U of M Proposes 6.5% Tuition Hikes Amid $5.1B Budget Crunch

Facing federal and state funding shortfalls, the University of Minnesota unveiled a $5.1 billion budget proposal for fiscal 2026 that includes 6.5% undergraduate tuition hikes at its flagship Twin Cities and Rochester campuses, with smaller increases at Crookston, Duluth and Morris.[1] Officials cited declining out-of-state enrollment, flat state appropriations and rising operational costs from inflation as key drivers, part of a national trend hitting higher education hard.[2][6] The plan also calls for 7% cuts to academic program budgets while allocating a 3% merit raise and 1% market adjustment for eligible staff.[1] The Board of Regents is slated to vote on the budget next Wednesday, following a pattern of fiscal pressures intensified by underinvestment in facilities and workforce development.[1][2] At the Twin Cities campus, enrollment dips mirror broader declines, exacerbating deficits as fewer high school graduates pursue college nationwide.[6] University leaders are also requesting $48 million more from state legislators to offset revenue losses tied to these trends.[4] In Duluth, deepening enrollment shortfalls have widened deficits, raising prospects of further program reductions across the U system.[3] Critics highlight Minnesota's low education freedom ranking—#45 nationally—potentially worsening access amid hikes that could burden local families in the North Star State.[3] The proposal aims to align expenses with projected revenues, but passage could spark backlash from students and faculty already strained by rising costs.