Princeton trustees set 2026-27 budget that reflects sharp focus on core mission
Princeton trustees have adopted a 2026-27 budget that supports continued commitments to world-class teaching, research and affordability, while also reflecting the University’s shift from a decade of historic growth to a period of focus on its core mission.
The fiscal year 2027 budget plan totals $3.407 billion and is a 2.1% increase over the previous year. That is the smallest annual budget increase at Princeton in many years, aside from two years when operating expenditures declined during the COVID-19 pandemic.
The trustees approved the 2026-27 operating budget based on recommendations from the Council of the Princeton University Community (CPUC) Priorities Committee.
“This year’s budget plan supports Princeton’s priorities of access and affordability, academic excellence and academic freedom while also beginning the process of adapting to a slower rate of revenue growth,” Provost Jennifer Rexford said.
In 2026-27, the total undergraduate financial aid budget will increase by 5.4% to $342 million. Approximately 70% of undergraduates are expected to receive financial aid, more than 60% of which is supported by dedicated University endowments. The graduate student stipend rate will increase by 2.25% next fiscal year.
Although Princeton’s financial position remains strong, the University must find ways to pursue its mission more efficiently, as President Christopher L. Eisgruber explained in his recent State of the University letter.
The University anticipates implementing further cost savings measures as a response to federal cuts to research funding, reduced long-term assumptions for endowment performance and rising costs for employee health benefits.
Princeton’s endowment supports almost every aspect of University operations, including faculty and staff salaries, financial aid, graduate stipends, research equipment and construction projects. For the 2026-27 year, endowment payouts are expected to cover 65% of the University’s overall net operating budget.
Future University cost savings efforts may include the reimagination of campus services, changes to the University’s workforce, and the consolidation or elimination of some functions. While the impacts will vary, most departments will see their budgets rise less than the rate of inflation for the next several years.
The University will implement cost savings measures while continuing to seize new opportunities and invest in its priorities of teaching excellence, world-class research and generous financial aid.
“The budget outlook calls for changes and some tough decisions but at a manageable scale and pace — changes that should not deter or deflect us from our mission, values and priorities,” the Priorities Committee wrote in its report to trustees.
