The University of Arkansas System expects to take "a measured approach to allow the System to comply" with an executive order requiring federal contractors to have workers vaccinated against covid-19, according to a statement geared toward investors dated Tuesday.
Large public universities in some bordering states including Oklahoma, Tennessee and Mississippi have publicly announced that as federal contractors they will require all or some employees to be vaccinated against covid-19 to meet a requirement set forth in a Sept. 9 executive order from President Joe Biden.
The preliminary statement issued Tuesday for investors as part of a bond issue includes a section about Biden's announced covid-19 requirements — described in the document as Biden's "Action Plan" — and effects on the UA System, which also is the recipient of federal contracts.
"At this time, the System anticipates that it will review these requirements on a contract-by-contract basis, along with additional information that may be received from the federal agencies, and take a measured approach to allow the System to comply the Action Plan without violating State law," the statement reads.
The statement describes two state laws passed by lawmakers this year restricting vaccine mandates, as well as steps taken to try to legally block Biden's "Action Plan."
"The Action Plan is the subject of multiple legal challenges from various states, including Arkansas, but the System is unable to predict the ultimate outcome of any legal challenges or whether enforcement of the Action Plan will be deferred or continued while any legal challenges are subject to litigation," states the preliminary statement, published on the website MuniOS.com, a platform used by issuers of municipal bonds and investing professionals.
Some universities in bordering states have cited how they risk losing millions in federal contracts that help pay for research and other services if they do not comply. These bordering states are, like Arkansas, dominated politically by Republicans, and many Republicans have voiced strong opposition to vaccine mandates.
But not all large universities in states where mandates face political opposition have made public announcements.
Last week, UA System spokesman Nate Hinkel said the system was "in the process of reviewing the executive order and guidance." Hinkel acknowledged that roughly $120 million in federal contracts may be "subject to the requirements" of the Biden order.
The preliminary statement dated Tuesday also refers to other parts of Biden's plan, including a pending vaccine requirement that would affect workers in health care facilities that receive Medicare and Medicaid reimbursement, such as University of Arkansas for Medical Sciences health care centers.
"The System and the various campuses of the System enter into contracts with the federal government from time to time, and unless an exemption is received, the System may be subject to the Action Plan's requirements as a federal contractor and a Medicare and Medicaid provider," the statement reads.
The preliminary statement makes note that a state law otherwise restricting state agencies or entities from imposing vaccine mandates does allow for a state-controlled medical facility to seek approval from legislators for a covid-19 vaccine requirement.