The University of Pittsburgh Board of Trustees on July 11 approved a $3.2 billion operating budget and a $267 million capital budget for fiscal year 2026, funding priorities that trustees and university leaders said balance fiscal discipline with investments in students, research and facilities. The board recorded the action by voice vote with no recorded oppositions or abstentions.

Board finance chair Jack Tague, presenting the recommendation, said the committee was "recommending a balanced budget." Chancellor Joan Gabel and Chief Financial Officer Duane Pinckney described the budget's main elements and contingency planning before the full board vote.

The budget documents the university's priorities and assumptions: a projected research base of $1.2 billion for FY26; nearly $315 million in institutional financial aid; modest tuition increases of 2% for in‑state undergraduate and graduate students and 4% for out‑of‑state undergraduates and graduates; a 1% increase at regional campuses after two years of flat tuition; a 2.5% salary increase pool for unionized and nonunionized faculty and staff; and a $267 million capital budget focused on preserving campus infrastructure and completing projects already underway. Pinckney summarized the proposal in a single sentence: "The University of Pittsburgh's proposed operating budget for fiscal year 20 26 is $3,200,000,000."

Trustees pressed university leaders on planning for potential reductions in federally recovered indirect costs for research. Pinckney and other presenters described contingency measures that include sharing laboratory space and core facilities, exploring ways to move some compensation to direct charges on grants where appropriate, using reserves in a targeted fashion to avoid abrupt programmatic disruptions, and pursuing alternative funding sources. Pinckney told the board these indirect costs are "real costs" the university incurs — utilities, lab maintenance, IT support, compliance and other campuswide services — and said the institution is planning now to mitigate potential funding changes.

The budget also reflects services and student life adjustments tied to a larger incoming class: housing rates on the Pittsburgh campus will rise by about 6.7% on average, meal plans by about 4%, and mandatory fees will increase in areas such as transportation, wellness and technology. University leaders said they have been signing block leases and adjusting on‑campus room configurations to accommodate a record volume of applications and an expected large first‑year class.

Officials described a shift from a hiring freeze to a controlled hiring process: while the university will still carefully review vacancies, leaders said they will approve strategic hires needed to support enrollment and mission priorities. Pinckney said responsibility centers will reallocate resources where possible and that human resources will coordinate enterprisewide oversight of hiring.

The board approved the FY26 operating and capital budgets following discussion and a motion from the floor. Trustees and administrators portrayed the plan as a mix of "belt tightening" and targeted investment designed to protect academic quality, support student success and sustain research capacity while the university navigates demographic and federal funding headwinds.

Looking forward, trustees said the finance committee will continue to monitor developments around federal research funding and other external risks and that administration will report back to the committee and full board as contingencies evolve.