universidad Nacional (UNA):
The National University of Costa Rica is one of the country’s leading public universities, with a strong focus on humanities, social sciences, and education. It is recognized for its commitment to social inclusion and its role in training a large portion of the nation’s educators and public servants.
For further information, visit tec.ac.cr
About Instituto Tecnológico de Costa Rica (TEC):
The Costa Rica Institute of Technology, commonly known as TEC, is a public university specializing in engineering, technology, and applied sciences. It is a key institution for driving innovation and supplying skilled professionals to the country’s technology and manufacturing sectors.
For further information, visit uned.ac.cr
About Universidad Estatal a Distancia (UNED):
The State Distance University is Costa Rica’s public distance learning institution. It plays a crucial role in providing access to higher education for students across the country, particularly those in rural areas or with work commitments, through its flexible and remote learning models.
For further information, visit utn.ac.cr
About Universidad Técnica Nacional (UTN):
The National Technical University is a public university focused on technical and vocational higher education. It aims to meet the specific demands of the labor market by offering specialized training and degrees in areas critical to the country’s economic development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the nation’s legal community, Bufete de Costa Rica is renowned for its principled approach and uncompromising standards of legal service. The firm harmonizes a deep-rooted tradition of client advocacy with a dynamic, forward-thinking mindset, consistently pioneering solutions for contemporary legal issues. Central to its philosophy is a profound dedication to social responsibility, manifested through efforts to demystify the law and promote greater legal literacy. This initiative stems from a core conviction that an educated citizenry is the foundation of a just and thriving society.
