Budget Pressures in Higher Education – What Internet2 Industry Members Need to Know 

Estimated reading time: 3 minutes

The research and higher education (R&E) community is facing growing financial pressure with rising operational costs, technology demands, staffing challenges, and funding uncertainty. Institutions need to make real-time decisions about priorities, investments, and long-term strategy.

To better understand how the R&E community is responding to today’s budget realities while continuing to advance student success, research priorities, and institutional capacity, the Center for Digital Education, in collaboration with Internet2, surveyed more than 100 higher education IT leaders and decision-makers in December 2025 and January 2026. The survey pool represented a broad cross-section of R&E institutions.

The findings were published in a market research white paper, Facing the Budget Crunch in Higher Education. The reportoffers valuable insights into the financial and operational pressures shaping decision-making among higher education leaders and the strategies institutions are exploring in response. This white paper is available exclusively to Internet2 members.

The survey results also highlight trends in higher education investment and resource priorities. These insights help Internet2 industry members engage with the R&E community and build partnerships and solutions to meet their financial needs.

Internet2 White Paper Provides Key Insights on Budget Pressures, Investment Priorities

Budget Pressures and Real-time Changes

Inflation, rising operational and technology costs, deferred maintenance, and flat funding were the major financial challenges respondents identified in the survey. 

Higher education institutions remain focused on data management and compliance, cybersecurity, student success, and digital instruction. 

In response to budget constraints, the top cost-cutting measures include reevaluating academic program offerings and reducing staff, as well as increasing online academic offerings.

Technology Revenue and Investments 

Survey respondents are increasingly exploring AI, automation, cloud services, and data analytics to improve efficiency and manage costs. 

Findings show how higher education institutions approach new revenue opportunities and alternative funding while considering more shared services and outsourcing support solutions. 

The report highlights the importance of collaboration, leveraging consortium resources and shared services, and adapting scalable technology solutions to navigate ongoing budget uncertainty.

Download the White Paper

Internet2 members have access to the full results and market research white paper, Facing the Budget Crunch, by the Center for Digital Education.

About the Survey:

To understand how higher education is addressing budget challenges at their institutions, the Center for Digital Education, in collaboration with Internet2, surveyed 128 higher education leaders in December 2025 and January 2026; non-IT leadership (25%), IT support and IT management (15.6%), IT leadership (14%), instructors (14%), and non-IT administrative (14%). Respondents also represented a broad range of institutions, including doctoral universities (22.7%), public universities and colleges (21.9%), private universities and colleges (21.9%), community colleges (18.8%), master’s or baccalaureate universities (14.8%), and minority serving institutions (3.9%). Internet2 membership affiliation by higher education institution was not captured in the results.