2024-05-13
|
Study Abroad
Federal Stimulus Boosts State Funding for Higher Education
Unsure how US college funding works? This explains how recent US government aid might benefit YOU!
Federal Stimulus Boosts State Funding for Higher Education
A new report reveals that state appropriations and higher education enrollment have reversed after a short-lived recession in 2020 caused by the pandemic. Net FTE enrollment fell 0.5% to 10.2 million students in 2023, marking 12 years in a row of declines. The figure has plummeted 12.1% since 2011, when it peaked following the Great Recession. Net tuition revenue per FTE also declined, falling an inflation-adjusted 3.3% in 2023. Despite these declines, many public institutions have been enjoying increases in public funding support. State and local government support for higher education reached $129.8 billion in 2023, with $1.7 billion coming from federal coronavirus relief given to states. Federal stimulus and relief funds continued to be helpful in 2023, supporting total state revenues, reducing budget strain, and providing more freedom for states to show commitment to higher education. Despite the coronavirus relief money and enrollment declines, appropriations per FTE would have risen 5.8% beyond inflation since 2020. SHEEO President Robert Anderson praised the continued commitment in many states to fund financial aid and their public institutions. However, not every public college is seeing these benefits. Education appropriations in 25 states have not returned to levels seen before the Great Recession.
