Overview

• Berlin’s Senate and university leaders concluded six months of negotiations on July 24 to cut annual funding increases to 3–3.5% from 2026 through 2028, down from the originally agreed 5%.
• The revised contract commits €6.8 billion over four years and secures an additional €62 million for university budgets in 2027 and 2028.
• Starting January 2026, Berlin will assume all state university pension liabilities, freeing about €120 million for institutions over the next three years.
• A solidarity model will draw on €156 million of unrestricted university reserves between 2026 and 2028 to cushion the €140 million in cuts imposed in 2025.
• Hesse’s 2026–31 Hochschulpakt took effect on July 16 with a €30 million cut in 2026, budgets returning to current levels in 2027 and modest growth from 2028, prompting universities like Kassel to plan annual savings of around €14 million.