The new agreement assures Wisconsin students will no longer pay less than their Minnesota counterparts at the U of M.
Higher education officials hammered out the new deal after the U threatened to pull out of the long-standing agreement that allows students to pay their home state tuition when they crossed the borders.
U of M officials claimed it wasn't fair for Minnesota students, and the university was losing tuition revenue on Wisconsin students who paid what amounted to a discounted rate.
Under the agreement, Wisconsin students will continue to pay their home tuition, but a portion of funds Wisconsin now pays to Minnesota's general fund will go directly to the U to offset the cost difference.
At their meeting, the Regents also approved plan to seek $239 million for construction and repair projects in the upcoming legislative bonding session.