Office of the President

2026 Institutional Reductions

Portland skyline

PLAN FOR A RESILIENT PSU

As Oregon’s Urban Research University, Portland State anchors the state’s largest city and our public higher education ecosystem. More than 80% of PSU students are from Oregon, and most stay here after graduation. We are the region’s workforce engine, offering an accessible path to an excellent education and the best social mobility rankings in the Pacific Northwest.

PSU is making changes now to ensure that the university has a thriving future. The ultimate goal is to protect the student experience, support impactful research partnerships and continue to serve our region as an engine of opportunity. 
 

What is happening?

PSU has engaged in a collaborative process to review both academic offerings and operations so that we can continue to prioritize our students, invest in programs that will drive our region's economy, and address the urgent issue of the university’s financial sustainability. Our goals include ensuring: 

  • We avoid a financial crisis that would compromise our mission.
  • Our degrees are meeting the needs of students and our regional market, which improves our financial sustainability.
  • We are responsible stewards of tuition dollars and state funding.

Why is this necessary?

  • Enrollment is down: We have to be honest about the numbers. PSU has seen a 23% decline in enrollment since 2019, driven by the reputation of downtown Portland, pandemic-related declines in community college enrollment and evolving federal policies impacting international students.
  • Costs are up: Despite having fewer students, we have higher operating costs, more programs and more employees than we did a decade ago.
  • Limited State funding: The State of Oregon is facing its own significant budget pressures. We cannot rely on the state for more money, and we cannot bridge the gap by significantly raising tuition for our students or digging deeper into our reserves. It’s important that we get our financial house in order.
  • We can no longer rely on reserve spending: In recent years, PSU has relied on its reserves to fund ongoing operations. This is not a sustainable financial practice and it is imperative that we balance our budget. If we continue to rely on reserve spending for everyday operations, our education and general fund reserves will reach critically low levels by 2028.  

What is changing?

  • Academic changes: Some programs will grow, while others will be updated, reduced or closed.
  • Administration: We are simplifying our operations and internal processes to better serve students and save money and work more efficiently.
  • Staffing: Given that personnel expenditures account for a significant portion of our budget, there will unfortunately be reductions in positions. We are working carefully with our leaders to be as thoughtful as possible during this difficult transition, and all reductions will be handled with clarity and compassion.

What is not changing?

  • PSU will continue to offer students a range of accessible, affordable degree programs designed to provide an advantage for the careers of the future.
  • PSU will continue to be a top school for social mobility, serving first generation students and students from diverse backgrounds, having prioritized their success throughout this transition period.
  • No matter what, all students will have a clear pathway to graduation in their chosen field. Student success remains PSU’s highest priority. 

What is the timeline?

PSU is currently shifting from analysis and planning to implementation. However, these changes won’t happen overnight. A thorough campus engagement process is underway and leaders will continue to fine-tune plans based on input from the PSU community and further analysis. Implementation of all changes will take place over the next year. 

Frequently Asked Questions:

Yes. There will be job losses and job changes as a result of this transition. We are embarking on a campus process to refine our implementation plan which will determine the number of layoffs that will take place. Our contract with our faculty union requires that any full-time, tenured faculty positions that are eliminated receive a 12-month notice. 

At this time, we have a preliminary list of departments that are most likely to see changes. The following departments are likely to be impacted by a reduction of programs and/or personnel:

Departments that may be eliminated: 
University Studies
Conflict Resolution
Portland Center

Departments that may be reduced: 
Educator Licensure
Leadership, Learning, and Counseling
History 
Philosophy
School of Earth, Environment and Society
World Languages & Literatures
Criminology and Criminal Justice
Economics
Politics & Global Affairs
Public Administration

Departments that may be impacted by the possible elimination of University Studies: 
English
Physics
Sociology
Women, Gender, and Sexuality Studies
School of Art + Art History + Design
School of Public Health
 

PSU is facing significant financial challenges, but we believe the steps we are taking now will put the university back on strong financial footing. PSU has maintained reserves to cover costs during periods when deficit spending is required. Our goal is to move beyond this period of drawing down our reserves and return to a place of reinvestment in promising programs and initiatives. 

One of the goals of PSU’s pursuit of long-term financial sustainability is not to pass the burden on to students through significant tuition increases. PSU remains dedicated to providing an accessible, affordable education to all.

Yes! PSU’s financial sustainability plan is an investment in future students. We are investing in academic programs that equip students with the skills and knowledge they need to thrive in future careers, and in support services to boost our graduation rates and become a national leader in social mobility through higher education.

Faculty and academic leaders in each college and school reviewed data on enrollment patterns, graduation outcomes, employment trends, and emerging workforce needs to determine which programs to grow, sustain, revitalize, or close. This information was provided to PSU President Cudd who conducted a further review of financial needs and made the decision about which academic departments may be impacted. There has also been a thorough review of non-academic operations and reductions and cost-saving transitions will take place in other areas of campus.

Universities across the country have experienced similar economic headwinds and higher education as an industry is facing challenges including a declining population of high school-aged students and new uncertainties related to federal and state funding. There is also declining trust nationwide that a college degree is a worthwhile investment even though we know higher education leads to better outcomes for our students. Other public universities in Oregon have seen layoffs in the last year due to budget deficits.

The university is actively implementing a two-year plan to make its internal operations more efficient and strengthen its academic programming, not only to eliminate its structural deficit but also to strategically invest in identified growth opportunities. This includes program optimization, as well as organizational restructuring, modernization, and streamlining. Our guiding principles through this change are to prioritize the student experience, consider the future state of PSU, and align personnel with strategic needs.

PSU’s strategic plan, Future in Focus, outlines our vision for 2030: PSU thrives as Oregon’s urban research university where every student develops the knowledge and skills they need to successfully engage in careers and the world. We are a national leader for social mobility through higher education, a model for serving minoritized learners and a driving force for Portland’s success. PSU is a dynamic workplace that supports the professional development and well-being of all employees. We harness our academic excellence, innovative research, strategic partnerships and community engagement to address local, regional and global challenges.

Like many universities, PSU faces financial challenges due to changes in enrollment, inadequate state support, and rising costs. By making careful choices now, we can strengthen our programs and operations, ensuring PSU remains a strong, sustainable university for decades to come.

Updating programs helps the university focus resources on the courses, services and support students use most — strengthening the overall student experience and ensuring PSU remains stable for current and future students. It also allows PSU to continue serving the region as an economic engine through public impact research, workforce development, and opportunities for entrepreneurship.