The University of Minnesota Board of Regents voted Wednesday to cut 7% in academic spending and increase tuition for fiscal year 2026.

The Board of Regents passed the budget proposal in a 9-3 vote. This is the largest tuition hike in more than a decade.

“Not everyone is going to be happy with this budget. That’s part of being an elected official, that’s what we have to do, but it is our job and obligation to deliver a budget that’s balanced and as fair as possible,” Doug Huebsch, who sits on the U of M Board of Regents, said during the meeting.

During last week’s public hearing, students and faculty voiced their concerns in front of the board regarding how it could impact employees and the quality of education.

University leaders call the current financial landscape stark and uncertain.

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They’re facing as much as a 30% reduction in federal funding and a 3.5% drop in state funding when adjusted for inflation.

The change would impact undergrad students at the Twin Cities campus by raising tuition by $984 for Minnesota residents and $2,722 for out-of-state students, a 6.5% to 7.5% increase, respectively.

It will increase for grad students across the board by $1,300 for residents and $2,340 for out-of-state students.

Officials said the only way forward is to build a safety net to ensure financial stability and strategic investments. This would also include a 7% cut in academic spending.

“We can all agree there are no easy choices this year, as I stated last week, higher education is facing unprecedented challenges, the University of Minnesota is not immune to so we have to make difficult decisions,” Rebecca Cunningham, U of M president, said during the meeting.

The university president told the board that low-income students will not be impacted because of the North Star promise, as well as their history of supporting scholarships and financial aid.