""softening,""
""Pre-pandemic, it might have been harder to absorb this kind of slower growth, but because we have so many good years, we feel less panicked about what this could mean,""
""We're starting to see higher ed serving once again as the balancing wheel that it has been in the past when there are econom"
Taxpayer funding for public higher education increased 1% in FY2026 to $133.1 billion across all 50 states and D.C. This is the smallest year-over-year growth since the COVID-19 peak in FY2021 (0.6%). Between FY2022 and FY2025, year-over-year changes averaged 7.8%. Slow nominal growth combined with 2.7% inflation means many state institutions will face effectively flat funding. Many FY2026 appropriations were set before Congress passed the One, Big Beautiful Bill, expected to cut state Medicaid subsidies by $840 billion over 10 years. Those cuts could force states to find revenue or reallocate budgets, often reducing higher education funding. Strong prior surplus years may help universities absorb modest declines.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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