GREAT FALLS — The University of Providence has officially declared financial insolvency, citing major financial concerns in 2026. The decision comes after Providence Health System announced that it will discontinue its financial assistance to the school by the end of 2027, leaving the institution with an $8 million annual deficit to cover.
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“We already started doing some looking at all our programs… building efficiencies,” said interim president Dr. Caroline Goulet. “More to come in January and probably at a faster pace.”
When the institution heard that its financial "runway" had come to an end, the administration began planning for long-term viability. "We knew that we couldn't wait until… fall 2027 to do that," Goulet recalled.
Declaring financial exigency allows institutions to implement significant cost-cutting measures such as hiring freezes, salary reductions, program suspensions, and staff layoffs. UP had already begun to cut its budget, but an enrollment drop in Fall 2025 heightened the necessity.
“As soon as I came into position on July 1st, we started looking at the budget and saying, okay, let's try to cut five million. Then the fall happened,” Goulet explained.
To prepare for 2026, the institution plans to discontinue numerous small certificate programs that typically enroll one or two students. They will also divert faculty attention away from certain graduate programs, such as the nurse practitioner program, and toward more in-demand bachelor's degrees.
"A lot of our smaller certificate programs we created because the health care system would say, 'oh, it would be good to have a health informatics program,' but then we never tracked in more than 1 or 2 students," Goulet told me.
Despite the challenges ahead, UP is asking the community for help—whether through enrollment, financial assistance, or prayer.
“Send us students… We always take prayer, and we're not going to say no to financial support,” Goulet said.
While the process will be challenging, the institution remains optimistic that taking decisive action now will lead to a more stable and sustainable future.
Here is a news release from the school:
The University of Providence (UP) Board of Trustees has formally declared financial exigency, a proactive and responsible step that enables the institution to restructure its operations, realign academic and administrative functions, and secure a sustainable future.
Financial exigency is a formal designation used in higher education when an institution faces significant financial pressures that threaten long-term viability.
This designation gives the University the authority and flexibility to enact substantial organizational changes—particularly reductions in operational spending, personnel structures, and academic offerings—that cannot be accomplished through traditional budget adjustments alone.
“The declaration of financial exigency is an instrument that empowers us to act decisively and with a mission-oriented mindset,” said Dr. Caroline Goulet, newly appointed President and Provost of the University of Providence. “Our foremost commitment is to our students. This step allows us to stabilize the institution so we can continue to provide them with high-quality education, personalized support, and a path to degree completion. Through a deliberate, phased approach, we will rebuild a strong foundation for UP’s long-term future.”
The University will implement a three-phase plan to stabilize operations, rebalance its academic and administrative structures, and set the conditions for future strategic growth. Although this work will involve further reductions in spending, operational consolidation, potential personnel changes, and adjustments to academic offerings, UP leadership affirmed that every decision will be guided by the University’s mission and the best interests of its students.
While this decision may understandably cause concern or anxiety, UP emphasized that the measure is grounded in a singular priority: placing students first—today and for generations to come.
Throughout the process, the University will provide clear, consistent communication with students, faculty, staff, and partners. It has launched a webpage dedicated to financial exigency, featuring frequently asked questions and periodic updates. UP remains fully committed to ensuring academic continuity, supporting student needs, and maintaining pathways to timely degree completion.
“The path ahead will require difficult choices, but it will also allow us to renew and strengthen the University of Providence,” said Dr. Goulet. “students remain at the heart of every decision we make, and this action positions us to serve them more effectively, both now and in the years ahead.”
