University of Oregon officials announced a $1 billion donation from Phil Knight, co-founder of Nike, and his wife, Penny, marking the largest known gift ever made to a public flagship university in the United States. The contribution, revealed on Wednesday, will establish a new engineering college at the university and raises the Knight family’s total giving to Oregon to more than $2 billion.

The donation is intended to expand Oregon’s academic offerings beyond its current engineering minors and graduate programs by creating a full undergraduate engineering program. University leaders expect the development and growth of the college to take around a decade. According to Bob Guldberg, vice president and professor of bioengineering at Oregon, the program aims to address a statewide shortage of engineers.

Karl Scholz, president of the University of Oregon, described the gift as a significant endorsement of the institution’s mission amid ongoing financial challenges. The university has faced budget cuts totaling about $65 million amid concerns over declining enrollment, particularly from out-of-state students who typically pay higher tuition rates. Approximately 43 percent of the school’s nearly 21,000 undergraduates last fall were from outside Oregon, providing vital budget support.

The donation also comes at a time when public universities face broader uncertainties, including demographic trends indicating lower future student populations and federal efforts to reduce research funding. Scholz emphasized the importance of the gift during a period when higher education institutions feel "under siege," calling it “tremendous news” for the university.

The Knights’ philanthropy has long been associated with the University of Oregon, with earlier contributions funding the Knight Campus for Accelerating Scientific Impact and major athletic facilities. The family’s generosity extends beyond Eugene; last year, they pledged $2 billion to Oregon Health & Science University to support its cancer institute, a gift regarded as the largest single contribution to any American university.

Phil Knight, now 88, co-founded Nike in 1964 alongside his former University of Oregon track coach. The school’s close ties to the company have led some to refer to it informally as "the University of Nike." While known for extensive support of athletic programs, the Knights’ latest contribution underscores a commitment to academic development.

In a statement, Knight highlighted the need to continue investing in higher education, describing it as "no time to abandon" American universities. While the donation is a historic financial boost, Oregon’s leadership acknowledges ongoing fiscal pressures and the need to carefully balance budgetary constraints with the university’s future ambitions.

Scholz noted the challenge of simultaneously managing budget reductions and celebrating the extraordinary gift, stating that discussions will focus on defining the university’s role and priorities in the years ahead.