Rutgers University’s Board of Governors on Tuesday approved a $5.9 billion operating budget for the 2025–2026 academic year, including a 5% tuition increase for in-state students and a 6% increase for out-of-state students.
The budget, which began July 1, is aimed at balancing rising operational costs and uncertain federal funding while maintaining financial aid programs that support affordability and access for students across all campuses.
Tuition for in-state undergraduates enrolled full-time in arts and sciences programs will rise from $14,222 to $14,933. For out-of-state students, tuition will increase from $33,734 to $35,758. Mandatory fees are projected to rise by about $185 annually for all students.
Despite the increase, Rutgers is expanding its income-based aid initiatives. Students with family adjusted gross income (AGI) up to $65,000 will continue to pay no tuition or mandatory fees under programs such as the Scarlet Guarantee, RU-N to the TOP, and Bridging the Gap. For new students with family AGIs between $65,001 and $80,000, tuition and fees will be capped at $3,000. Those in the $80,001 to $100,000 range will pay no more than $5,000.
“My colleagues developed a budget that sustains Rutgers’ momentum as an engine of social mobility by prioritizing resource development to deliver student financial aid at scale,” said Rutgers President William F. Tate IV.
The budget also includes a 4% reduction to central office budgets and reflects increased costs from negotiated salaries, fringe benefits, and inflation across technology, services, and infrastructure. About 75% of Rutgers undergraduates received financial aid during the 2024–2025 academic year.
The majority of the budget—76%—will support student instruction, aid, public service, and research. Administration, maintenance, and operations account for 16%, while housing, dining, and parking services make up 5%. Division I athletics will receive 3% of the total budget.
Rutgers’ revenue sources include tuition and fees (27.7%), patient care services (20.4%), state support (18%), sponsored research (14.1%), and miscellaneous sources including donations and investment income (19.8%).
“The Board of Governors remains deeply committed to ensuring that Rutgers delivers a world-class education that is both accessible and affordable for our students,” said Board Chair Amy L. Towers.
The budget comes as New Jersey’s final state spending plan restored nearly all of $65 million in proposed cuts to Rutgers. Still, the university’s share of state funding has declined to 18%, down from about 20% in recent years.
Rutgers’ new budget raises tuition but expands financial aid to shield lower-income students from rising costs.