The board had voted March 15 to stop accepting additional applicants while still admitting incoming freshmen who had already received acceptance letters.
The vote was in response to a Wisconsin State Assembly Joint Committee on Finance proposal requiring the system to make an additional $21.8 million in budget cuts.
The cuts came shortly after the legislature had already voted to cut $51 million from the system's budget.
UW-system Board of Regents President Jay Smith said that when the additional cuts were announced, the board decided that expanding enrollment on the 26 Wisconsin campuses was unrealistic.
"We determined that the universities were over-enrolling based on the amount of funding that might be available," he said.
Smith said the system already had about 124,000 students enrolled and only about 8,100 openings remained for the next academic year.
After presenting its position to state officials, the Board of Regents received assurances from Gov. Scott McCallum and the Democratic Senate majority that the university system will not endure the massive budget cuts.
The Wisconsin State Assembly is scheduled to begin amending the state budget next week.
The reworking of the state budget is expected to ensure that the university system has to withstand only the original $51 million in budget cuts but not the additional $21.8 million.