North Carolina HBCUs stand to lose more than $1 million in state funding

A pair of North Carolina HBCUs will feel the impact of state higher education budget cuts.

The University of North Carolina System is set to implement changes in its funding allocations for the 2025-26 fiscal year that will lead to significant budget reductions for North Carolina A&T and Winston-Salem State, according to published reports.

The UNC Board of Governors approved the reallocation on Thursday, as part of a broader shift away from the traditional enrollment-based funding model.

The new approach ties university funding more closely to student outcomes and performance rather than sheer student numbers, mirroring trends in higher education funding nationwide.

Under the revised system, state funds are awarded based on how effectively institutions meet state and system goals, including metrics like graduation rates, student debt reduction, and on-time completion.

North Carolina A&T will see its budget reduced by $778,000, while Winston-Salem State faces a nearly $484,000 cut. In contrast, the funds will be redirected to campuses considered most at risk due to low student numbers, including North Carolina Central University and Fayetteville State University, the report said.

University leaders have expressed concern that the funding changes add additional strain amid ongoing legislative uncertainties, which make long-term financial planning more difficult.

UNC System President Peter Hans defended the transition to performance-based funding, stating that the goal is to “better emphasize the core responsibility of undergraduate education and reward performance: student outcomes.”

The changes come as universities contend with demographic shifts and tightening state budgets. While some campuses may benefit from the new funding formula, those with declining enrollment could see significant operational impacts unless additional support is secured from the legislature