It's complicated. The legislature has empowered the BOR to set policy. Here is their policy, which does seem to allow for some very limited support, as far as I can glean:
From the Board of Regents Policy Manual:
www.usg.edu
4.5.8 Funding of Intercollegiate Athletic Programs
For the purpose of this policy, the USG has adopted the definitions of revenues and expenses provided by the NCAA for the Financial Reporting System as outlined below and to be further defined in the
USG Business Procedures Manual. The NCAA Financial Reporting System aims to capture all revenues and expenses on behalf of an institution’s intercollegiate athletics program, including those by outside entities (e.g. foundations, booster clubs) and institutions similarly shall include all intercollegiate athletics revenue and expense to include entities operating on behalf of the institution’s athletics program.
As used in this Policy, “Athletics Operating Revenue” is the total revenue generated by the institution’s intercollegiate athletics program. “Direct Institutional Support” is the direct financial support provided by the institution to the athletics programs (e.g., tuition funds) used to support intercollegiate athletic activities. “Subsidy” is the sum of direct institutional support and student fees and does not include the value of out-of-state tuition waivers. “Subsidy Percentage” is the subsidy divided by athletics operating revenue as defined in the USG Business Procedures Manual. “Athletics Operating Expense” is the total expense spent by the institution’s intercollegiate athletics program. Athletics Operating Revenue, Direct Institutional Support, Subsidy, Subsidy Percentage, and Athletic Operating Expense shall be further defined in the USG Business Procedures Manual.
Institutions may expend Education & General fund resources on behalf of the institution’s intercollegiate athletics program except as noted: Institutions must not expend Fund 10000 state appropriations on athletics and must not expend Education & General fund resources in support of athletic scholarships.
A. A form will be provided to ensure a standardized reporting format for each institution to annually report its intercollegiate athletics revenues and expenses in accordance with
Section 4.5.6.1.
B. The subsidy percentage shall not exceed:
- 10% for NCAA DI-A institutions affiliated with the ACC, Big Ten, Big 12, Pac-12 or SEC; often referred to as the Power 5;
- 65%: NCAA DI-A institutions affiliated with other conferences;
- 75% for NCAA Division I-AA institutions;
- 80% for NCAA Division II institutions;
- 85% for NAIA and NJCAA institutions.
C. Except for the Power 5 institutions, total athletic operating expenses may not increase by more than 5% annually unless approved in advance by the Chancellor.
D. Effective July 1, 2016, each institution exceeding the allowable subsidy percentage in the prior fiscal year shall submit to the Chancellor a plan for approval that reduces the subsidy over a fiscal year period, not to exceed four years, until the subsidy percentage complies with the requirements of subsection B. Failure to be in compliance in four years shall, at the discretion of the Chancellor, result in athletics programming mandates from the Chancellor including but not limited to reduction or change in sport offerings, change in conference affiliation, and change in governing body or division membership. Any institutions below these caps will have one year to get back in compliance.