The University of Chicago has reported a significant reduction in its budget deficit for the 2025 fiscal year, according to its recently released financial statement. The deficit decreased by $128 million, moving the institution closer to its goal of balancing the budget by the end of the decade.
This progress was achieved through efforts across various departments to limit spending increases and boost revenues at a higher rate than expenses. The university also cited strong student demand at all levels and increased philanthropic support as key factors.
“Thanks to the work of so many people across the University, we took out a huge share of the deficit in FY'25, and we’re on a very good path forward,” said Provost Katherine Baicker.
The structural deficit resulted from long-term investments aimed at strengthening academic programs. Measures taken include focusing spending on educational initiatives and research. In fiscal year 2025, the university’s deficit dropped from $288 million in 2024 to $160 million. These figures exclude University of Chicago Medicine, which reported an $80 million surplus for the same period. Net assets increased by $471 million, while the university’s portion of its endowment grew by approximately $500 million. Additionally, debt as a percentage of expenditures declined compared to last year.
“We substantially outperformed our plan for the year,” said Ivan Samstein, enterprise chief financial officer at UChicago. “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, national trends present challenges for higher education funding and federal research support. Revenue from government grants and contracts saw a slight decrease; however, other research universities faced even larger reductions in funding. Ongoing uncertainty about federal support could continue to impact finances in future years.
“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.”