New Grapevine Data Shows Softening State Support for Higher Education in FY 2026

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The State Higher Education Executive Officers Association (SHEEO) today released the latest Grapevine data, providing an initial look at state support for higher education in Fiscal Year 2026. The latest findings reveal that state support reached $133.1 billion, an increase of 1.0% over Fiscal Year 2025.[1] This represents the smallest year-over-year increase in Grapevine reporting since 2021, when state support increased by 0.6%. Between Fiscal Years 2022 and 2025, year-over-year changes averaged 7.8%. The latest 1.0% increase represents the fourteenth straight year of non-inflation adjusted increases in state support for higher education. 

Key findings from the FY 2026 tables include:

  • Slowing Growth in State Support. Between FY22 and FY25, state support increased nominally by at least 6.7% each year, mirroring strong state revenue growth coming out of the COVID-19 pandemic. The 1.0% increase in FY26 mirrors the less robust tax revenue growth states have experienced lately.
  • State Level Differences. While 33 states reported increases in state support, ranging from 12.1% in Montana to 0.1% in Florida, 17 states and Washington, D.C., reported decreases in state support, ranging from -13.6% in Arizona to -1.6% in North Carolina. Seven states reported reductions in higher education support of 5.0% or more, while only five states reported increases of the same caliber.
  • Improvement in State Effort. Due to robust increases in state support, buoyed by federal stimulus funding coming out of the COVID-19 pandemic, state effort to support higher education increased over the last five years. State support per $1,000 of personal income increased 5.3% from $4.86 in FY21 to $5.12 in FY26. However, state support per $1,000 of personal income has not kept pace with recent income growth, as the $5.12 reported in 2026 is 3.9% below 2025 and 3.2% below 2024. State support per capita increased nearly 32% between 2021 and 2026. The $390 in state support per capita nationally was 0.5% higher than 2025 and 6.0% higher than 2024. 
  • Uses of State Support: Of the total state support in FY 2026, 47.6% was allocated to operational support at public four-year institutions, while 20.9% supported operations at public two-year institutions. Financial aid accounted for 12.9% of state support, research, agriculture, and medical appropriations accounted for 10.8%, and an additional 7.8% was appropriated for other uses, which could include non-credit and continuing education appropriations or operational support to independent institutions and/or state agencies.

The full Grapevine report, including tables summarizing the results of the FY 2026 Grapevine survey, can be found on the SHEEO State Higher Education Finance (SHEF) website at https://shef.sheeo.org/grapevine. 

[1] Grapevine values are not adjusted for inflation. While actual inflation data are not available for fiscal year 2026, data for the first 6-months of most states’ fiscal years (July – December) show inflation increases between 2.7% and 3.0%. https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm

About Grapevine

Since 1961, the Grapevine report has provided the earliest look at state support for higher education in the current fiscal year. Grapevine provides initial data on state tax support for higher education, including general fund appropriations for universities, colleges, community colleges, and state higher education agencies. Prior year data are revised and updated with each data collection as final appropriations become available. Grapevine data are presented in their raw form; they are not adjusted for inflation or any other measures. 

About SHEEO

The State Higher Education Executive Officers Association (SHEEO) serves the chief executives of statewide governing, policy, and coordinating boards of postsecondary education and their staff. Founded in 1954, SHEEO promotes an environment that values higher education and its role in ensuring the equitable education of all Americans, regardless of race/ethnicity, gender, or socioeconomic factors. Together with its members, SHEEO aims to achieve this vision by equipping state higher education executive officers and their staff with the tools to effectively advance the value of higher education, promoting public policies and academic practices that enable all Americans to achieve success in the 21st century, and serving as an advocate for state higher education leadership.

Annual Grapevine Data show initial 4.3% increase in state support for higher education

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Data reported by states in the latest Grapevine survey indicate that initially approved state support for higher education in fiscal year (FY) 2025 reached $129.1 billion, a 4.3% increase over 2024.[1] This is the fourth year state fiscal support for all higher education has topped $100 billion. This increase reflects a 32.9% increase over the past five years. Tax appropriations, non-tax support, non-appropriated support, and returns from state-funded endowments make up total state support. The Grapevine report provides a first, tentative look at state higher education funding in the new fiscal year. However, an important caveat is that the Grapevine data do not account for inflation.[2]

States allocated 2.2% more federal funding to support higher education than in FY 2024. The additional $637.9 million in federal stimulus funding brings the total state fiscal support for higher education in FY 2025 to $129.7 billion.[3]Since 2020, states have allocated more than $10 billion in federal stimulus to higher education.

Grapevine data are collected annually by the State Higher Education Executive Officers Association (SHEEO). The FY 2025 data represent initial allocations and estimates reported by the states from October 2024 through January 2025 and are subject to change. 

Excluding federal stimulus dollars, seven states saw increases of at least 10% since 2024. Including federal stimulus, six states saw increases greater than 10%. Only two of those states, Nebraska and Kansas, saw increases greater than 15%, both with and without federal stimulus.[4] Eleven states reported an overall decline in state support, including federal stimulus funding, between 2024 and 2025. Nine states had one-year declines excluding federal stimulus. 

The Grapevine tables include data on how total higher education state support allocations were used across two-year public operating, four-year public operating, state financial aid, research, and other uses for FY 2025. While state allocations across each area are not final and include estimates for several states, initial appropriations to each area were as follows: 

  • $27.6 billion to two-year public operating.
  • $62.5 billion to four-year public operating.
  • $16.1 billion to state financial aid for all students. 
  • $14.4 billion to research, agriculture extension, hospital extension and medical schools.
  • $8.5 billion to other uses, including agency funding, private institution operations, and non-credit appropriations. 

The full Grapevine report, including tables summarizing the results of the FY 2025 Grapevine survey and a complete dataset of state support for higher education going back to 1980, can be found on the SHEEO State Higher Education Finance (SHEF) website at https://shef.sheeo.org/grapevine. 

[1] FY 2025 marks the ninth year Grapevine has included Washington, D.C., in its survey. Washington, D.C., is excluded from all state counts and U.S. totals. The data reported by the District of Columbia, including federal stimulus funding, reveal a 0.9% increase in the last year. However, including federal stimulus, support has decreased by 9.5% since 2020.

[2] While actual inflation data are not available for FY 2025, forecasts suggest the U.S. will face 2.1% inflation over FY 2024. Source: OECD Economic Outlook: Statistics and Projections, Inflation Forecast Indicator https://data.oecd.org/price/inflation-forecast.htm.

[3] Federal stimulus funding was awarded to states for higher education to stabilize state and local sources of funding, and to provide additional resources during COVID-19. Federal stimulus funding excludes funds allocated to public capital projects and any funds (such as HEERF) allocated directly by the federal government to institutions or students.

[4] In 2025, Nebraska replaced local property taxes for community college operations with state appropriations.

Annual Grapevine Data show initial 10.2% increase in state support for higher education

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Data reported by states in the latest Grapevine survey indicate that initially approved state support for higher education in fiscal year (FY) 2024 reached $126.5 billion, a 10.2% increase over 2023.[1] This is the third year state fiscal support for all higher education has topped $100 billion. This increase reflects a 36.5% increase over the past five years. Tax appropriations, non-tax support, non-appropriated support, and returns from state funded endowments make up total state support. The Grapevine report provides a first, tentative look at state higher education funding in the new fiscal year. However, an important caveat is that the Grapevine data do not account for inflation.[2]

Although states allocated 50.5% less federal funding to support higher education than in FY 2023, an additional $801.3 million in federal stimulus funding brings the total state fiscal support for higher education in FY 2024 to $127.3 billion.[3]  Since 2020, states allocated just under $10 billion in federal stimulus to higher education.

Grapevine data are collected annually by the State Higher Education Executive Officers Association (SHEEO). The FY 2024 data represent initial allocations and estimates reported by the states from October 2023 through January 2024 and are subject to change. 

Both including and excluding federal stimulus dollars, 19 states saw increases of at least 10% since 2023. Including federal stimulus, 10 states saw increases greater than 15%. Eight states saw increases greater than 15% without federal stimulus. 

Nine states and Washington, D.C., reported an overall decline in state support, including federal stimulus funding, between 2023 and 2024. Four states and Washington, D.C., had one-year declines excluding federal stimulus. Excluding federal stimulus funding, only two states (Alaska and Wyoming) had lower state support in 2024 than in 2019.

The Grapevine tables include data on how total higher education state support allocations were used across two-year public operating, four-year public operating, state financial aid, research, and other uses for FY 2024. While state allocations across each area are not final and include estimates for several states, initial appropriations to each area were as follows: 

  • $27.3 billion to two-year public operating.
  • $59.8 billion to four-year public operating.
  • $16.4 billion to state financial aid for all students. 
  • $16.8 billion to research, agriculture extension, hospital extension and medical schools.
  • $6.1 billion to other uses, including agency funding, private institution operations, and non-credit appropriations. 

The full Grapevine report, including tables summarizing the results of the FY 2024 Grapevine survey and a complete dataset of state support for higher education going back to 1980, can be found on the SHEEO State Higher Education Finance (SHEF) website at https://shef.sheeo.org/grapevine.

[1] FY 2024 marks the eighth year Grapevine has included Washington, D.C., in its survey. Washington, D.C., is excluded from all state counts and U.S. totals. The data reported by the District of Columbia, including federal stimulus funding, reveal an 8.9% decline in the last year and an 8.5% decrease in the last two years, but a five-year increase of 25.6%.

[2] While actual inflation data are not available for FY 2024, forecasts suggest the U.S. will face 2.8% inflation over FY 2024. Source: OECD Economic Outlook: Statistics and Projections, Inflation Forecast Indicator https://data.oecd.org/price/inflation-forecast.htm.

[3] Federal stimulus funding was awarded to states for higher education to stabilize state and local sources of funding, and to provide additional resources during COVID-19. Federal stimulus funding excludes funds allocated to public capital projects and any funds (such as HEERF) allocated directly by the federal government to institutions or students.

Annual Grapevine Compilation Shows Initial 6.6% Increase in State Support for Higher Education

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Data reported by states in the latest Grapevine survey indicate that initially approved state support for higher education in fiscal year (FY) 2023 reached $112.3 billion, a 6.6% increase over 2022.[1] This is the second time that state fiscal support for all higher education has topped $100 billion. This increase reflects a 27.5% increase over the past five years. Tax appropriations, non-tax support, non-appropriated support, and returns from state funded endowments make up total state support. The Grapevine report provides a first, tentative look at state higher education funding in the new fiscal year. An important caveat is that the Grapevine data do not account for inflation.[2]

Although states allocated less federal funding to support higher education than in the previous two years, an additional $1.2 billion in federal stimulus funding brings the total state fiscal support for higher education in FY 2023 to $113.5 billion, a 5.3% increase over 2022.[3]  

Grapevine data are collected annually by the State Higher Education Executive Officers Association (SHEEO) in collaboration with the Center for the Study of Education Policy at Illinois State University. The FY 2023 data summarized online and in these tables represent initial allocations and estimates reported by the states from October 2022 through January 2023 and are subject to change. 

From 2022 to 2023, 14 states reported increases of more than 10% in state support for higher education, excluding federal stimulus funding. The states reporting these large increases are Alaska, Arizona, Georgia, Hawaii, Kentucky, Maryland, Mississippi, Missouri, New Mexico, South Carolina, Tennessee, Utah, Vermont, and Virginia. Five states, and Washington, D.C., had decreases in state support, excluding federal stimulus funding: Connecticut, Illinois,[4] Michigan, New Hampshire, and Texas.

Thirty-eight states saw overall increases in state and federal stimulus funding. Twelve states and Washington, D.C., reported an overall decline in state and federal stimulus funding between 2022 and 2023. The 12 states reporting declines are: Connecticut, Delaware, Georgia, Illinois, Michigan, Minnesota, New Hampshire, North Dakota, Texas, Vermont, West Virginia, and Wisconsin. The decreases are caused by reductions in a combination of both federal stimulus and state support in most of the 12 states. However, Delaware, Georgia, Vermont, West Virginia, and Wisconsin saw increases in state support which were reversed by significant reductions in federal stimulus funding.

The Grapevine tables also include data on how total higher education state support allocations were used across two-year public operating, four-year public operating, state financial aid, research, and other uses for FY 2023. While state allocations across each area are not final and include estimates for several states, initial appropriations to each area were as follows:

  • $24 billion to two-year public operating (22.1% of state support).
  • $56 billion to four-year public operating (49.9%). 
  • $14.8 billion to state financial aid for all students (13.2%). 
  • $12.8 billion to research, agriculture extension, hospital extension and medical schools (11.4%).
  • $3.8 billion to other uses, including agency funding, private institution operations, and non-credit appropriations (3.4%). 

Longer-Term Trends

Longer-term trends in state support for higher education are positive. Excluding federal stimulus funding, state support has increased 16.4% nationally since 2021 and 27.5% since 2018. Note: These data do not account for the impact of inflation, which has risen substantially in recent years.[5]

Only two states, again excluding any federal stimulus funding, had lower state support in 2023 than in 2021 (Connecticut and Wyoming). Likewise, only two states had lower state support in 2023 than in 2018 (Alaska and Wyoming). While multiple-year declines in any state should be of concern, these state counts are relatively low compared to pre-pandemic years.

Federal Stimulus Funding

For the second year in a row, the Grapevine report includes tables on federal stimulus/relief allocations to states that were used for higher education. Funds awarded directly to higher education institutions from the federal government are not included. 

Across FY 2020-2023, states allocated $8.8 billion in federal stimulus support to higher education from the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, the 2021 Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, and the 2021 American Rescue Plan (ARP). If including funds used for capital projects, that number jumps to $10.9 billion in federal stimulus support over the last four years. The full Grapevine report, including tables summarizing the results of the FY 2023 Grapevine survey and a complete dataset of state support for higher education going back to 1980, can be found on the SHEEO State Higher Education Finance (SHEF) website at https://shef.sheeo.org/grapevine.

[1] FY 2023 marks the seventh year Grapevine has included Washington, D.C., in its survey. Washington, D.C., is excluded from all state counts and U.S. totals. The data reported by the District of Columbia, including federal stimulus funding, reveal a 6.2% decline in the last year and a 19.7% decrease in the last two years, but a five-year increase of 42.5%.

[2] While actual inflation data are not available for FY 2023, forecasts suggest the U.S. will face 3.8% inflation over FY 2022. Source: OECD Economic Outlook: Statistics and Projections, Inflation Forecast Indicator https://data.oecd.org/price/inflation-forecast.htm.

[3] Federal stimulus funding was awarded to states for higher education to stabilize state and local sources of funding, and to provide additional resources during COVID-19. Federal stimulus funding excludes funds allocated to public capital projects and any funds (such as HEERF) allocated directly by the federal government to institutions or students.

[4] In Illinois, FY 2022 includes a one-time payment of $250 million to fully address the unfunded liability of the state’s prepaid tuition program, ensuring stability to the program. If this one-time payment were not included, the one-year change in Illinois’ state support would be a $236.1 million increase, or 4.6%.

[5] From December 2021 to December 2022, the Consumer Price Index increased 6.5%. Source: U.S. Bureau of Labor Statistics Economic News Release, Consumer Price Index Summary https://www.bls.gov/news.release/cpi.nr0.htm.