Operating Budget for System: FY 2027

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For more than 140 years, The University of Texas System has improved the lives of Texans and people all over the world through
education, health care and research. With enrollment of more than 270,000 students at academic and health institutions across the
state, as well as an operating budget of $36.6 billion, the U.T. System is one of the largest public university systems in the nation and
the world. U.T. institutions are powerful drivers of economic and social mobility in Texas, producing more than 69,000 graduates
annually, including more than one-third of the state’s undergraduate degrees and about 56% of the state’s medical degrees. Almost
half of all undergraduate degrees are awarded to students who qualify for a Pell grant based on financial need while enrolled at a
U.T. institution.


Approximately 90% of graduates who earned their degrees from U.T. institutions secure jobs in Texas within a year after graduating,
providing a skilled workforce and fueling the state’s economy. In fact, U.T. graduates who entered the Texas workforce between
2002 and 2022 had cumulative earnings through 2023 of more than $400 billion. The U.T. System is one of the largest employers in
Texas, with more than 160,000 faculty, health care professionals, researchers, support staff and student workers.


Creating a healthier Texas is a fundamental mission of U.T. institutions. Collectively, U.T. owned and affiliated hospitals and clinics
account for more than 12.1 million outpatient visits and more than 2.3 million hospital days in the last year reported. In addition to
world class patient care, researchers at U.T. institutions are on the frontline of discovery and innovation. The U.T. System’s nearly
$5.2 billion research enterprise is among the nation’s most innovative, ranking No. 1 in Texas, No. 2 in the U.S. for total research
expenditures and No. 3 for federal research expenditures.


Healthcare expansion across U.T. System continues to advance with several major projects. In October 2024, U.T. Southwestern
Medical Center and Children’s Health, both based in Dallas, broke ground on a $5 billion pediatric campus. Once completed, the
campus will be among the largest pediatric hospitals in the nation. More recently, in April 2026, U.T. Tyler celebrated the grand
opening of the U.T. Tyler School of Medicine building, home of East Texas’ first medical school. Leveraging major gifts received, U.T.
Austin announced the U.T. Dell Medical Center to be constructed in Austin providing an integrated, patient-centered model powered
by AI that will also include an integration of U.T.M.D. Anderson Cancer Center in the delivery of cancer care.


Research activity across U.T. System continues to demonstrate strong growth and impact. In April 2026, U.T. Arlington secured an
$86 million contract from the U.S. Navy to advance power and propulsion systems critical to the future of naval shipbuilding. Earlier,
in January 2026, U.T. System and NASA’s Johnson Space Center signed a Space Act Agreement to expand opportunities for research
collaboration, workforce development, and educational engagement in support of space exploration and national security. These
milestones underscore the U.T. System’s commitment to driving innovation, strengthening strategic partnerships, and advancing
research that addresses national priorities.


Transformational initiatives implemented over the past several years continue to cement U.T. System as a national leader in higher
education, including in August of 2024, a plan was announced to integrate U.T. San Antonio with U.T. Health Science Center - San
Antonio into a premier global university that combines healthcare, biosciences, national security, and data science to create a
powerful, singular entity. In September of 2024, U.T. El Paso announced the reestablishment of the Mining Engineering Program
with the program slated to launch in Fall 2027 and address the growing demand for mining engineers in Texas and across the U.S.
 

College affordability remains a top priority across U.T. System. In 2022, the U.T. System launched the Promise Plus program,
establishing a nearly $300 million endowment to supplement existing financial aid programs and cover tuition and mandatory fees
for eligible Texas resident undergraduate students attending full time. In November 2024, the program was expanded to include
additional support across U.T. academic institutions. Building on that commitment, the program was further expanded in November
2025 to include U.T. health institutions. . In May 2026, an additional $40 million endowment was established with an additional $130
million of funds proposed in August. These investments reflect the U.T. System’s ongoing dedication to increasing access, reducing
financial barriers, and helping students achieve their educational goals without the burden of excessive debt.
 

With the Texas population expected to grow dramatically in the years to come, the U.T. System will continue to lead in driving
prosperity, innovation and health for the people of the Lone Star State.
U.

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Budget and Planning

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Operating Budget Summary

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Referenced Institution(s)

UT Arlington
UT Austin
UT Dallas
UT El Paso
UT Permian Basin
UT Rio Grande Valley
UT San Antonio
UT Tyler
Stephen F. Austin State University
UT Southwestern Medical Center
UT Medical Branch at Galveston
UT Health Science Center at Houston
UT MD Anderson Cancer Center
UT System Administration