The state budget includes modest increases for Oregon’s public universities. However, those investments fall short of what is needed to keep pace with actual operating costs at the University of Oregon. The 2025 legislative session update provided by Government and Community Relations outlines the state’s investments in higher education and student financial aid, newly funded capital projects and other results from the Oregon Legislature. The legislative session adjourned June 27, marking the end of a challenging six months underscored by difficult funding decisions and uncertainty at the federal level. The report is meant to inform, not signal new pressures beyond those already shared.  

“State funding is one of the most important tools public universities have to protect affordability and make sure students get the support they need to succeed. This year’s increase helps, but it doesn’t reflect the actual costs of running a university,” said Trent Lutz, associate vice president for state affairs. “When funding comes in below what’s needed to sustain core operations, it adds real pressure on the institution and the students and families we serve. It’s one of several factors contributing to the university’s current budget shortfall and makes it harder to protect students from the impact.” 

At face value, the Public University Support Fund, the primary source of state funding for public university operations, is set to increase by 6.8 percent for 2025-27. However, the first-year funding increase — what universities actually receive in fiscal year 2026 — is just 2.8 percent over the current year, below the university’s actual growth in costs. Once that funding flows through the state’s distribution formula, the UO receives by far the lowest per-student funding of any public university in Oregon.  

“While the university tries to plan conservatively, low state funding makes it much harder to protect students from the impact, whether through higher tuition, reduced services or both,” Lutz said.  

For more information about impacts from the legislative session, visit the Government and Community Relations website. Information about the university’s structural budget planning is available on the Strengthening UO website.