Legislative session outcomes and measures for Fiscal Year 2027

Dear University of Maryland community,

On April 13, 2026, the Maryland General Assembly finalized the Fiscal Year 2027 (FY27) state budget. In delivering the $70.8 billion operating budget, the Governor and Legislators closed a projected $1.5 billion deficit, and the state continues to invest in higher education. The budget provides a 1.5 percent cost-of-living adjustment for regular faculty and staff.
 

FY27 State Investments in the University of Maryland, College Park (UMD)

For FY27, the State of Maryland budget will provide $871.9 million to UMD in annual operating funds, which will help us keep a world-class UMD education affordable and accessible for our students. In addition, several programs will receive investments, including sustainability initiatives, civic engagement and a student-mentored certificate program for adults with intellectual disabilities. Capital funding from the state will benefit our Health and Human Sciences complex, graduate student housing, quantum initiatives and the soon-to-open Zupnik Hall. We are grateful for these investments, and further details can be found in Maryland Today.

We thank Governor Wes Moore, Senate President Bill Ferguson, House Speaker Joseline Peña-Melnyk and members of the General Assembly for their continued support of higher education in Maryland. We also want to thank our Government Relations team, including Virginia Meehan, Jazz Lewis and Molly McKee-Seabrook, for their advocacy in Annapolis on behalf of our institution and our community.
 

Budget Impacts

While the state continues to recognize higher education’s positive impact on the public good, the state budget also includes base appropriation reductions to the University System of Maryland, which are passed down to institutions. Combined reductions across FY25–FY27 total $104 million in cuts to the UMD base budget—more than a 10 percent reduction in state support.

Compounding these base budget cuts are reductions and delays in federal research funding and the impact on indirect cost recoveries. We are also seeing downward pressure on investment earnings, increased utility costs and added costs associated with essential infrastructure. 

This combination of financial pressures requires that we exercise even greater fiscal restraint across the university.
 

Budget Response and Operational Actions

In the preparation of last year’s UMD Fiscal Year 2026 budget, all units were asked to evaluate their budgets to identify non-personnel reductions such as travel, professional and contractual services, supplies and equipment. In addition, units were requested to analyze vacant positions and eliminate those deemed not essential. In addition to reducing expenditures, the campus made adjustments to tuition and increased enrollment, while protecting our commitment to access and affordability for those in need. Unfortunately, the many measures that we have already taken to curb costs and spending are not enough to close the gap.

As we look ahead to FY27 and beyond, the anticipated continuation of budget pressures at the state level, uncertainty around reduced federal funding for research, and increased expenses require the university to make difficult, yet fiscally prudent, decisions. So, effective today:

• A hiring freeze for all staff positions is in place, and no new positions may be created at least through 6/30/2026.
  • Any action that has reached the offer phase may move forward, but those in earlier stages of the process must pause until FY27.
  • Positions fully funded by restricted, external funds (grants, gifts, etc.) are not subject to the freeze.
• Non-personnel expenses will be limited as follows:
  • Staff travel will be restricted in accordance with applicable university policies and guidance.
  • Professional and contractual service procurements will require CFO approval via verification of funding in the FY27 budget to move forward.
• Capital expenditures will be curtailed to include only projects that address continuity of operations, health and safety, compliance with laws and regulations, and critical mechanical systems.

Position eliminations will also be required. The Vice President for Finance and Chief Financial Officer (CFO) and Deputy CFO will work with each division to perform a comprehensive evaluation of vacant and filled positions to determine which workforce reductions are necessary. We expect to eliminate as many as 150 positions through vacancies, retirements and layoffs. The exact number of layoffs will depend on vacant positions that can be eliminated and forthcoming retirements. Regardless of the final form our actions ultimately take, we will adhere to all applicable laws, State/System policies and employee bargaining Memoranda of Understanding as we work through this process.

This is not an easy message to send, and we know that this news causes concern for all of us. Our people are the foundation of this university, and the prospect of workforce reductions is difficult. We recognize the impact these decisions will have on our community. As we move forward, we will continue to pursue additional strategies to reduce costs and strengthen revenues. We are grateful for your continued professional excellence and dedication, which will be essential to our ability to navigate these financial difficulties.

Sincerely,