Board of Governors approves $6.2B budget, 3% tuition increase for NJ students, institutes hiring freeze

Rutgers University has approved a $6.2 billion budget for the 2026-2027 school year on Thursday amidst widespread concern around federal funding, increasing tuition by 3% but keeping budget hikes under the inflation rate.

Students will see a 3% tuition hike across the board regardless of in or out-of-state status. This means a typical School of Arts and Sciences in-state undergraduate would see a $448 increase in tuition, from $14,933 to $15,381, while an out-of-state student for the same program (with mandatory fees) would see a $1,190 increase in tuition, from $39,649 to $40,839. The 3% increase is the lowest increase in four years.

Mandatory fees would increase by 3%, or on average $117 for both in-state and out-of-state students, from $3,891 to $4,008. Dining and Housing are to increase by 4% on average, from $15,332 to $15,945.

The press release also highlighted “Rutgers’ commitment to improving student access and affordability,” noting that students with family adjusted gross incomes under $65,000 would pay zero tuition or fees, as well as spotlighting programs that bridge income gaps across the three Rutgers campuses, such as Scarlet Guarantee.

In the statement, President Tate said “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.”

“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,” Tate continued.

The announcement cited issues tackled such as “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.”

Rutgers said it balanced these issues through “cost-containment and expense-reduction strategies,” which included “a hiring freeze” to keep the tuition increase well below the rate of inflation.

In an email to the University community, President Tate gave details regarding the hiring freeze, which will be implemented for the new fiscal year. “The freeze includes a review process to allow exceptions for critical positions, while searches already underway and Chancellor-approved searches will continue as planned,” the email said. “Faculty hiring decisions will continue to be managed by the leadership of the Chancellor-led units and remain subject to Chancellor approval.”

Tate further said that “additional information on the hiring freeze and a related personnel action freeze will be provided in the weeks ahead,” and that “these decisions were not made lightly, but they are necessary to strengthen the university’s long-term financial sustainability.” Tate also said that Rutgers would be “comprehensively reviewing all vendor and service agreements to identify unnecessary spending,” looking for better deals and would renegotiate and rebid contracts where possible.

Tate said this attitude would extend to Rutgers Athletics, where “Athletic Director Keli Zinn and her team are eliminating wasteful spending, improving internal controls, and establishing a task force to expand and diversify revenue streams.” This follows criticism of Rutgers’ athletics program following a lawsuit over the $516m deficit in Rutgers athletics since joining the Big Ten.

In his email, Tate thanked Governor Mikie Sherrill for and the New Jersey Legislature for investment into Rutgers, which covered the addition of 800 new positions at Rutgers, the first of its kind since 2014, saving the school $40 million.

Tate also said that he was “happy” to report that the University has had productive discussions with the unions, thanking individuals involved in those discussions. He said that he was “confident that we will arrive at agreements that will help us advance shared goals for Rutgers’ future.” In the Spring 2026 semester, there had backlash over the firing of adjuncts, which were reversed. WRSU had also interviewed AAUP-AFT President Heather Pierce about the contract negotiations as well as the reversal of the cuts.

Board of Governors Chair Amy L. Towers said in the budget release that “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.”

“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,” Towers said.

The balanced budget distributes across Rutgers as follows:

31.1%	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

Around half the revenue for the budget comes through tuition and fees (28.8%) and the State of New Jersey (21.9%). The rest comes through patient care services (19.8%), sponsored research (12.3%), federal student aid gifts, endowment and investment income (10.2%), and other sources which includes housing, dining and parking services (7%).

“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.

“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, closing out the budget statement.

The full budget statement is available here, and Tate’s message to the Rutgers community can be found here.