The University of North Texas is bracing for a difficult financial period as its projected budget deficit for the current fiscal year has jumped to $45 million, up from the $31.2 million gap originally approved in August.
University President Harrison Keller briefed the UNT System Board of Regents on Thursday, February 19, 2026, describing the shortfall as "structural, rather than temporary". Keller warned that while the university aims to protect its core mission, "hard choices" are inevitable as leadership navigates these serious fiscal challenges.
Primary Drivers of the Deficit
Keller identified two significant, long-term factors as the primary causes of the growing gap:
Loss of State Funding: In the last legislative session, UNT saw a substantial reduction in state support for instruction and operations. This amounted to a $32 million funding drop for the 2026 and 2027 fiscal years.
International Enrollment Decline: The university experienced a sharper-than-projected drop in international master's student enrollment. This was attributed to shifts in federal immigration policy and challenges within the visa system that have impacted universities nationwide.
Strategic Path Forward
Unlike some other Texas institutions, UNT leadership emphasized that international students do not displace qualified Texas residents. Instead, their tuition contributions are a vital component of the university's budget that supports the broader educational and research mission.
To stabilize the budget, the university plans to focus on:
Strengthened Recruitment: Aggressively pursuing new student enrollees and improving retention through a focus on student success.
Value-Driven Reductions: Evaluating potential "targeted reductions" and examining current practices to find efficiencies without compromising student support.
University Budget Council Oversight: The council is meeting weekly to evaluate solutions and work with deans to protect the long-term success of the university community.
Keller closed the briefing with a commitment to transparency, promising to keep students, faculty, and staff informed as specific decisions are finalized.