State and local appropriations increased to $130.7 billion for public higher education in fiscal 2025, but per-student support declined for the first time since 2012 after enrollment growth outpaced funding. State Higher Education Executive Officers Association (SHEEO) reports inflation-adjusted per-student state and local spending fell 1% to $12,082. SHEEO also found net tuition and fee revenue per full-time equivalent student declined 3.5% to $7,459, reflecting expanded state financial aid alongside tuition increases that lagged inflation. Enrollment rose 3.6% to about 10.8 million students, diluting support per student. For institutional budgeting, the risk is near-term volatility even as headline funding totals rise. Leaders face pressure to balance staffing, program costs, and deferred capital needs without assuming steady state-per-student growth. The report also highlights variation across states, with 24 states still spending less than pre-pandemic levels, underscoring uneven affordability commitments and differential capacity to absorb cost pressure.