The University of Chicago has announced a significant reduction in its budget deficit for the 2025 fiscal year. According to the latest financial statement, the university cut its deficit by $128 million, moving closer to its goal of balancing the budget by the end of the decade.
This progress is attributed to efforts across the institution to control spending and increase revenue at a faster rate than expenses. The university also reported strong student demand and record levels of philanthropic support from donors.
“Thanks to the work of so many people across the University, we took out a huge share of the deficit in FY25, and we’re on a very good path forward,” said Provost Katherine Baicker.
Measures taken by the university addressed a structural deficit that resulted from long-term investments aimed at enhancing academic quality. The strategy focuses on prioritizing resources for transformative education and research.
Financial highlights from FY2025 include a decrease in the deficit from $288 million in FY2024 to $160 million in FY2025. These figures pertain only to the university’s core operations and exclude University of Chicago Medicine, which posted an $80 million surplus for FY2025. Additionally, net assets increased by $471 million, while the portion of the endowment managed by the university grew by about $500 million. Debt as a percentage of expenditures also declined compared with last year.
“We substantially outperformed our plan for the year,” said Chief Financial Officer Ivan Samstein. “This is no reason for overconfidence—we still have a lot more work to do. But it is a very good start.”
Despite these gains, challenges remain due to ongoing national trends affecting higher education funding and federal research support. The university noted that government grant revenue decreased slightly during this period—a trend seen across many research institutions—and uncertainty regarding future federal funding could impact finances going forward.
“We need to calibrate spending and revenue growth carefully,” Baicker said. “Our job is to ensure that we put resources where they matter most for student success and the University’s scholarly mission.”