A legislative committee in the Wisconsin State Assembly passed a proposal on Friday -- just prior to the board's decision -- requiring the system to make more than $20 million in additional budget cuts.
The assembly already had voted to slash the system's budget by approximately $50 million.
System officials said the state's mounting deficit conflicts with the board's specific goal to expand the universities.
"You can't serve more students with less money," said Gerard Randall Jr., vice president of the Board of Regents. "And we are still committed to serving more students. That commitment didn't go away with each successive budget."
According to the decision, only the incoming freshmen who had been notified of their acceptance prior to last Friday will be allowed to enroll for the fall.
Randall said he hopes the suspension will be short-lived, but added that it provides the necessary time to determine the plausibility of admitting additional students when there is little funding.
"It gives constituencies a better idea of the importance of the university," he said. "The attention is there, and we hope the appreciation is there too."
The decision to freeze admissions comes on the heels of application deadlines at four of the system's largest schools: UW-Madison, UW-Eau Claire, UW-Green Bay and UW-La Crosse.
Randall said the suspension might leave UW-Madison close to 2,000 short of their target class of 5,740 for next year.