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Enrollment at public colleges outpaced state and local support in fiscal 2025, leading to a 1% decrease in per-student funding compared to the prior year, according to the annual State Higher Education Finance report released Thursday.
State and local appropriations for public higher education rose to $130.7 billion in fiscal 2025, a 2.6% increase over the prior year after adjusting for inflation.However, full-time equivalent enrollment rose 3.6% during that period to 10.8 million students — surpassing the gains in public funding.
That resulted in per-student public funding declining to $12,082, down from $12,205 the year before, marking the first decrease since 2012.
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However, after adjusting for inflation, per-student public funding still remains 9.2% higher than levels in 2008. Per-student public support for higher education declined following the Great Recession but has been on the upswing for more than a decade.
Despite the overall gains, 24 states still give less support to higher education than they did before the Great Recession.
“While we are encouraged that public funding remained strong in 2025 and enrollment has continued to recover from pandemic lows, the first reduction in per student funding in more than a decade suggests we are moving into a period of increased volatility,” Rob Anderson, president ofState Higher Education Executive Officers Association, which produces the report, said in a Thursday statement.