The University of Oregon is cutting about $65 million from its budget after lower-than-expected enrollment of out-of-state first-year students. President Karl Scholz said the university “will need to cut around $65 million from our budget to avoid an ongoing annual budget deficit in the coming years,” The College Fix reported. UO joins a run of schools where missed enrollment targets have opened budget holes this year.
The cuts reached campus housing. UO closed Barnhart Hall and its dining facility for the 2026-27 academic year, and Riley Hall will house students only if overflow space is needed, according to KVAL.
The university expects about a 10% drop in students living on campus, adding pressure to the room and board costs that housing departments rely on.
Why It Matters
Tuition accounts for roughly 80% of UO’s education and general fund, and out-of-state students made up 47.1% of the student body in fall 2025, according to Higher Ed Dive. Nonresidents pay a much higher price than Oregon students, so a smaller out-of-state class removes a large share of revenue. That out-of-state tuition premium is what makes UO’s budget so sensitive to who enrolls.
University housing staff were told to expect department budget cuts of 8% to 10%, KEZI reported. Staff from both halls are being reassigned, though the university said it can’t guarantee there will be no layoffs. Families watching for trouble at a school can check these warning signs that a college is under financial strain.
The Cuts So Far
- $65 million: The reduction target to avoid an ongoing annual deficit
- Spending limits: A hiring freeze, a compensation freeze and caps on nonessential travel, announced in May 2026
- Barnhart Hall: Closed for 2026-27, along with its dining facility
- Riley Hall: Held as overflow housing only
- Earlier round: $30 million in cuts and more than 100 layoffs the previous year, per Higher Ed Dive
How This Connects
Oregon’s problem looks like others tracked in 2026. The University of Denver eliminated five departments after a $30 million shortfall, schools have cut jobs and degrees as international graduate students disappear, and eight colleges are closing outright this year.
What’s Next
UO is still building two new residence halls and has not said whether the dormitory closures are permanent. The Board of Trustees’ tuition vote for 2027-28 and fall enrollment numbers will be the two figures that show whether cuts alone are enough to close the gap. Students from neighboring states can also check whether tuition reciprocity agreements lower their cost at Western schools.
