The Rutgers University Board of Governors has approved a $6.2 billion operating budget for the 2026-2027 academic year, pairing a modest 3% tuition increase with cost-containment measures to keep student costs below the rate of inflation.

The balanced budget for the fiscal year that began July 1, 2026, comes as higher education institutions nationwide face financial headwinds, including federal funding uncertainty, rising operating costs and enrollment challenges. To bridge the gap without shifting the burden entirely onto students, Rutgers is using a university-wide hiring freeze and other expense-reduction strategies.

The 3% tuition increase represents the university’s lowest rate hike in four years. Here is how the annual changes break down for typical full-time undergraduate arts and sciences students:

In-state tuition will rise by an average of $448, from $14,933 to $15,381. Out-of-state tuition will increase from $39,649 to $40,839. Mandatory fees will go up by an average of $117 for both in-state and out-of-state students, from $3,891 to $4,008. Housing and dining will increase by an average of 4%, from $15,332 to $15,945.

Despite the increases, university leadership emphasized a continued push for affordability. Under income-gap programs like the Scarlet Guarantee in New Brunswick, RU-N to the TOP in Newark and Bridging the Gap in Camden, undergraduates whose families have an adjusted gross income of $65,000 or less will pay $0 in tuition and mandatory fees. Nearly 80% of Rutgers undergraduates received some form of financial aid during the 2025-2026 academic year.

The approved budget distributes funds across the university’s core missions. Classroom instruction and academic support account for 33.1%; health care and public service, 21.1%; administration and operations, 15.8%; student scholarships, financial aid and services, 10.8%; sponsored research, 10.4%; auxiliary enterprises such as housing, dining and parking, 5.4%; and Division I athletics, 3.4%.

To fund these expenses, Rutgers relies on several major revenue streams, led by student tuition and fees at 28.8%. State funding from New Jersey makes up 21.9%, followed by patient care services at 19.8% and sponsored research at 12.3%. The remaining funds come from federal aid, gifts, endowments, investments and auxiliary services.