ST. LOUIS — Washington University announced last week it plans to implement the largest tuition increase in over a decade, citing a cap on federal government funding for the hike.
According to a news release, undergraduate tuition for students who do not receive financial aid will be $68,240 during the 2025-2026 school year, which is $3,740 more than the current rate of $64,500.
The university’s leadership noted the increase as a “necessary move” after confronting the National Institutes of Health’s new cap on grant funding for “indirect costs.”
Companies and institutions in Missouri were awarded more than 1,500 NIH grants in 2024, and 1,192 of those went to Washington University—worth $732 million.
The new NIH rule aims to cap grants to 15% on indirect costs. Those are defined as facilities and administrations. Researchers said they could lose key funding for administration, accounting, and personnel.
The university said the decision came after “potential significant loss of federal research funding as well as a possible increase in the federal endowment tax.”
In 2024, WashU received over $1 billion of external funding for the first time.
The university said the majority of that funding came from the federal government, including $629 million from the National Institutes of Health and another $116 million from the National Science Foundation, the Department of Health and Human Services, and other agencies.
With anticipation of a reduction in those funds and increases to the federal tax rate on university endowments, the school said these changes threaten to create a significant budget shortfall.
Editor’s Note: The video above is from Feb. 14.