SHEEO’s analysis of FY 2025 highlights how rapidly changing student demand can dilute per-FTE state support, even as enrollment rebounds. State and local government funding for public higher education totaled $149.2 billion in fiscal year 2025, up 3.4% in inflation-adjusted terms, but per-FTE funding declined 1% to $12,082. The report pairs enrollment growth—net FTE rose 3.6% to about 10.8 million—with shifts in the revenue mix. Net tuition and fee revenue per FTE fell 3.5% to $7,459, driven largely by expanded state financial aid and slower-than-inflation tuition increases. Institutional budgeting will likely stay volatile given the uneven impacts across states, where net tuition revenue per FTE ranged from $2,288 in Nevada to $20,707 in Delaware, complicating long-term planning for affordability, staffing, and financial aid strategy.