Prohibiting an increase in the amount of tuition charged to resident undergraduate students at regents institutions for a period of time and including effective date provisions

Description

House File 2242 prohibits the Board of Regents from increasing the annual amount of tuition rates charged for resident undergraduate students at institutions under its control. The prohibition is repealed July 1, 2031. The Bill takes effect upon enactment.

Background

Iowa’s three Regents institutions — the University of Iowa (SUI), Iowa State University (ISU), and the University of Northern Iowa (UNI) — currently establish tuition rates under the authority of the Board of Regents. Tuition increases are typically reviewed and approved in June of the preceding academic year. Over the last 10 years, SUI has raised tuition fees by an average of 3.7% per year, ISU by 3.4% per year, and UNI by 2.6% per year.

Resident undergraduate enrollment counts are provided by the Board’s Fall 2025 Enrollment Report: SUI reported 13,244 students, ISU 14,894 students, and UNI 7,036 students.

Assumptions

• The tuition freeze is assumed to apply beginning in FY 2027 and FY 2026 rates remain in effect through FY 2031.
• Under current law, resident undergraduate tuition is assumed to increase by 3.7% at SUI, 3.4% at ISU, and 2.6% at UNI for all future years. Figure 1 details FY 2026 tuition and projections through FY 2031.

Figure 1 — Regents Tuition Projections

SUI

Tuition

ISU

Tuition

UNI

Tuition

FY 2026 $ 9,565 $ 9,530 $ 8,792 10-Year Average Increase 3.7% 3.4% 2.6% Est FY 2027 $ 9,917 9,853 9,017 Est FY 2028 10,282 10,215 9,248 Est FY 2029 10,660 10,591 9,485 Est FY 2030 11,052 10,980 9,728 Est FY 2031 11,458 11,384 9,977

• Resident undergraduate enrollment is assumed to remain flat over the projection period.
• All resident undergraduate students are assumed to pay the full published tuition rate. No adjustments are made for tuition discounts, waivers, or differential tuition programs.

Fiscal Impact

Figure 2 details the maximum loss of tuition revenue by university by fiscal year and by total impact of the five-year tuition freeze. These amounts may be lower after factoring in adjustments for tuition discounts, waivers, or differential tuition programs. Figure 2 — Tuition Revenue Reduction by Fiscal Year (in Millions)

SUI ISU UNI Total

FY 2027 $ 4.7 $ 4.8 $ 1.6 $ 11.1 FY 2028 9.5 10.2 3.2 22.9 FY 2029 14.5 15.8 4.9 35.2 FY 2030 19.7 21.6 6.6 47.9 FY 2031 25.1 27.6 8.3 61.0 Total $ 73.4 $ 80.0 $ 24.6 $ 178.0 Totals may not sum due to rounding.

Sources

• Legislative Services Agency calculations
• Board of Regents