USG outlines amended FY2026 priorities, pushes $325 million seed for needs‑based 'DREAMS' endowment

Chancellor Sonny Perdue told the Georgia House Appropriations Subcommittee on Higher Education that the governor’s amended FY2026 budget recommends $430,000,000 in state funds for the University System of Georgia and an additional $145,000,000 in cash‑funded capital projects.

The presentation focused on three priorities: employee compensation, a new needs‑based scholarship initiative and capital maintenance. Perdue described the compensation change as a one‑time supplement, saying, "The governor's recommendation for the 26 amended budget includes, a total of $430,000,000 in state funds for the system" and that the recommended one‑time $2,000 supplement accounts for roughly $105,000,000 in the USG portion. He told the panel the supplement targets full‑time regular state employees.

Perdue introduced a proposed needs‑based scholarship program the system calls "DREAMS," intended to complement HOPE by helping undergraduates who demonstrate financial need but do not qualify for HOPE. He said the governor recommended a $325,000,000 state contribution to seed the endowment and described a private fundraising effort to multiply that principal. "We've designed the parameters of this program where students would have to have contributions, skin in the game regarding, work service, volunteer work, intern, paid interns," Perdue said, describing eligibility limits and student expectations.

Perdue said awards would generally range from about $300 to potentially $3,000 per academic year, be limited to eight semesters, and be allocated at the campus level with fiscal disbursement handled by the Georgia Student Finance Commission. He emphasized the system intends to use scholarship dollars for students and not to divert state appropriations to foundation administrative fees.

On capital needs, Perdue asked the committee to consider funds to address deferred maintenance through the Georgia State Financing and Investment Commission. He highlighted a requested $88,200,000 toward design and construction of a Georgia Tech aerospace building and a design allocation for a University of Georgia School of Nursing project, estimating a $5,600,000 design request and roughly $74,900,000 total cost as presented to the Regents. Perdue also listed investments for medical school equipment and simulation training.

Committee members questioned governance of the DREAMS endowment and whether the legislature would retain appropriation control over proceeds. Perdue said the planned structure is an endowment combined with foundation fundraising; GSFC would act as fiscal agent for disbursements while allocations across campuses would be driven by a student aid index tied to FAFSA‑derived measures of need. Perdue invited legislative feedback on program parameters and said the system will provide suggested parameters and a needs assessment to the committee.

The chancellor closed by requesting continued partnership with the legislature on FY2027 planning and thanked the appropriators for their support.

The committee moved on to the Technical College System of Georgia after the USG presentation; there were no votes during this presentation.