LANSING, Mich. (Michigan News Source) — Michigan State University is raising tuition by 4.5% next year under a new $3.69 billion budget that also includes broad spending cuts amid ongoing state and federal funding pressures.
The increase, approved unanimously by MSU’s Board of Trustees on June 13 in Traverse City, comes just one day after the Michigan House passed a budget bill penalizing universities that exceed the tuition cap.
Undergraduate students will pay $798 more per year, with graduate students facing a $44.25 increase per credit hour, according to The Detroit News.
Notably, MSU is adjusting to over $50 million in lost federal grants and a House plan to cut $56.6 million in state funding, citing out-of-state enrollment and DEI spending.
“We were obviously quite surprised and disappointed by the House budget,” MSU President Kevin Guskiewicz said.
After the state budget proposal, the board approved a 9% cut to general spending to help stabilize finances. At the same time, MSU increased financial aid by 10.6% to $411.25 million—including $6 million in new support and $12.5 million for prior-year commitments.
“This is just one phase in a long budget process,” Guskiewicz said. “We’re going to do everything to deliver.”
The state budget is still under negotiation between the House, Senate, and governor’s office.