New Jersey City University has agreed to pursue a merger with nearby Kean University, a move encouraged by state officials to help stabilize NJCU after financial struggles in recent years.
On Wednesday, NJCU’s Board of Trustees voted 7 to 0 to enter merger negotiations with Kean.
The vote comes two and a half years after NJCU declared a financial emergency, revealing that a surplus gave way to a budget deficit, prompting job cuts and state scrutiny. Then-NJCU president Sue Henderson stepped down in June 2024 amid backlash.
NJCU’s financial situation was so dire at the time that the state threw it a $10 million lifeline.
As NJCU has sought to dig out of its financial hole, state officials essentially sent a message to the public, four-year institution that it needed to find a partner—whether it wanted to or not.
A March 2024 report from an independent state monitor assigned in the aftermath of NJCU’s financial collapse urged the university to sell assets and “explore any type of affiliation or partnership that could help create long-term financial sustainability with improved student outcomes.”
Last April the Office of the Secretary of Higher Education set a deadline of March 31, 2025, for the university to identify potential partners as part of a transition plan that also called for the board to take actions to increase revenue and lower debt, among other efforts to fix NJCU’s finances.
Going Forward
NJCU’s board voted Wednesday “to enter into negotiations with Kean University for a Letter of Intent outlining the terms of a strategic merger,” according to the board resolution.
Kean’s proposed plan would rename NJCU as Kean Jersey City. The proposal notes that in addition to being near one another, the two universities are both minority- and Hispanic-serving institutions that “share a profound commitment to transformative urban education.”
Kean’s proposal emphasizes the integration of shared services, “streamlined administrative functions” and the “strategic alignment of academic programs”; it also touts its relative financial strength. Athletic programs would be combined as a “unified entity” under the merger plan.
Kean’s Board of Trustees would govern the merged institutions, though the proposal notes that membership could expand to include seats for representatives from the NJCU community. Potential board members would be appointed by the governor’s office.
NJCU interim president Andrés Acebo addressed the potential merger in a statement to campus, writing that there is more due diligence work ahead and promising transparency.
“I encourage every member of our community—students, faculty, staff, and alumni—to remain engaged as we build a future that honors our past while embracing new opportunities. With unwavering hope and a shared resolve, we will continue to shape NJCU into a beacon of opportunity and excellence for generations to come,” Acebo wrote in Wednesday’s message.
In a separate message, Kean president Lamont Repollet noted that “this is the beginning of a process that will unfold over the months and years to come and will include our faculty, staff, students and communities.” Repollet even used language that the Trump administration—which has taken aim at DEI efforts—has sought to banish.
“Both Kean and NJCU share missions dedicated to fostering an inclusive learning environment that empowers students to succeed,” Repollet wrote Wednesday. “By merging our strengths, we can deepen our commitment and resources to diversity, equity and inclusion, ensuring that every student has the support they need to thrive and persist through graduation.”
State officials issued their own messages applauding the move toward a merger.
In a joint statement from New Jersey’s Democratic governor, Phil Murphy, and state secretary of higher education Brian Bridges, officials said they were encouraged by the progress at NJCU.
“The NJCU Board’s intent to pursue a strategic merger with Kean University continues this commitment and marks the beginning of a thorough and deliberative process to unify these mission-aligned institutions. We look forward to working with state and institutional leaders on the path to a successful transition that empowers student success and long-term resilience,” they wrote.
Merger Outlook
The potential merger between NJCU and Kean—which still requires additional approvals, including by state officials and accreditors—appears to be the first one of the year.
News that the two institutions are taking steps toward a strategic partnership comes shortly after the collapse of a planned merger between the University of Findlay and Bluffton University. The two private, religiously affiliated institutions in Ohio first announced merger plans in March 2024. But despite a year of planning, Findlay’s board pulled out abruptly last week, surprising Bluffton.
One sticking point seemed to be athletics, as both intended to maintain separate programs, with Findlay competing at the NCAA Division II level and Bluffton remaining in Division III. But a statement from Findlay officials last week indicated that their efforts were hobbled by regulations that required a separate process for financial aid distribution and that “prohibit the sharing of resources and sports facilities, resulting in fewer synergies in those areas than originally anticipated.”
Last year brought multiple mergers and other strategic partnerships for both public and private colleges, many driven by financial issues and the search for efficiency.