34. Re-invest in higher education and limit funding cuts
Here’s what the federal government can do:
- Congress should fund institutions of higher education both directly and through federal student aid.
- Congress should structure federal funding for higher education to incentivize increased state investments.
- Congress should identify metrics for evaluating whether higher education institutions are adequately and equitably funded by states.
Here’s what state government can do:
- State legislatures should identify metrics for evaluating whether two- and four-year public colleges and universities are adequately and equitably funded in their states.
- State legislatures should provide adequate and equitable state funding to public colleges and universities, limit state cuts to higher education, and reinvest in their public higher education systems in order to receive additional federal funds.
- State legislatures should establish consistent funding formulas to support public higher education institutions by considering enrollment rates and accounting for inflation.
Higher education serves as a catalyst to build a skilled workforce, drive innovation, and foster economic growth. Robust investment in higher education is essential for a student’s individual success and also for the prosperity of their communities. When states sacrifice funding for public higher education institutions, they can disproportionately harm underserved students and their communities. State funding for higher education has not kept up, and over the last decade, 32 states saw a $1,500 average decline in spending per student — resulting in increased out-of-pocket costs and borrowing for college students. [i] When public universities face funding cuts, they often reduce spending for support services and increase tuition, resulting in greater barriers to graduation for Black and Latino students. [ii] Decreases in state funding have been linked to lower graduation rates at four-year colleges and universities. [iii] Congress and state legislatures should reverse funding cuts in higher education and deepen their investments, which will reap gains in economic growth and mobility. In addition to ensuring core funding is maintained or increased, even in times of economic downturn, Congress should provide targeted institutional funding [iv] to incentivize and reinforce equitable practices by colleges and universities.
[i] “The Higher Ed Funding Rollercoaster State Funding of Higher Education During Financial Crises,” National Education Association, October 25, 2022. https://www.nea.org/he_funding_report.
[ii] Bound, John; Braga, Breno; Khanna, Gaurav; & Turner, Sarah. “Public Universities: The Supply Side of Building
a Skilled Workforce,” National Bureau of Economic Research, June 17, 2019. https://www.nber.org/papers/w25945.
[iii] Jimmerson, Annahita. “New Analysis Finds That You Get What You Pay for: State Higher Education Funding Directly Impacts Student Success,” State Higher Education Executive Officers Association, May 18, 2021. https://sheeo.org/new-analysis-finds-that-you-get-what-you-pay-for-state-higher-education-funding-directly-impacts-student-success/.
[iv] See, for example, “Postsecondary Student Success Program,” U.S. Department of Education, July 28, 2023. https://www2.ed.gov/programs/pssp/index.html.