A Wave of Budget Cuts at Top U.S. Research Universities: What’s Going On?

In recent weeks, many prestigious research universities across the United States have simultaneously announced large-scale budget-tightening measures. The reasons include reduced federal funding, a decline in international student enrollment, rising operational costs due to inflation, and stagnant state funding that hasn't kept pace with growing expenses. As a result, numerous institutions have been forced to lay off staff, raise tuition, and even shut down certain academic programs.

Notably, just in the past few days, six major universities have confirmed plans for extensive budget reductions. Here’s a closer look at each school’s situation:

Temple University

Temple, a large public university in Philadelphia, is facing a projected $60 million budget deficit for the upcoming fiscal year. Since 2017, the university has lost nearly 10,000 students—equivalent to $200 million in lost tuition revenue. While first-year enrollment is expected to increase next year, it’s not enough to significantly improve the overall financial picture. The school has been using reserve funds to offset the current shortfall—an unsustainable strategy. Academic departments have been ordered to cut payroll expenses by 5%, which will lead to job cuts. Senior leadership, including deans, will forgo pay raises.

Cornell University

Cornell, an Ivy League university, is undergoing a serious financial crisis. The university has lost hundreds of millions of dollars due to federal research contract cuts. Financial aid and healthcare reimbursements are also at risk. Potential increases in taxes on endowments are adding further strain.
The university has announced it will:

• Restrict new hiring,

• Cut non-essential spending,

• Reduce staff through voluntary departures or layoffs.

University of Kansas

The university is facing serious financial challenges in the coming years. By 2026, the main campus in Lawrence is projected to have a $22.3 million deficit, while KU Medical Center is expected to be short by another $4 million. Without timely intervention, the medical center’s losses could reach $31 million by 2027. Internal documents warn that the entire KU system could face a $117 million shortfall by 2029 if no action is taken.
In response, KU leadership is committed to improving operational efficiency, increasing revenue, and cutting operational expenses by 5% next year to regain long-term financial stability.

University of Minnesota

The University of Minnesota is facing a $115 million shortfall. Of that, $40 million is due to reduced federal funding, with the remainder caused by inflation and lagging state support.
In response, the university is taking drastic steps:

• Increasing tuition by up to 7.5% for certain student groups,

• Cutting 7% of its academic programs, affecting approximately 350 jobs.

University of Maryland

The University System of Maryland will operate with a 7% smaller budget in 2026—about $155 million—following a 4% cut this year. System Chancellor Jay Perman stated that some member campuses may have to resort to difficult decisions like temporary closures, furloughs, or pay cuts.

University of Nebraska

The University of Nebraska system is entering its third consecutive year of budget cuts.

• In 2026, an additional $20 million in cuts are expected.

• In 2025: $11.8 million cut.

• In the previous year: $30 million cut.
  Although the university requested a 3.5% increase in state funding, only a 0.625% increase was approved, leaving a significant budget gap. To compensate, the school is considering a 5% tuition hike and urging disciplined, transparent financial management—while still maintaining its commitment to educational quality and student access.

What Does This Mean for Vietnamese Students Planning to Study in the U.S.?

In the context of widespread budget cuts at U.S. universities, scholarships for international students may decrease or become more competitive, while tuition is likely to rise in the coming years. Certain academic programs—especially in the humanities and social sciences—may be downsized or discontinued due to a lack of resources. Therefore, students should thoroughly research each university—not only its reputation but also its current financial stability and long-term commitment to student support.

This article was adapted from: “Budget Cuts Announced By Six More Major Research Universities” by Michael T. Nietzel.

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