Annual Financial Report 2024 2025

Virginia Tech Financial Report FY25

Economic Outlook Virginia Tech has maintained strong state and federal funding support, which has enabled the university to pursue its tripartite mission of discovery, learning, and engagement from a strong financial position. As a public institution, the university is subject to many of the macro economic conditions that impact the nation and the Commonwealth of Virginia. The fiscal strength of the Commonwealth of Virginia translated into a significant investment of resources into Virginia Tech for fiscal year 2025, signaling the state’s continued interest in supporting higher education and economic growth. With actual state revenue collections outpacing the revised revenue forecast, the commonwealth finished fiscal year 2025 with a $2.7 billion surplus over the original forecast. This surplus provided the commonwealth capacity to further enhance its reserves while providing funding to institutions of higher education to support the Virginia Military Survivors and Dependents Education Program. In planning for fiscal year 2026, the university closely monitored the bud get deliberations of the Virginia General Assembly. The total FY26 general fund allocation from the commonwealth is projected to be $464.9 million, an increase of $8.0 million from the FY25 adjusted budget - which supports 19 percent of the university’s budget through general fund appropriations in FY26. The commonwealth provided significant one-time investments in FY25 targeted at improving access and affordability, enhancing financial aid, and expanding biotechnological research; however, a significant portion of support was provided on a one-time basis in FY25 due to economic uncer tainty and was not continued to FY26. The university continues to identify opportunities to partner with the commonwealth to achieve joint goals. In parallel, the university continuously explores cost containment measures and strategies for revenue enhancement, including increased philanthropy, industry partnerships, and enrollment to meet the needs of the university and support the state’s needs. The Virginia Tech Board of Visitors maintains its authority to establish tuition and fee rates, and significant national, state, and institutional emphasis continues to focus on maintaining a slow rate of tuition growth. Demand for a Virginia Tech education remains robust. The university received a record number of applications for the fall 2025 freshman class, with total fall 2025 undergraduate enrollment of 31,618 students, and plans for incremental growth of 1–1.5% annually through 2029. Tuition and fees now account for 42% of the university’s total budget, and approximately 62% of the Educational and General (E&G) budget. Demand from both talented resident and nonresident students continues to increase. The university’s ef forts have also diversified the applicant pool with notable increases in interest from first-generation and under-served populations. As the largest producer of STEM-H graduates in the commonwealth, Virginia Tech continues to strengthen Virginia’s workforce and knowledge-driven economy.

An additional major input to the university budget is federal support. University leadership monitors federal opportunities to support university program funding, including externally sponsored research, land-grant activ ities, and student financial aid. Active collaborations with other universities, industry, and foundations, as well as the federal government have facilitated the sharing of expertise across disciplinary boundaries. The university is closely monitoring and analyzing federal developments, including potential changes in the indirect cost recovery model and the recent government shutdown, to ensure continuity in research activities and compliance with federal guidelines. While significant focus is placed on sustainable revenue sources, the uni versity also continues to employ cost containment and innovative resource enhancement strategies to successfully advance the institution and its strategic priorities. In comparison to peer institutions, benchmarking demonstrates that Virginia Tech operates an administratively lean organization, directing a larger share of overall resources towards academic activities than peers. The university will continue to employ strategic planning processes to advance its core missions of instruction, research, and public service, and manage resources to achieve strategic priorities. Current priorities include facilitating student access, affordability, and success through the Virginia Tech Advan tage program and becoming a top 100 global research university through the Virginia Tech Global Distinction program . Given the importance of the intercollegiate athletics program, the university is also working to position the program for the future. Virginia Tech, along with all other public institutions of higher education in Virginia, continues to benefit from significant decentralized authority from the Commonwealth of Virginia. Restructuring provides flexibility and authority to the participating institutions with the potential for increased efficiencies and cost savings. The university works to leverage these authorities to drive efficiencies for cost savings and better meet the needs of the commonwealth. The university invests its public funds in accordance with two sections of the Code of Virginia: the Investment of Public Funds Act and the Uniform Prudent Management of Institutional Funds Act. The university continually monitors the valuation of its investments which is overseen by the university’s board of visitors. At the end of the fiscal year, the value of the university’s investments held with the foundation totaled $636.5 million, an increase of $30.7 million over the preceding year. Virginia Tech is well-positioned to navigate the evolving higher education environment. With strong financial stewardship, robust student demand, high customer satisfaction with auxiliary services, diversified revenue streams, and strategic planning, the university is poised to continue advancing its core missions and strategic priorities. The institution’s financial health is affirmed by high-quality debt ratings from Moody’s (Aa1) and S&P (upgraded to AA+ in December 2024), and its future remains bright as a leading public university in the commonwealth.

Photo by Christina Franusich/Virginia Tech

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