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U of M Looking to Reduce Budget by $225 Million

University leaders say the cuts will be spread across all campuses as the school shifts to earlier, two-year budget planning.

  • On Thursday, University of Minnesota President Rebecca Cunningham announced a $225 million budget reduction over the next two years, acknowledging there will be "difficult choices and conversations ahead."
  • Facing long-term financial headwinds where operating expenses outpace revenues, leadership framed the cuts as an "institutional inflection point" rather than a temporary setback.
  • The reduction represents 12% to 15% of the university's allocated operating revenue and affects all five campuses serving 60,000 students across the state.
  • Administrators are shifting from a one-year to a two-year planning cycle for increased foresight, while the University Senate meets today at Coffman Union to discuss the cuts.
  • Higher education is grappling with a "demographic cliff" following the Great Recession of 2008, as declining birth rates shrink the pipeline of traditional 18-year-old applicants nationwide.
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U of M looking to reduce budget by $225 million

The work of cutting the budget will fall on all campuses, including UMR.

·Cherokee County, United States
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Fox 9 broke the news in Minneapolis, United States on Thursday, September 24, 2026.
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