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COLUMBIA, Mo. — In response to economic uncertainty, the University of Missouri System is imposing immediate hiring restrictions, purchasing controls and slowing spending.

The cost-saving measures, which aim for a minimum $16 million in savings for fiscal year 2025, were presented Thursday at the Board of Curators meeting in Rolla.

While the system “remains well positioned with a strong balance sheet,� broader pressures on the higher education sector are spurring such cuts, said Ryan Rapp, UM System executive vice president for Finance and Operations.

One of the key concerns is potential cuts to federal research funding, such as those from the National Institutes of Health.

“NIH is the largest funder of university research throughout the United States. And so to replace the level of funding that potentially can be at risk is very significant,� UM System President Mun Choi said. “We will continue to make the case to NIH and other agencies and educate them on the value of our research so that the funds will continue to flow to the University of Missouri.�

Part of the system’s financial strategy, Rapp said, is keeping administrative spending low and maintaining current academic spending.

The system spends just over a quarter of its labor budget on administration, Rapp said, compared to a 38.5% benchmark average. Additionally, 56.8% of its labor budget is allotted to academics, exceeding the 52.5% average at peer institutions.

The University of Missouri has also cut educational expenses per degree awarded by 20% since 2017, according to Rapp’s report. More “moderate� tuition increases are expected, with state appropriations projected to rise by 1.5%. The curators increased tuition by 5% for all undergraduates in May 2024, and will vote on tuition and fee rates for fiscal year 2026 at its May meeting.

Even amid the UM system’s economic stress, Choi boasted increased application rates for fall 2025 at all four universities. First-time college applications showed double-digit increases with MU at 12%, the University of Missouri-Kansas City at 15%, Missouri University of Science and Technology at 15% and the University of Missouri-ÃÛÑ¿´«Ã½ at 5%.

“We are very proud of the work that our faculty, staff and administrators have done to share the message that we provide a very high-quality, affordable education at our universities,� Choi said.

The curators also approved two new degree programs at the meeting: a doctoral program in human development and family science at MU and a masters in geospatial engineering at Missouri S&T.

MU’s Veterinary Medical Diagnostic Laboratory building was officially renamed the Dr. Dan Brown Building, in honor of the late veterinarian and former state senator.

Board Chair Todd Graves highlighted recent system milestones, including the April 2 ribbon-cutting for a 47,000-square-foot addition to the MU’s research reactor and the Wednesday groundbreaking of a 127,000-square-foot Bioplex research hub at Missouri S&T.