Economic and workforce development, college affordability, top policy priorities for 2026 

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State higher education leaders across the country are balancing a wide array of policy priorities and concerns going into 2026. The State Higher Education Executive Officers Association (SHEEO) asked its members to identify their top policy issues for the new year in a survey distributed to chief executive officers in November 2025. States face a multitude of higher education policy issues, with some topics consistently among the top priorities each year, while others represent emerging public policy concerns driven by the current higher education landscape. SHEEO’s report details the top 10 state policy priorities for 2026, with two additional issues noted as honorary mentions.

Economic and workforce development rose to the top priority, moving from number two in 2025. Ninety-seven percent of respondents identified economic and workforce development as important or very important. As the number one state higher education policy issue on average for four years, its status reinforces the longstanding value of workforce alignment between higher education and career readiness. Among the opportunities for states to address economic and workforce development this year is the expansion of Pell Grant eligibility to short-term job training programs through Workforce Pell. In addition, states have been taking action to implement a range of initiatives to address future labor market demands, including introducing key legislation to help higher education agencies work more closely with state workforce agencies, prioritizing financial aid to support high-need programs, exploring standardizing microcredentials, and aligning academic planning with state workforce needs.

College affordability jumped up to the second-most important policy issue, from sixth-most important last year. States have long served as a primary role in ensuring affordable postsecondary opportunities through the provision of operating support that enables public institutions to charge lower tuition rates, and through targeted financial aid programs. Both sources of support have remained steady or increased in recent years, resulting in lower net costs of attendance for students. 

Rounding out the top five priorities for higher education leaders are (3) higher education’s value proposition (return on investment), (4) state operating support for public colleges and universities, and (5) college completion and student success. All top five issues ranked within the top 10 in 2025. Other issues in the top 10 include (6) state impacts from federal policy changes, (7) state funding for financial aid programs, (8) retaining college graduates (“brain drain”), (9) student transfer pathways, and (10) dual enrollment, early college, and/or other K-12 connections. Honorable mentions include public perception of higher education, and the effective use of state data/data systems. 

“2026 holds a lot of unknowns as we look to see what state legislators will prioritize and how changes at the federal level will impact states,” said Tom Harnisch, SHEEO’s Vice President for Government Relations. “Economic and workforce development continues to be top of mind – and with the implementation of Workforce Pell rolling out later this year, we’re optimistic that states will continue to make advances in addressing workforce needs.”

This year, SHEEO added four new policy issues – state impacts from federal policy changes; and dual enrollment, early college, and/or other K-12 connections – both of which ranked in the top 10 – and proactive, guaranteed, and/or direct admissions; and academic program planning and/or review – which ranked 19th and 20th, respectively. Four issues were dropped for the 2026 survey – artificial intelligence; effects of inflation on costs of goods and services; faculty supply, salaries, and/or quality; and academic freedom. The full State Priorities for Higher Education in 2026 report can be found at https://bit.ly/Policy-Issue-Survey26.

State operating support for public colleges and universities tops policy priorities for state higher education leaders in 2025

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State higher education leaders across the country are going into 2025 with several top policy priorities and concerns. The State Higher Education Executive Officers Association (SHEEO) asked its members to identify their top policy issues for the new year in a survey distributed to chief executive officers after the November 2024 election. States face a multitude of higher education policy issues, with some topics consistently among the top priorities for policymakers, while others represent emerging public policy concerns driven by the current higher education landscape. SHEEO’s report details the top 11 state policy priorities for 2025 (due to a tie for 10th), with two additional emerging issues noted as honorary mentions.

State operating support for public colleges and universities rose to the top priority for higher education in 2025, emerging from number two last year, and number four in 2023. Historically, state operating support has been the primary source of revenue public colleges and universities have used to educate students. This has shifted over time, with more institutions now relying on tuition dollars. As states focus on college affordability, state operating support to institutions is critical to help avoid tuition increases and counterbalance inflationary pressures in operating costs. Although state support for operating budgets increased in most states since the beginning of the COVID-19 pandemic, state budgets and spending are expected to shrink in fiscal year 2025. Budget shortfalls tend to result in cuts to state support for higher education and, in turn, increases in tuition and fees for students, which some states are already experiencing.

While just missing out as the top policy priority for the third year in a row, 94 percent of SHEEOs still indicated that economic and workforce development is an important or very important issue, making it the second top policy priority for SHEEOs. SHEEO agencies are implementing a wide range of initiatives to meet future labor market demands. Many of these efforts focus on identifying high-demand occupations and providing incentives for students and institutions.

Rounding out the top five priorities for higher education leaders are (3) state funding for financial aid programs, (4) higher education’s value proposition, and (5) college completion and student success. All top five issues ranked within the top 10 in 2024. Other issues in the top 10 include (6) college affordability, (7) enrollment declines, (8) public perception of higher education, (9) FAFSA completion, and with a tie (10) adult/non-traditional student success, and (10) student transfer pathways. Honorable mentions include K-12 teacher workforce, and the use of state data to inform decision-making. 

“While this report isn’t an exhaustive list of issues our states are facing, it foreshadows policy priorities in the 2025 state legislative sessions,” said Tom Harnisch, SHEEO’s Vice President for Government Relations. “With some states already having to make tough budget decisions, I think we’ll continue to see headlines around operating support, state funding for financial aid programs, and the conversation around college affordability and the value proposition.”

This year, SHEEO added three policy issues—student transfer pathways, cost containment, and artificial intelligence—and dropped two issues—academic tenure and DEI curriculum and programming. The survey also combined student health, safety, and basic needs (food, housing, childcare, etc.) due to similar concepts that have ranked comparably in prior years. Student transfer pathways was the only new issue to poll in the top 10, while cost containment and artificial intelligence ranked 18th and 19th.

The full State Priorities for Higher Education in 2025 report can be found at https://bit.ly/state-priorities-2025.