Princeton University trustees approved a $3.407 billion budget for the 2026-27 fiscal year, reflecting a shift from a decade of growth to a period focused on the university’s core mission, according to a March 31 announcement.
The new budget represents a 2.1% increase over the previous year, marking the smallest annual rise in many years except for two years during the COVID-19 pandemic when expenditures declined. The move comes as Princeton aims to balance continued commitments to teaching, research, and affordability with adapting to slower revenue growth.
Provost Jennifer Rexford said, “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.”
For undergraduates, financial aid will see an increase of 5.4%, totaling $342 million for the coming year. Approximately 70% of undergraduates are expected to receive financial aid next year; more than 60% of this support is funded by dedicated university endowments. Graduate student stipends will also rise by 2.25%. Endowment payouts are projected to cover about 65% of Princeton’s net operating budget in 2026-27.
President Christopher L. Eisgruber noted in his recent State of the University letter that despite Princeton’s strong financial position, greater efficiency is needed due to federal cuts in research funding, reduced long-term endowment performance expectations, and increasing employee health benefit costs.
Future cost-saving measures may include reimagining campus services or consolidating certain functions across departments. Most university departments are expected to see their budgets grow at rates below inflation for several years ahead.
“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,” wrote the Council of the Princeton University Community Priorities Committee in its report.
