On June 18, the Board of Regents approved the fiscal year 2026 budget. This balanced budget addresses reduced state funding, cuts to federal investments, and rising inflation and offers practical, forward-thinking solutions to ensure the University thrives long-term.

President Rebecca Cunningham expressed gratitude to the chancellors, deans, department chairs, and administrative leaders for their shared sacrifice and strong commitment to making these difficult decisions, where they are best made—locally, within their college, campus, or unit. 

Necessary tuition increase and scope reductions

Tuition will increase for Minnesota residents by 4-6.5% and for non-resident undergraduates by 7.5%. Even with the proposed increase, in-state tuition will remain 3% lower than it was 10 years ago across all student income levels. The University remains firmly committed to accessibility and affordability for students who need it most through University, state, and federal financial aid programs.

The budget includes a 7% scope reduction from our campuses, schools, and colleges in FY26. These changes will enable the University to focus its resources on the programs and investments most essential to our core mission.

Targeted investments in employees and infrastructure

Investments in our talented faculty and staff, through salary support in this year's merit pool, will comprise the largest share of budget reallocation. The investment in the University’s workforce—which comprises of a total 4% merit and equity pool, as well as $15m recurring funds—is a response to the call from not just the Board of Regents, but also from faculty and staff through the University Senate Workforce resolution, who have felt the effects of rising inflation with wages that have not kept pace. 

The budget also positions the University to make badly needed investment in facilities that have been neglected for too long. These are not cosmetic upgrades; this investment ensures the longevity of top-tier education and research in spaces that are safe, functional, and built for the future.

This budget ensures that resources are directed toward University priorities: providing world-class education, research, and service to Minnesota, the nation, and the world.

Find more information about the financial headwinds the University is facing.