Protecting and Promoting School Choice

EFI Publications

State Funding Per Student in Higher Ed Drops in 2025

For the first time in years, per-student state funding for higher education has declined in fiscal year 2025. Enrollment at public colleges grew faster than increases in state and local support, according to an annual report. This marks a shift after consistent funding growth in previous years.

Key Points

  • Per-student funding dipped due to enrollment gains outpacing state and local support increases.
  • This is the first decline in per-student funding in several years.
  • The data comes from an annual report on public higher education funding.

Implications for Educational Freedom

Reduced per-student state funding in higher education could highlight inefficiencies in government spending, potentially encouraging exploration of alternative funding models like vouchers or private options to enhance educational freedom. This may empower students and families by reducing reliance on overreaching public funding structures.

Source: Per-student state funding for higher ed dips for first time in years

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