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The basics:

• Rutgers approves $5.9B operating budget for FY 2026
• In-state tuition going up 5%; out-of-state tuition rising 6%
• Average student fees increase by $185 annually

The Rutgers Board of Governors approved a $5.9 billion university operating budget July 8. The plan includes a 5% and 6% tuition increase for in-state and out-of-state students, respectively, for the 2025-2026 academic year. 

This means that for a typical full-time arts and sciences undergraduate who is a New Jersey resident, tuition will increase on average $711 for the academic year to $14,933, according to the university. 

Tuition for out-of-state students will rise from $33,734 to $35,758. 

While fees vary by program, average mandatory fees are estimated to increase by about $185 annually for all students. 

“The Board of Governors remains deeply committed to ensuring that Rutgers delivers a world-class education that is both accessible and affordable for our students,” said Rutgers Board of Governors Chair Amy Towers. “At the same time, we must address the significant fiscal challenges facing higher education nationally and take responsible steps to safeguard the university’s long-term financial health. 

“This budget reflects a difficult but necessary balance between those goals,” Towers added. 

Access to education 

“As federal funding disruptions impact universities, Rutgers remains focused on improving student access and affordability,” the board said in a statement. 

To assist students, the board highlighted income gap-bridging programs, such as the Scarlet Guarantee in New Brunswick, RU-N to the TOP in Newark and Bridging the Gap in Camden. About 75% of Rutgers undergraduates received some form of student financial aid in the 2024-2025 academic year, the board added. 

Last year, the university approved a $5.6 billion operating budget, supported in part by a 4% increase in tuition and fees. 

Current challenges

The board noted that the budget for the fiscal year beginning July 1, 2025, reflects: 

• Uncertainty around federal funding 
• A rise in operating costs associated with increases in negotiated salaries and fringe benefit expenses 
• Inflationary increases across all non-personnel costs – including technology, supplies, services and capital construction 
• Need-based student financial aid 

Rutgers also noted that while the final state budget restored nearly all of $65 million in proposed cuts to the university, “the state’s share of overall budget revenues has declined to 18% for FY 2026, down from about 20% in each of the past three years.” 

In addition to state funding, revenues to fund the university’s budget come through: 

• Tuition and fees 27.7%
• Patient care services 20.4%
• Sponsored research 14.1%
• Miscellaneous sources (housing, dining, parking services, student aid, athletics, gifts and donations, and endowment and investment income) 19.8%

The board said the university’s “significant expense reduction efforts” included a 4% cut to central office budgets for the upcoming year. 

“My colleagues developed a budget that sustains Rutgers’ momentum as an engine of social mobility by prioritizing resource development to deliver student financial aid at scale. This budget achieves this goal despite uncertainty and intense cost-increase pressures,” said newly appointed Rutgers President William Tate IV. “We must continue making difficult decisions to ensure the long-term sustainability of this capacity to support our students.”