UW-Madison cutting budget 5-7% amid federal funding uncertainty, state funding still on shaky ground

MADISON, Wis. (WMDX) – UW-Madison will be cutting its budget by 5-7% next year amid federal funding uncertainty. 

The Trump administration has been targeting university funding through a variety of ways. That includes claiming diversity, equity and inclusion programs are discriminatory and violate students’ civil rights. 

The administration is also cutting reimbursement for indirect costs through the National Institutes of Health, which provides billions in research funding every year. Chancellor Jennifer Mnookin, Provost Charles Isbell Jr. and Vice Chancellor for Finance and Administration Rob Cramer said dropping the reimbursement rate would cost UW-Madison $65-130 million. 

Grants and awards have been canceled or rescinded. Mnookin said at least 90 grant programs have been terminated since President Donald Trump took office. 

Meanwhile, the UW System’s funding from the state is also in question. Republicans in the legislature want an $87 million cut. The System had asked lawmakers for $855 million in additional money. 

Wisconsin already underfunds the university system, compared to the rest of the nation. Wisconsin ranks 44th in the country in state university funding. 

Months ago, Mnookin asked departments to draw up budgets with 5% cuts, and 10% cuts. She announced Monday that the university will move forward with 5% cuts for schools and colleges in 2026. Administrative departments will cut their budgets by 7%. 

“We understand this budget news may be disappointing and concerning, even if it is likely not entirely unexpected or surprising,” Mnookin said in a statement. “Higher education is in the midst of tremendous upheaval. Like our peers, we are not insulated from the impacts.”

Leaders expect some departments could cut their budgets by even more than that just to give themselves some cushion. 

“Every day, the UW–Madison community comes together to offer a first-rate education, to pursue extraordinary research and creative work, and to engage in service and outreach, as we advance the Wisconsin Idea, our guiding mission to improve lives throughout Wisconsin and beyond,” the statement read. “And even in these complex and uncertain times, we will keep doing exactly that.”

UW-Madison leaders are putting together an ad hoc group with people from all over campus, with the goal of brainstorming how to stay in line with the Wisconsin Idea with so much less money.