The University of Maryland will increase tuition and no longer provide merit increases for certain employees under its new budget plan announced Friday.

The announcement came after the passage of the University System of Maryland’s final fiscal year 2026 budget plan, which will cut $155 million, or 7 percent, in funding from colleges and universities across the state compared to last year.

This university will receive $59 million less in funding compared to last year, university administrators wrote in a campus email Friday.

Here’s how university community members will be affected by the new budget plan.

[UMD tuition, mandatory fees to increase after USM budget passes]

Undergraduate Tuition:

  • For in-state students, tuition is set to increase by 4 percent to $10,490.
  • For out-of-state students, tuition is set to increase by 2 percent to $40,253.
  • Mandatory university fees are set to increase by 4.5 percent for both Maryland residents and non-residents.

Graduate Tuition:

  • For in-state students, tuition per credit hour is set to increase by 4 percent to $878.
  • For out-of-state students, tuition per credit hour is set to increase by 2 percent to $1,878.
  • Mandatory university fees are set to increase by 5 percent for both Maryland residents and non-residents.

Faculty and Staff:

  • This university will no longer offer merit increases for non-bargaining employees next year.
  • Spending on travel, capital and consultant-related expenses will be cut.
  • The number of contractual and hourly employees will be reduced.
  • Recently-vacated positions will be left empty.

In an email signed by university president Darryll Pines, senior vice president and provost Jennifer King Rice, and finance vice president and CFO Greg Oler, university administrators said this university’s budget plan is financially sustainable.

“We recognize the challenges and stress that the current budget environment represents for our entire community,” the email read. “Without question, we remain committed to carrying out the pillars of the Fearlessly Forward strategic plan, and we are fully dedicated to teaching, research, scholarship and service for the public good.”