U of M tuition hike proposal tops 6.5% while cutting academic services

MINNEAPOLIS (FOX 9) - Eyeing an upcoming budget approval, University of Minnesota regents are proposing a 6.5% tuition increase for undergraduate, in-state students at both its Twin Cities and Rochester campuses.

University of Minnesota budget increases

What we know:

On Thursday, the University of Minnesota Board of Regents Finance and Operations Committee will review the U’s recommended fiscal 2026 operating budget and hear public comments.

A meeting to discuss the proposal can be found in the player above.

According to university officials, the proposed budget focuses on "strategic investments in mission-critical areas" while also dealing with financial constraints such as rising costs and cuts in federal funding. State funding is likely to result in a 3.5% decrease when adjusted for inflation, officials have said.

The recommended operating budget anticipates approximately $5.1 billion in revenue, while dealing with $5.1 billion in expenses. Within the expenses includes a 4% pay increase for faculty and staff.

The proposed budget also includes a "programmatic scope reduction" of 7% to "align spending priorities with projected revenues," according to university officials.

The university’s previous budget increased tuition by 1.5% to 4.5%.

U of M tuition costs

Dig deeper:

Undergraduate resident and nonresident rates would also increase by 4% on its Crookston and Duluth campuses, and by 5% on its Morris campus.

The Twin Cities campus’ tuition hike would bring tuition costs to $16,132 a year for undergraduate residents of Minnesota.

Tuition costs elsewhere in the system range from $12,116 at Crookston to $19,224 at Duluth for nonresidents.

The changes would bring tuition for out-of-state undergraduates at the Twin Cities campus to $39,018.

What they're saying:

"The University of Minnesota is not immune to the unprecedented challenges facing higher education. We are making tough, strategic decisions to protect our mission and secure our future," said President Rebecca Cunningham. "Our best response is to come together in support of the University of Minnesota's mission with a focus on financial sustainability and strategic investment. Maintaining the status quo is not an option. Our response to this historic time will be multifaceted as we remain diligent in efforts to limit expenses and thoughtful in formulating new strategies that prioritize our core mission, and assess our assets to best position our university for success for generations to come."

"If approved by the Board of Regents, this budget moves us in the right direction. But it doesn’t eliminate risk," said Gregg Goldman, executive vice president for finance and operations, in a statement prior to the meeting. "Our challenges are real, and the decisions we make now must position the University for long-term strength."

University officials previously said that tuition hikes could range from 3.5% to 9% during the current budget process.

What's next:

Public comment on the proposed budget will be accepted online through June 17.

The board will then hold a vote on the following day.