GoKawiilState Funding for US Colleges Rose 4% in FY2025, But Inflation Erased Most Gains
The National Education Association's State Funding Update found state appropriations for higher education hit $129 billion in FY2025, up 4% year-over-year, but inflation-adjusted growth was only 2%. Seventeen states saw funding decline once inflation was factored in, and 12 states still haven't recovered to pre-pandemic inflation-adjusted funding levels. Many public universities also never fully restored per-student funding lost after the 2008 financial crisis.