UC System May Cut In-State Enrollment By 2026

The University of California issued a sharp warning this week: proposed state budget cuts may force it to reduce or freeze enrollment for California students as soon as 2026. After years of increasing access and growing the number of in-state undergraduates by 16,000, UC leaders say the system has reached a tipping point.

In the face of pushback from the UC system, Governor Newsom lowered his proposed cut from 8% to 3%. While less of a funding cut, it could still have a big impact on enrollment systemwide. 

The future cuts come as the UC system has seen record enrollment after years of high school graduating class growth. The 2025 graduating class was the largest on record nationwide, but future years show that the number of graduates will begin declining.

Public Pressure And Support

Over the past five years, UC expanded undergraduate enrollment for Californians across its 10 campuses. This growth was not accidental. It followed years of pressure from voters, lawmakers, and families who wanted more access to flagship schools like UCLA, UC Berkeley, and UC San Diego.

To help meet that demand, the Legislature provided annual funding boosts, including $30 million earmarked to shift spots away from out-of-state students and toward in-state applicants. But the proposed 2025-26 budget, shaped by broader economic shortfalls, puts those programs at risk.

If approved, UC’s share of the permanent budget reductions would total about $400 million. University officials said that campuses might be able to absorb roughly $125 million without harming core academic programs, but deeper cuts could disrupt instruction, advising, and graduation timelines.

At UC San Diego, Chancellor Pradeep Khosla said the current budget plan would cut $73 million from his campus alone. That level of reduction would mean larger class sizes, fewer faculty, and decreased access to student services.

Pushback And Uncertainty

The proposed cuts have prompted concern across the political spectrum. Around 50 members of the Assembly have signed letters opposing the reductions. In February, legislative budget leaders wrote to Governor Gavin Newsom’s finance office, warning of long-term consequences for access and equity.

Still, other parts of the state budget are under pressure, and analysts say restoring university funding may not be possible this year. While most agencies have been asked to cut 2%, higher education is facing closer to 3%, a larger share of the overall budget pullback.

"So blowing up class sizes, reducing advising, limiting opportunities for our students: This is not a recipe for the continued success at the University of California," Newman said.

What This Means For Students And Families

The high school class of 2026 will be applying to college this fall. If lawmakers finalize cuts this June, UC enrollment caps could take effect for that very class. Students who may have once expected a fair shot at a UC campus may find admission harder to come by.

The impact could fall hardest on families without the means to consider private or out-of-state schools. Access to public higher education has long been seen as a pathway to opportunity in California, and fewer seats would narrow those pathways.

At the same time, demographic forecasts suggest that future high school graduating classes may shrink. That long-term trend could ease demand later, but won’t help current juniors and seniors facing the possibility of an enrollment freeze.

Some campuses may still grow slightly or hold steady, depending on how individual budgets are managed. But without restored state support, UC officials made clear that the five-year expansion of California student enrollment may not continue.

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