The Alaska Supreme Court on Tuesday affirmed the decision of Governor Mike Dunleavy, a Republican, to drain a $400 million Higher Education Investment Fund, KTUU News reported.
The fund had been used to provide scholarships to 5,000 students a year.
But Governor Dunleavy said the Legislature was required to approve the higher education fund each year, and failed to do so, so he used the funds elsewhere. Some students sued.
The Supreme Court heard oral arguments in the case on Tuesday, and issued a short order later in the day saying that all five justices agreed with the governor. The justices will issue a formal opinion later.