Florida lawmakers reached a budget agreement that would cut or eliminate extra funding streams tied to the state’s “preeminent universities,” affecting University of Florida, Florida State University, University of South Florida, and Florida International University. The deal would eliminate the pot that previously provided $40 million for preeminent institutions, after Florida Senate proposals for $100 million did not make it into the final agreement. The budget also includes a structural change transferring the University of South Florida’s Sarasota-Manatee campus to New College of Florida, a move aligned with Gov. Ron DeSantis’ broader agenda for New College’s transformation. The policy shift matters because the preeminent designation ties state funding to performance metrics such as graduation rates and doctoral degree production, and the loss of guaranteed funds could constrain hiring, student recruitment, and program capacity. Campus finance leaders will be watching for second-order effects across faculty capacity and student support, especially as institutions attempt to stabilize enrollment and manage rising operating costs.