Rep. Karen Peterson and Utah Commissioner of Higher Education Geoffrey Landward outlined the ongoing implementation of H.B. 265 on the latest House Rules podcast.
Utah has nearly doubled its higher education budget over the last ten years, while student enrollment has grown by just 24 percent. During the same period, administrative costs increased by more than 75 percent. Meanwhile, Utah has workforce shortages in nursing, engineering, mental health, and other high-impact professions. H.B. 265 responds to this by requiring public colleges and universities to submit three-year plans to evaluate academic programs, trim administrative costs, and reallocate funding toward high-demand areas.
“We are not cutting the higher education budget,” Landward said. “What the state has asked us to do is to look at how we’re deploying the resources that the state is giving us and to make sure that we’re directing those resources to areas that give the state and the students the best return on that investment.”
In December, the Executive Appropriations Committee reallocated $60 million from colleges and universities to a strategic reinvestment fund. This amount represents roughly 10 percent of each institution’s instructional budget. Institutions must submit data-backed reinvestment plans to reclaim their share of the funding.
“The plans all look different,” Landward said. “They do tend to reflect the mission overall of the institution.” Early proposals include combining colleges to reduce administrative costs and aligning curriculum more closely with workforce needs. Some campuses are also exploring partnerships with local industries and technical colleges.
For the upcoming school year, the Utah Board of Higher Education approved only a 2.2 percent increase in tuition and fees, which is below the current rate of inflation. Weber State University will freeze tuition and fees for all students with fewer than 60 credit hours, covering about half of its full-time students.
“Every dollar has got to count, every dollar that whoever is putting it in, whether the student themselves or the state, we’ve got to make sure those dollars count,” said Peterson.
Targeted reinvestments have proven effective in the past at meeting the state’s workforce needs. In 2020, the Legislature appropriated one million dollars to expand social work programs at the University of Utah and Utah State University. From 2020 to 2023, the number of licensed social workers from those programs more than doubled.
“Higher education in five years and ten years looks completely different than it looks now,” Landward said. “We intend to partner with the Legislature to make sure that higher education is positioned to thrive in Utah.”
FAQ: House Bill 265, Higher Education Strategic Reinvestment
What is H.B. 265 in Utah?
H.B. 265 is a 2025 law that requires public colleges and universities in Utah to submit three-year plans to evaluate their academic programs, trim administrative costs, and reallocate funding to expand high-demand, high-impact programs. The goal is to support programs with strong student demand, job placement, and alignment with workforce needs.
Read the full bill text: https://le.utah.gov/~2025/bills/static/HB0265.html
Is H.B. 265 a budget cut to higher education?
No. H.B. 265 is not a budget cut. The state maintained overall higher education funding. $60 million was reallocated to a strategic reinvestment fund that institutions can access by submitting approved reinvestment plans.
Will H.B. 265 raise tuition for Utah students?
No. The legislation prohibits tuition increases to offset reallocated funding. The average statewide increase in tuition and fees for the upcoming year is just 2.2 percent, which is below the rate of inflation. Weber State University is freezing tuition for students with fewer than sixty credit hours. Overall, Utah has the 4th lowest tuition costs in the entire country.
What happens to students in programs affected by reallocation?
Reinvestment plans will be implemented over three years, which will allow students currently enrolled in affected programs to complete their degrees. Peterson explained, “We want to ensure that our students who are already enrolled in certain programs can finish. That’s really important, both for accreditation and for the students themselves who have made investments.”
Why is Utah restructuring higher education funding?
Utah aims to ensure student tuition and taxpayer dollars lead to strong outcomes. A legislative audit found more than 50 degree programs where graduates earn less than $50,000 five years after graduation. At the same time, Utah faces workforce shortages in mental health, engineering, nursing, and other high-impact fields.
How are colleges using the data to decide what to cut or reinvest in?
Institutions are reviewing data including program enrollment, graduation rates, employment outcomes, wages, and industry needs. Landward said, “This is just good, responsible management.”