$23 million net reinvestment into instruction and research expected
During its June 2026 meeting, the Utah Board of Higher Education approved year-two strategic reinvestment plans for all eight Utah System of Higher Education degree-granting institutions that place Utah colleges ahead of statutory implementation targets and are expected to generate nearly $23 million in net reinvestment in instruction and research. It also directed technical colleges to develop and submit strategic reinvestment plans by September 2026.
“Utah colleges and universities are investing real money in Utah classrooms – $23 million more in instruction and research thanks to H.B. 265,” said Jon Cox, Utah Board of Higher Education vice chair. “Students deserve to have their tuition dollars spent where it matters most, right in the classroom with high-quality teachers in high-demand fields. Expanding this same framework to technical colleges will support continued alignment with Utah’s evolving economic and industry needs.”
As degree-granting institutions enter the second year of implementation, progress is well exceeding statutory requirements, with an anticipated 61.2% of disinvestments and 46.0% of reinvestments completed in the 2026 fiscal year. At a system level, institutions also project that nearly $1 million in additional resources will be reinvested in instruction, over and above what was proposed in original plans, bringing the estimated total net reinvestments in instruction and research to $23 million and 83.3% of all reallocated dollars.
Across USHE, those reinvestments are supporting additional faculty, staff and instructional resources in high-demand fields such as engineering, nursing and artificial intelligence, among other critical programs. Institutions are also using reinvestment funds to strengthen research activities and enhance opportunities for students to develop durable, workforce-ready skills and engage in civic life.
Most proposed year-two modifications were generally minor and driven by implementation timing, updated cost estimates, faculty hiring timelines, program refinements and other operational adjustments. All institutional plans were determined to meet statutory requirements and Board guidance related to implementation progress, reallocation targets and reinvestment priorities.
First enacted during the 2025 General Legislative Session, HB 265, Higher Education Strategic Reinvestment, established a three-year strategic reinvestment requirement for USHE degree-granting institutions. The initiative requires institutions to evaluate programs and services, reallocate resources and reinvest funding in priorities that demonstrate strong workforce outcomes and alignment with state economic priorities. Building on that framework, the Board directed technical colleges to engage in a similar process in March 2026 and approved 2027 guidance tailored to their workforce-focused mission and strong partnerships with regional employers.
Reinvestment decisions are guided by data on student enrollment, completion, program outcomes and workforce demand, as well as ongoing input from institutional leaders, faculty, students, employers, industry partners and other stakeholders.