Texas public colleges and universities will continue operating under a tuition freeze for the 2026-27 academic year, marking the fourth consecutive year that tuition rates have remained unchanged statewide.

Gov. Greg Abbott this week sent a letter to public higher education institutions across Texas, reminding them that the tuition freeze remains in effect and directing schools not to increase tuition for the upcoming academic year.

The freeze was originally approved by state lawmakers for the 2023-24 and 2024-25 school years. In November 2024, Abbott extended the policy through the 2026-27 academic year.

Governor Signals Interest in Longer-Term Extension

In his letter, Abbott emphasized the importance of maintaining affordable access to higher education while preserving academic quality.

“Texas must continue leading the nation in creating affordable pathways to higher education while maintaining the high academic standards that make our institutions strong,” the governor wrote.

Abbott also indicated that he intends to pursue an additional extension of the tuition freeze during the next legislative session, scheduled to begin in January 2027. The governor is seeking reelection later this year.

Universities Face Revenue Challenges Despite Tuition Stability

While the tuition freeze helps limit educational costs for students and families, several North Texas universities are dealing with significant financial challenges driven largely by declining enrollment among international students.

University of North Texas Projects Multi-Million-Dollar Shortfall

The University of North Texas (UNT) expects tuition revenue to decline by nearly $43 million in fiscal year 2026, representing a 10% decrease from the previous year. University officials attribute much of the drop to lower enrollment among international master’s students, who typically pay higher tuition rates and receive less financial aid.

Tuition revenue accounts for approximately 41% of UNT’s operating budget. During a recent Board of Regents meeting, university leaders projected a budget deficit of roughly $34 million, an improvement from an earlier estimate of about $45 million.

A university spokesperson said UNT has no plans to raise tuition or fees for the 2026-27 academic year.

UTA Reports Similar Financial Pressures

The University of Texas at Arlington (UTA) is also forecasting financial difficulties. The university expects a budget shortfall of $44.2 million in 2026, including a $17.6 million decline in tuition revenue compared with the previous year.

UTA officials have linked part of the decrease to a 30% drop in international graduate student enrollment for the fall 2025 semester.

The university declined to comment on the projections.

Cost-Cutting Measures Underway

In response to growing budget gaps, both UNT and UTA have implemented cost-reduction strategies. These efforts include consolidating or eliminating certain academic programs and offering voluntary buyouts to faculty members.

University leaders say the measures are intended to address financial pressures while maintaining core educational services.

State Points to Increased Higher Education Funding

Abbott cited recent state investments in higher education as a key reason the tuition freeze can remain in place.

The governor highlighted a $680 million funding overhaul for community colleges approved in 2023, along with an additional $328 million authorized in 2025 to expand access to financial aid resources.

According to Abbott, these investments are designed to improve affordability and educational opportunities for Texans without requiring institutions to increase tuition.

Balancing Affordability and Financial Sustainability

As Texas enters its fourth year of frozen tuition rates, public universities continue to navigate the challenge of keeping higher education affordable while addressing revenue declines and rising operational costs.

State leaders argue that increased public funding can help offset financial pressures, but many institutions remain focused on budget adjustments as they prepare for the years ahead.