Latest News: State Policy & Advocacy

State of the States: Governors and State Legislators Prioritize Postsecondary Education in 2022

Wednesday, April 20, 2022  
Posted by: Raymond AlQaisi

By Raymond AlQaisi, Senior Manager of Policy and Advocacy

Reading time: 5 min.

While we’re only four months into the calendar year, many state legislatures are already wrapping up their 2022 legislative sessions. By the end of April, more than half of the states will have adjourned (this count includes a few states that did not convene this year).

With legislators trying to get their bills over the finish line, we may soon have some big state postsecondary education policy developments to share. Rest assured, NCAN will keep members updated on progress toward our state policy priorities for college attainment and any promising proposals that make it through statehouses.

So, what’s happened so far this year in state postsecondary policy?

First, some context: States are rebounding from the pandemic and overall are seeing improved economic conditions. The recovery is due in large part to pandemic relief funding provided by the federal government. In light of this, state funding for higher education appears to be faring quite well.

State higher education funding actually increased for fiscal year 2022, according to a recent report by the State Higher Education Executive Officers Association (SHEEO). This is the largest overall increase we’ve seen since the Great Recession, a period marked by cuts to higher ed funding.

At the start of the year, most state governors highlighted these trends in their “State of the State” addresses, speaking about the positive impact of federal COVID-recovery assistance for their states. Governors also used these public speeches to outline their higher education priorities, including new investments and efforts to address college affordability, expand need-based aid, keep college tuition level, and develop new “free college” programs.

According to an analysis by the Education Commission of the States: four governors spoke about postsecondary attainment goals; 11 governors mentioned state student grant aid; and 14 governors commented on college tuition and student debt. Per the National Governors Association, governors in 38 states spoke about higher education funding and 19 governors discussed the need for additional support and services for students, such as mental health supports, child care, and food and housing resources.

The fact that governors focused on college access, affordability, and attainment issues signaled that state legislatures might try to tackle higher education issues in 2022. Below are just a few examples of state efforts NCAN is following. As legislative sessions end and lawmakers pass more bills, NCAN will share updates with our members.

Universal FAFSA Completion

Given the pandemic's negative impact on indicators of college access and enrollment, many states are focused on ensuring their high school seniors complete the Free Application for Federal Student Aid (FAFSA). A promising state policy gaining a lot of traction is universal FAFSA completion, which requires students to file the federal student aid form prior to high school graduation (though there is usually an opt-out provision).

Last year, a few more states enacted universal FAFSA policies. Notably, the policy appears to be having a positive impact in Alabama and Texas, which are both in year one of implementation and experiencing big gains in completion.

This session, states considering universal FAFSA policies are not taking a unified approach. While there is wide consensus on making FAFSA a strong priority for high school seniors, some states are not yet committed to having it be a formal step toward graduation.

Take Indiana, for example – the state legislature was considering a universal FAFSA bill for the third consecutive year. Legislators sought a way to meaningfully increase FAFSA completion and boost postsecondary enrollment. Ultimately, after deliberation, the legislature did not pass a universal FAFSA policy. Instead, elected officials passed a version of the bill that asks schools to provide more information on the FAFSA to high school seniors and their families.

Universal FAFSA bills are also being considered in Florida, Hawaii, Minnesota, Nebraska, New York, and South Carolina, but none of the states have passed the policy yet this session.

Need-Based Student Aid

Another big challenge for states is to address the growing issue of college affordability. Last year, NCAN research revealed that students from low-income backgrounds faced a dwindling number of affordable public postsecondary options across the country. At the same time, the average amount of unmet financial need for these students has risen substantially. These trends reflect pre-pandemic data and likely have not improved materially.

States must invest in need-based financial aid programs to support students who may not have the financial means to cover the cost of higher education.

There appears to be movement in some states on student grant aid. Pennsylvania, for example, is proposing substantial additional investment in its state grant program. The state says through more funding it can expand grant aid to 24,000 more students.

Georgia is a unique case; it is one of just two states that do not have a need-based grant aid program. But is looking to change that and formally enact one this session. While the program intends to address unmet need for college students, the proposed allocation likely will not be sufficient to meet existing student need.

In California, there is a revived effort to dramatically expand the state’s grant aid program, the Cal Grant. This follows a program reform victory in the last state budget, which enacted a substantial eligibility expansion that enabled almost 100,000 more community college students to receive aid. This cycle, supporters of aid reform are again driving a broader attempt to simplify and reduce barriers to aid. The current proposal would provide an estimated 150,000 additional students with grants. Despite receiving unanimous support in the legislature last year, this additional expansion proposal was vetoed by the governor.

NCAN Member Resources

NCAN’s state policy priorities page offers resources and recommendations for states looking to advance strategies to promote equitable access, affordability, and attainment in postsecondary education.

In 2021, NCAN commissioned a study, in partnership with the Education Commission of the States (ECS), to survey members regarding their states' postsecondary education policy priorities and supports the field needed to lead successful state initiatives. Their insights are captured in a summative state policy report and individual state reports.


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(Photo by Allison Shelley/The Verbatim Agency for EDUimages)