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State Higher Education Funding

Higher Education Affordability through State Funding

State funding is an important piece of the puzzle when it comes to increasing the accessibility and affordability of higher education. Early data shows that states increased spending on higher education by 4.3% in fiscal year 2025 and topped $100 billion for the fourth year in a row, providing an estimated $129 billion in total. This is a positive trend, after years of underinvestment.

NCAN’s affordability gap research shows that nationally, fewer than half of all public community colleges and only around one third of public bachelor’s-granting institutions are affordable for students from low- and moderate-income families. Tuition at public colleges depends on what states allocate for higher education, with students paying more when state investment falls or fails to keep pace with inflation. The unpredictability of state budget processes can also make it difficult for students to budget for the cost of college and risks negatively impacting college persistence.

In the wake of recent cuts to social safety net programs and education spending at the federal level, it is imperative that states maintain, and wherever possible, increase funding for public postsecondary education. State support will ensure that students are better able to access and complete a college degree or credential. 

NCAN recommends that states:

  • Maintain or increase the proportion of state budgets dedicated to operational support for public colleges. 
  • Pass a budget each year without undue delay. 
  • Announce changes to tuition on a timeline that allows institutions and students to respond. 

State higher education funding resources: