The University of Nebraska–Lincoln is moving forward with budget reductions as it confronts rising costs, declining net tuition and uncertainty in state funding.
Chancellor Rodney D. Bennett announced the measures in a March 4 message to the campus community, outlining steps to address the university’s structural deficit. Immediate actions include:
- An extension of an existing hiring freeze, allowing only essential positions to be filled;
- A $5 million permanent budget reduction for the current fiscal year; and
- Preparing for further budget reductions up to $20 million for the 2025-26 fiscal year, which begins July 1.
“A reduction of this magnitude must be driven by UNL’s strategic priorities, informed by performance metrics, and aligned with the NU system’s developing strategic plan and the needs of the state of Nebraska,” Bennett said.
Financial uncertainties extend beyond the state, as university leaders continue to monitor potential federal policy changes that could impact budget levels. In light of these challenges, Bennett said the university has decided to halt new awards for the Grand Challenges Catalyst Competition in 2025, redirecting those funds to support essential research infrastructure and services. Existing multi-year projects awarded in previous competition cycles will continue to receive funding, contingent upon available resources.
These latest measures follow a series of recent budget cuts, including a $12 million reduction finalized in January 2024 and a $10.8 million cut in June 2023. Chancellor Bennett acknowledged the toll that continued reductions place on faculty, staff and students.
“I recognize the significant sacrifices we will have to make,” Bennett said. “I also sympathize with the strain this places on programs and services, as well as our people who are being asked to do more with less yet again.”
While cost-cutting remains necessary, Bennett stressed that revenue growth is equally vital to securing UNL’s future. He called for increased student enrollment, stronger advocacy with state leaders, enhanced federal partnerships, and expanded philanthropic support from alumni and donors.
“Our challenges are significant, but every day I see and hear new examples of how our students benefit from your expertise, enthusiasm and passion,” Bennett said, encouraging the community to remain focused on UNL’s mission as Nebraska’s flagship land-grant research institution. “I am grateful to be here with you and to push forward for our current and future students, and for the future of the state of Nebraska.”
Additional details regarding the budget reductions will be announced. Bennett’s complete message is available to campus here.
