Rutgers Board Approves $6.2B Budget

On Jul 9, 2026

The Rutgers Board of Governors approved a $6.2 billion university operating budget that includes a 3% tuition increase for in-state and out-of-state students for the 2026-2027 academic year — its lowest increase in four years.

The budget for the fiscal year that began July 1, 2026, is balanced as Rutgers, like all universities, faces uncertainty around federal funding, enrollment challenges, and rising operating costs, including increases for need-based student financial aid, negotiated salaries and fringe benefit expenses, and nonpersonnel costs — including utilities, technology, equipment, facilities and supplies. Through cost-containment and expense-reduction strategies, including a hiring freeze, the budget keeps the tuition well below the rate of inflation.

“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 F. Tate IV said. “This budget positions Rutgers to move forward from a foundation of fiscal responsibility and strategic confidence and places priority on providing the essential resources, teaching and research opportunities for our students to thrive and succeed.”

The budget also reflects Rutgers’ commitment to improving student access and affordability. Through income gap-bridging programs, including the Scarlet Guarantee in New Brunswick, RU-N to the TOP in Newark and Bridging the Gap in Camden, students with family adjusted gross income (AGI) up to $65,000 pay zero for tuition and mandatory fees.

Through these and other programs, nearly 80% of Rutgers undergraduates received some form of student financial aid in the 2025-2026 academic year. Over 60% of undergraduates received at least one form of need-based aid and nearly 38% qualified for Federal Pell Grants.

This year, tuition for a typical full-time arts and sciences undergraduate who is a New Jersey resident will increase on average $448 for the academic year from $14,933 to $15,381. Fees vary by program, but average mandatory fees are estimated to increase by about $117 annually for in-state and out-of-state students from $3,891 to $4,008. Tuition and mandatory fees for a typical full-time arts and sciences out-of-state undergraduate student will rise from $39,649 to $40,839. On average, housing and dining expenses will increase 4% — from $15,332 to $15,945.

“The Board of Governors has approved a balanced budget that reflects Rutgers’ values and limits tuition and fee increases to below the rate of inflation. It 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,” said Board of Governors Chair Amy L. Towers. “Thanks to strong and continued support from Gov. Sherrill and the State Legislature, we are able to expand financial aid and preserve the programs that make Rutgers a leading center for academic excellence, research and public service, while delivering a world-class education accessible to the students and families we serve.”

“The Board will continue to work with President Tate and the university community to expand opportunity, advance discovery and drive innovation and economic activity throughout New Jersey for generations to come,” Towers said.

The balanced budget distributes funds across Rutgers as follows:

33.1%: classroom instruction and academic support
21.1%: health care 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 largely through tuition and fees (28.8%); the State of New Jersey (21.9%); patient care services (19.8%); sponsored research (12.3%); federal student aid, gifts, endowments and investment income (10.2%); and miscellaneous sources, including housing, dining and parking services (7%).

“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.

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