The University of California Board of Regents on a voice vote approved the allocation of $30 million in LLC fee income for the 2025 fiscal year, directing the funds into contingency reserves, campus and program accounts and a new reserve tied to a potential federal contract. Chair Hernandez called for the motion and the item, listed as Item N‑1 on the agenda, passed with recorded ayes from Regents Aguayano, Hernandez, Lee, Myers, Park, Riley, Robinson, Sirs and Wang.

The allocation splits the $30 million across 10 categories the presenter described as addressing nondiscretionary pay and oversight, contingency reserves, capital and program grants and a new federal reserve. The presentation said the allocation includes an increase in the LLC fee contingency target from $12 million to $15 million and a proposed $2.1 million post‑contract contingencies fund for legacy liabilities tied to the LLCs.

Regents and staff said the item is the committee’s primary business for the meeting and moved quickly through questions. The presenter summarized the plan and asked for approval; no amendments were proposed during committee discussion.

Key allocations listed by the presenter include: $3.3 million for nonreimbursable compensation and laboratory costs; $7.65 million for UCOP oversight; $1.65 million for business development (reported as already included or approved in the UCOP budget); $2.1 million to a post‑contract contingency reserve for legacy liabilities; $1.45 million to the LLC fee contingency fund (with the fund target raised from $12 million to $15 million); $4 million to a guest‑house reserve fund to cover future operations and maintenance once the facility is built; $500,000 to the Livermore Lab Foundation for back‑office support; $5.75 million to establish a new Federal Reserve Fund (held in reserve pending possible award of a federal contract); $2.6 million to a Capital and Campus Opportunity Fund (including $2 million for a Southern California hub and $500,000 for UC San Diego’s Emerging Technology National Security Fellowship program); and $1 million to the tryout reserve fund, bringing it near its $10 million target.

The presenter described the Federal Reserve Fund as a short‑term reserve that would cover immediate post‑award expenses if the UC team is awarded a federal contract that is currently under reevaluation by the government. The presenter said regional approvals have already covered most of the capital allocation and the committee was being asked to provide the additional requested amounts this fiscal year.

Motion and vote: A motion to approve the allocation was made and seconded; the roll call recorded ayes from Regents Aguayano, Hernandez, Lee, Myers, Park, Riley, Robinson, Sirs and Wang and the chair announced Item N‑1 approved.

What the action does not do: The approval authorized the distribution of the fee income as presented; it did not adopt detailed spending plans for each program line beyond the allocations described, and no specific contracts or procurement actions were taken at the meeting. Staff indicated further implementation steps—design finalization for the guest house and post‑award planning for the federal reserve—will follow the allocation.

The committee adjourned shortly after approving the item. Staff said remaining implementation steps and any budget impacts will be reflected in future UCOP reporting and campus budgets.