University of Minnesota approves largest tuition hike in a decade amid US education funding crisis
University of Minnesota approves steep tuition hike amid US funding crisis. (AI Image)
The University of Minnesota (U of M) Board of Regents has approved the largest tuition increase in more than ten years, marking a significant development in the landscape of US higher education.
In a 9-3 vote held on June 18, 2025, the board adopted a budget for fiscal year 2026 that includes tuition increases across all campuses and cuts to academic spending.
The decision comes as the university faces a steep reduction in federal and state support, with leaders citing an 'uncertain financial landscape' and warning of tough decisions ahead. As reported by KSTP, University President Rebecca Cunningham told the board that 'higher education is facing unprecedented challenges' and emphasized the need to ensure financial stability despite the difficult choices involved.
Tuition hike affects students across all campuses
Under the new budget, undergraduate tuition will increase by 4% to 7.5% depending on the campus. Graduate students will see tuition rise by 6.5% for residents and 7.5% for out-of-state students. According to KSTP, officials said this marks the steepest tuition hike in over a decade and is part of a broader effort to stabilize finances.
The board also approved a 7% cut in academic spending, a move that has drawn concern from students and faculty.
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During a public hearing the week prior to the vote, members of the university community expressed fears about the impact these changes could have on education quality and employee well-being.
Federal and state funding cuts deepen financial strain
University officials warned that a potential 30% reduction in federal funding and a 3.5% decline in state funding (adjusted for inflation) are exacerbating budget pressures.
Cunningham noted during the meeting, as quoted by KSTP, that 'we can all agree there are no easy choices this year.'
Board member Doug Huebsch defended the vote, saying, 'Not everyone is going to be happy with this budget… but it is our job and obligation to deliver a budget that's balanced and as fair as possible,' as reported by KSTP.
Low-income students promised protection
Despite the hikes, university leaders stressed that low-income students will not be adversely affected. Thanks to programs like the North Star Promise and sustained scholarship and aid efforts, tuition increases will be offset for qualifying students. As per KSTP, the administration reassured the public that affordability remains a priority.
The budget will take effect starting fiscal year 2026, as the University of Minnesota moves to navigate what leaders described as one of the most challenging periods for higher education in recent memory.
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