Project Focus
“Hessischer Hochschulpakt from 2026” (Hessian Higher Education Pact from 2026)

On Thursday, 17 July 2025, the Presidents of the Hessian universities and the Hessian Ministry of Higher Education and Research, Arts and Culture signed the “Hessischer Hochschulpakt” (Hessian Higher Education Pact) for the years 2026 to 2031. The Higher Education Pact defines state funding for all universities in Hesse. In light of tax revenues falling short of projections, the universities are facing substantial structural cuts – a political framework set by the Hessian state government.

Since 2002, the funding of universities in Hesse has been defined by Higher Education Pacts, negotiated between the State of Hesse and its 14 universities. The funds provided through this pact consist of a so-called base budget and a performance-based budget. Allocations within the base budget – which constitutes the majority of funding – are based on student enrolment figures dating back to 2020. Allocations within the performance-based budget are tied to the achievement of specific targets in the areas of research, teaching, gender equality, and internationalisation.

Key points of the pact include: a reduction of university budgets by 30 million Euros in 2026, a revision of performance indicators, no comprehensive funding to offset the public-sector pay scale increases in 2025, and only limited compensation for pay increases in 2026. Expected increases in staff costs in 2027 and subsequent years will be covered by the State of Hesse only up to a growth rate of 2.5 % and above a threshold of 4 %. Compensations will be executed in the year following an increase. Universities may thus be required to bear part of the costs themselves. Inflation-driven increases in material as well as operating costs will not be compensated.

The agreement puts tremendous pressure on Hessian universities to undergo structural change. Due to the revised performance indicators, the resulting burdens will not be distributed evenly among universities. Universities are already dealing with an existing deficit. Previous increases in university funding have been entirely absorbed by significant growth in construction and energy costs, as well as the need to finance additional tasks. With further increases in pay scales and inflation expected, the universities’ deficits will continue to grow over the next six years. Hessian universities anticipate a total budget shortfall of around one billion Euros – equivalent to 10 % of their total personnel expenditures. This means that universities are forced to decrease over the course of the coming years.

Adjustments and structural changes will be imperative. They need to be dealt with in a responsible manner, in dialogue with the departments and the governing bodies of the universities.

President Tanja Brühl and Vice President for Administration and Financial Affairs Martin Lommel assess the outcome and its implications for TU Darmstadt:

“The Hessian Higher Education Pact will significantly weaken Hesse’s volume and strength for innovation and competitiveness. As universities, we essentially contribute to the economic development and resilience of our country through research, teaching, and Third Mission activities. The cuts set down in the pact put these powerful contributions at risk for a long time to come. The cuts will directly affect our university. Adjusted for inflation, the budget for TU Darmstadt will remain at the 2010 level – even though our student numbers have increased by 20 % since then. Third-party funding competitively raised by TU Darmstadt researchers has grown by more than 50 %. We have successfully translated scientific innovations into market-ready solutions through an impressive number of start-ups.”

As universities, we essentially contribute to the economic development and resilience of our country through research, teaching, and Third Mission activities. The cuts set down in the pact put these powerful contributions at risk for a long time to come.

TU President Tanja Brühl and TU Vice President for Administration and Financial Affairs Martin Lommel

President Tanja Brühl and Vice President for Administration and Financial Affairs Martin Lommel further state: “Expected increases in personnel and operating costs will lead to a budget deficit for TU Darmstadt. We need to offset this deficit through cuts in all sections of our university. We will handle this process in a responsible manner and in close dialogue with the members and organisational units of our university. We are grateful to all colleagues and students who have continuously raised their voices for TU Darmstadt and for strong conditions for science and research in Hesse over the past weeks. The outcome of the negotiations does not reflect what we had expected for TU Darmstadt.”

Our course of action:

We will handle the limitations set by the Hessian State Government with utmost responsibility – despite vitally disagreeing with the imposed obligation to make substantial cuts. We will concentrate on the university’s core strengths and profile. This does imply, however, that we will not be able to fill some positions nor to continue some of our essential tasks and services.

We aim to devise the process of focusing our activities as transparently and participatory as possible. Based on clear and comprehensible parameters and criteria, the Executive Board will make feasible decisions. We will keep you informed throughout this process – via this website, in meetings of the Senate and University Assembly, and through a variety of dialogue formats.

Timeline – Current Activities

Central Administration and Central Services:

July: The scenarios for prioritisation are being reviewed by the Executive Board, and proposals for cuts are being discussed.

Summer: The Executive Board will take decisions, inform the heads of the directorates, staff units and central services, and involve the Staff Council.

Departments:

July/August: Meetings between the President and Vice President for Administration and Financial Affairs and the Deans and Managing Directors of the departments

By the end of November: Departments will develop proposals for the development of their respective units

December: The Executive Board will review the submitted proposals

January 2026: The Executive Board will consult and take decisions, following the same process as in July 2025

Facts and Figures

Drivers of transformation: 72.7% of companies expect innovation impulses through knowledge transfer. 60.2% specifically cite research collaborations and support for start-ups.

Urgent demand for STEM professionals – critical for their innovation capacity: The proportion of top-performing students in mathematics (PISA) has halved – from 17.5% in 2012 to just 8.6% in 2022. Germany's share of STEM graduates (relative to the working population) lags behind France, the UK, South Korea, and Denmark.

International students as a valuable talent pool: Germany ranks third globally – after the UK and the US – in the share of international students. International graduates who pursue careers in Germany generate substantial long-term fiscal benefits.

Conclusion: Universities are key players in securing Germany’s innovation and competitiveness. To unlock their full potential, targeted investments are needed – in STEM education, research, academic upskilling, and the integration of international students.

Source: The Role of Universities in Economic Transformation (IW Policy Paper 10/2025)

Innovations for Tomorrow: Through cutting-edge research in its core areas of expertise, TU Darmstadt boosts innovations and trailblaizing solutions to address pressing global challenges – such as decarbonisation, digitalisation, and demographic change. With more than 200 million Euros in third-party funding (2024), TU Darmstadt ranks among the top research-intensive universities in Germany.

Highly Skilled Professionals: TU Darmstadt educates those STEM professionals industry and society urgently need, attracting international talents with high potential. 60% of its master graduates remain in the region; nearly 40% of TU Darmstadt master students are international students.

Start-ups and Entrepreneurship: The start-up ecosystem surrounding TU Darmstadt is ranked among the top five in Germany by the Start-up Monitor. The university is one of the ten higher education institutions with most patents in Germany and plays a leading role in technology transfer. Close partnerships with industry and active support for start-ups and spin-offs help create new companies and jobs. Renowned start-ups such as ISRA Vision, Riese & Müller, and Focused Energy originate in the TU environment.

Engine of Economic Growth: TU Darmstadt generates an annual gross value added of approximately 1 billion Euros. We employ around 5,000 heads and, through procurement and consumption of its staff and roughly 24,000 students, secure many more jobs within the region.

Conclusion: TU Darmstadt is a key driver of innovation, talent development, and reinforces a resilient, democratic society.

Cuts to the university budget severly hazard these essential functions as well as the region’s long-term competitiveness.