The basics:

• Rutgers approves $6.2B operating budget
• Tuition will increase 3% for the 2026-27 academic year
• Budget includes hiring freeze, cost-cutting measures
• Nearly 80% of undergraduates receive financial aid in 2025-26 academic year

The Rutgers Board of Governors approved a $6.2 billion university operating budget July 7. The spending plan includes a 3% tuition increase for in-state and out-of-state students for the 2026-2027 academic year.

Rutgers added that this was the lowest rate increase in four years. Last year’s budget included a 5% and 6% tuition increase for in-state and out-of-state students, respectively.

The board also noted the budget features cost-cutting strategies, including a hiring freeze.

“At a time when colleges and universities across the country continue to face significant financial headwinds and uncertainty, this balanced budget demonstrates disciplined stewardship and thoughtful planning, while ensuring our university does not sacrifice the high quality of education our students deserve,” President William Tate IV said in a statement.

What this means for students (on average):

• In-state | $448 tuition increase
  For a typical full-time arts and sciences undergraduate who is a New Jersey resident, from $14,933 to $15,381
• Out-of-state | $1,190 tuition and fee increase
  For a typical full-time arts and sciences out-of-state undergraduate student, from $39,649 to $40,839
• Average mandatory fees | $117 increase
  For in-state and out-of-state students, from $3,891 to $4,008
• Housing and dining expenses | $613 increase
  From $15,332 to $15,945, a 4% bump

Facing ‘fiscal realities’

Board of Governors Chair Amy Towers said the tuition increases are “below the rate of inflation.”

“[The budget] addresses the fiscal realities facing higher education – from rising operating costs to uncertainty in federal funding – with a disciplined focus on long-term financial strength,” added Towers, a recipient of the inaugural NJBIZ Board Leadership Awards.

Towers also thanked Gov. Mikie Sherrill and the state Legislature for enabling the university to expand financial aid.

Nearly 80% of Rutgers undergraduates received some form of financial aid in the 2025-2026 academic year, the university said.

The recently signed Fiscal Year 2027 state spending plan includes appropriations of $2.2 billion in direct support for higher educational services, according to an April legislative analysis of the state budget.

The breakdown

Rutgers’ balanced budget fund distribution across the university:

• 33.1%: classroom instruction and academic support
• 21.1%: healthcare and public service
• 15.8%: administration and operations
• 10.8%: student scholarships, financial aid and student services
• 10.4%: sponsored research and other sponsored programs
• 5.4%: auxiliary enterprise, including housing, dining, and parking
• 3.4%: Division I Athletics

Revenues to fund the university’s budget come through:

• 28.8%: tuition and fees
• 21.9%: State of New Jersey
• 19.8%: patient care services
• 12.3%: sponsored research
• 10.2%: federal student aid, gifts, endowments and investment income
• 7%: miscellaneous sources (including housing, dining and parking services)

“Achieving this balanced budget required difficult decisions, strategic investments, and the implementation of measures designed to strengthen our long-term financial sustainability while preserving our commitment to academic excellence, student success and our public mission,” Tate said.

Earlier this year, Rutgers released an annual report highlight its $13.3 billion economic impact on New Jersey’s economy in FY 2025.