New State Higher Education Finance reporting shows per-student state and local funding for public colleges declined for the first time since 2012. In fiscal 2025, state and local government funding totaled $130.7 billion, rising 2.6% when adjusted for inflation, but enrollment growth outpaced appropriations. Per full-time equivalent (FTE) enrollment increased 3.6% to about 10.8 million students, while inflation-adjusted per-student support fell 1% to $12,082. The report also notes widening volatility: net tuition and fee revenue per FTE declined and state aid increased, reshaping the funding mix. With 24 states still spending less per student than before the Great Recession, the combination of affordability-driven state aid and weakening per-student appropriations is likely to constrain budgets and complicate multi-year planning at public institutions.