President James B. Milliken’s opening remarks at the UC Board of Regents January Meeting on Tuesday, January 20, 2026, as delivered
Thank you, Chair Reilly, and Happy New Year, everyone. My remarks today will be somewhat similar to yours, which I hope is a welcome sign that we’re well aligned.
At our November meeting, I highlighted the various financial challenges facing the University of California, federal cuts and uncertainty, rising operational costs, as well as the state’s fiscal challenges.
As Chair Reilly mentioned, earlier this month, we gained a bit of clarity on one element as Governor Newsom released his proposed state budget for the next fiscal year. We were very pleased to see that the initial state budget proposal includes a base budget increase of 7%. This is made up of a $350 million increase in ongoing funding and restores the $130 million base budget deferral from the current fiscal year. The state budget will evolve over the next few months, and much can change, but this is a very positive first step. We will have a more detailed report from EVP Brostrom later in the meeting.
This proposal reflects Gov. Newsom’s steadfast commitment to our university and its students. I’m deeply grateful to him and our legislative leaders for their support, and I look forward to our ongoing collaboration to ensure that our students have what they need to succeed at UC and beyond.
Even so, it is important to note that UC’s financial challenges are not going away any time soon. While we have benefited from some court rulings on federal cuts, those decisions are under appeal, and the ultimate outcomes remain uncertain. What does remain clear is that we need to continue to find efficiencies, economies of scale, and additional sources of revenue. In this environment, state support is more important than ever, and it continues to make an important difference.
As Chair Reilly noted, but this in particular bears repeating, UC reached a remarkable milestone this past fall, enrolling more than 300,000 students for the first time in our history. This includes over 200,000 California resident undergraduates, representing the tenth consecutive period of growth for in-state enrollment. These record-breaking numbers reflect California’s commitment to the academic excellence, access, and innovation that have made the University of California the greatest university in the world. They also point to the clear value of a UC degree at a time when nearly two-thirds of Americans are reportedly questioning whether a college degree is still “worth it.” It is.
I want to mention a few priorities of mine, in addition to the priorities that I embrace that Chair Reilly mentioned. First, access and affordability. I’m certain we share the view that talent is universal, but opportunity still is not. This university exists, in large part, to match that talent with opportunity. Access and affordability are central to who we are. Students from every part of the state and scholars from around the world who add much to our nation want to study and conduct research on our campuses. With a degree from UC, they reap lifelong benefits, as do their families, their communities, and their future employers. Our state, our economy, and our nation benefit. The average UC graduate breaks even on their education investment between 4-6 years after graduation, and their salary more than doubles between 2 and 10 years after graduation. Upon graduation, our alumni are ready to contribute to the industries that have made California the fourth-largest economy in the world: biotech, computing, engineering, finance, education, health care, and the entertainment industry, just to name a few.
And while the latest enrollment data is great, we can’t rest on our laurels. It should spur us to think creatively about how we make a UC education possible for even more people.
In that regard, we should celebrate the recent reports on growing number of students who earn AP and community college course credits before arriving on our campuses, helping them to save money, graduate sooner with lower debt, finishing their degrees in three years and making room for even more students.
Second, part of expanding a UC education to more will depend on our use of technology. And we also need to ensure that we equip all our students with the skills needed to succeed in workplaces being reshaped by rapidly changing information technologies in particular. The AI revolution is already well underway. UC must establish itself as a leader in shaping how AI changes how students learn, how researchers discover, and how all workers do their jobs. Central to our approach is how we do this ethically, with the interests of all Californians firmly in mind. The University must truly be a place for lifelong learning, supporting Californians through future career transitions and evolving workforce demands.
Finally, I want to mention research, something I’ve been focused on since I joined UC: enhancing our research enterprise and also protecting it.
In December, I had the pleasure of joining our five UC-affiliated Nobelists in Sweden for Nobel week. It was a remarkable experience to be there, to hear their lectures, and celebrate them together with our Ambassador to Sweden and others. The extraordinary value of UC research was on display on the global stage, and it was heartening to see how many people from around the world recognize and respect the tremendous contributions our faculty make. Nothing made me prouder that week in Stockholm than to introduce myself as being affiliated with the University of California, where people asked, “How do you do it?” and I told them, “I don’t do it, it’s our faculty.”
We all know federal research funding under the current administration remains unpredictable. And policies such as H-1B visa fees and immigration restrictions have made international academic collaboration more difficult and the benefits from it more difficult to achieve. Not only is this disrupting current research, but it threatens lasting damage to the national science and innovation ecosystem that has been one of our country’s greatest strategic assets.
This work remains central to our agenda in 2026.
As I approach the six-month mark of serving as UC President — 3.5 years if you’re a dog — I remain optimistic about our direction and the incredible ways that UC continues to make a difference in the face of so many challenges.
Our path to success moving forward is two-fold: preserve what has made UC an extraordinary public university, while continuing to evolve, to innovate, and to ensure that this institution is responsive and meets today’s needs and tomorrow’s.
I am an optimist, but I’m not naïve about the work ahead. I look forward to working with this Board, and the rest of the UC community, and the many, many people across California who support our efforts as we do this vital work together. Thank you.