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Norway’s Universities Hold Record 5.3 bn NOK Unused Funds as 5% Rule Sparks Policy Debate

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Record‑size reserves and 5 % cap pressure At the start of 2026 Norwegian state universities and colleges reported a combined 5.3 billion NOK in unspent allocations, a rise of 1.5 billion NOK from the previous year and the highest total since 2014 [1][4]. The Ministry of Education’s 5 % rule, introduced in 2021, limits how much of an annual grant can be kept as general reserves, forcing excess funds into investment‑linked accounts or back to the state [1][4][3]. Because the rule excludes “other purposes” from rollover, institutions have built large cushions while still being barred from using them for day‑to‑day operations [1][4].

NTNU leads with idle funds and warns of a “disease” NTNU alone holds about 1.3 billion NOK of unused money, of which roughly 920 million NOK is tied to stalled investment projects [4][1]. Director for organisation and infrastructure Bjørn Haugstad described the chronic under‑spending as a “disease” that threatens PhD recruitment and research talent if it persists [1][4]. He also criticized the 5 % rule for its narrow view of university finances, arguing it reduces flexibility for long‑term planning [1][2].

Auditor and government calls for better use of cushions Both the Office of the Auditor General and the Ministry have previously flagged the growing reserves as problematic, urging universities to deploy the funds more effectively [4]. Recent parliamentary discussions propose raising budget ceilings so institutions can finance half of large‑scale building projects without jeopardising core activities [6]. Minister of Research and Higher Education Sigrun Aasland emphasized that any financing reforms must protect teaching and research functions [6][3].

SAFE anti‑fraud centre launched with 50 m NOK backing NTNU inaugurated the Secure Anti‑Fraud Excellence (SAFE) centre, a five‑year initiative funded with 50 million NOK from Sparebankstiftelsen Hedmark, Sparebank1 Østlandet and tech firm Mobai [1][2][7]. The centre, led by Professor Raghavendra Ramachandra, will focus on digital fraud detection for the financial sector and biometric security [1][7]. Its creation coincides with a broader governmental push to strengthen defence and security research, including a new 132 million NOK annual defence‑research budget [5].

Høyre’s new leadership pushes knowledge‑policy agenda On 14 February the Conservative Party elected a trio—Ine Eriksen Søreide, Henrik Asheim and Ola Svenneby—as its top officials, prompting calls for a stronger knowledge policy focus [2]. Party members urged an end to the “tullefag” debate, a raise of public R&D spending to 1.25 % of GDP by 2030, and constitutionalisation of academic freedom [2]. These proposals aim to counter the recent decline in research expenditure and staffing reported for 2025 [7].

Research spending drops for first time since 1960s, minister defends record Data from Oslo Economics and Nifu show that total research outlays, researcher numbers and full‑time equivalents fell in 2025—the first simultaneous decline in decades [7]. Høyre MP Monica Molvær warned this could push Norway down to 15th place in Europe for research investment [7]. Research Minister Sigrun Aasland countered that historic public funding remains strong thanks to pandemic‑era supplements and new life‑science, quantum and AI programmes, though she acknowledged limited fiscal space for further growth [7][5].

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Timeline

1960s – Norway experiences its first simultaneous decline in research expenditure, researcher numbers and full‑time equivalents, a downturn not seen again until 2025. [9]

2014 – Unused higher‑education grant balances set a previous high, establishing a benchmark that will later be surpassed. [3]

2021 – The Ministry of Education introduces the “5 % rule”, limiting universities to roll over only 5 % of annual grants as general reserves, a policy later criticised for curbing long‑term planning. [1][3]

2023 – The government creates an expert panel led by Professor Silje Haus‑Reve to review doctoral education, tasked with delivering a report by March 2027; the same year the budget removes earmarked funding for recruitment PhD positions, giving institutions discretion but exposing them to cuts. [7]

2025 – Total university research spending falls for the first time since the 1960s, with a 5.4 % drop in R&D and a decline in researcher headcount; a pandemic‑era survey finds 70 % of full‑time students report lower learning outcomes. [9]

Jan 2026 – Unused higher‑education funds reach a record 5.3 bn NOK at the start of the year, 1.5 bn NOK above 2025 levels, reflecting the impact of the 5 % rule and delayed investment projects. [1][3]

Jan 2026 – The Norwegian Polar Institute becomes a full voting member of the European Polar Board, a step Director Camilla Brekke calls “an important new chapter” for Norway’s polar research coordination. [6]

Feb 14 2026 – Høyre elects a new leadership trio (Ine Eriksen Søreide, Henrik Asheim, Ola Svenneby), prompting calls to prioritise knowledge policy, raise academic standards and pursue a cross‑party pact to lift public R&D spending to 1.25 % of GDP by 2030. [2]

Feb 2026 – The government declares 2026 “Total Preparedness Year” but provides no dedicated baseline funding for knowledge readiness; Minister Sigrun Aasland earmarks NOK 1.3 bn for student bus shelters while NTNU’s Magnar Bjørås likens the split‑funding model to “building a factory without buying raw materials”. [4]

Feb 19 2026 – Parliament backs a financing review that would apply a hospital‑style cost‑sharing model to the five self‑governing universities; union leader Ellen Dalen warns it “contradicts the Storting’s intent and could jeopardise core university functions”. [5]

Feb 19 2026 – The Research Council approves an annual NOK 132 million defence‑research portfolio for at least five years and earmarks NOK 400 million for new defence research centres slated to start in 2027, each receiving NOK 60‑80 million over five years. [6]

Feb 2026 – NTNU launches the Secure Anti‑Fraud Excellence (SAFE) centre with NOK 50 million funding, led by Professor Raghavendra Ramachandra, to combat digital fraud after 2024 losses of NOK 1.2 bn. [1][9]

Feb 2026 – NTNU director Bjørn Haugstad criticises the 5 % rule, saying it “stems from a narrow understanding of how universities function and reduces financial flexibility”, and warns that under‑spending signals a “disease” in the sector. [1][3]

2026 (throughout) – Large‑scale student protests erupt in Iran, the biggest since the January crackdown, while a shooting at South Carolina State University in the US leaves two dead, underscoring global challenges to knowledge preparedness. [1][4][5]

2026 (planned) – Høyre’s policy agenda includes a proposal to constitutionalise academic freedom, backed by Forskerforbundet and the Norwegian Student Organisation, and to end the “tullefag” debate to raise academic standards. [2]

2027 (expected) – The defence research centres funded in February 2026 begin operations, each focusing on strategic priorities such as societal resilience and economic security. [6]

Mar 2027 (expected) – The expert panel on doctoral education, chaired by Professor Silje Haus‑Reve, delivers its final report assessing the impact of the 2023 removal of earmarked PhD recruitment funding. [7]

2030 (target) – A cross‑party research pact aims to raise public R&D spending to 1.25 % of GDP, addressing the 5.4 % decline reported in 2025 and Norway’s slip to 15th place in Europe for research investment. [2]

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