Per-student state support for public higher education declined for the first time since 2012, even as enrollment recovered in fiscal 2025. The State Higher Education Executive Officers Association (SHEEO) reported that inflation-adjusted state and local appropriations rose to $130.7 billion, but FTE enrollment increased faster, pushing per-student funding down 1% to $12,082. SHEEO attributed the gap to enrollment growth outpacing appropriation growth: public net FTE enrollment increased by 3.6% to about 10.8 million students while per-student appropriations fell. The report also noted net tuition and fee revenue per FTE declined 3.5% in 2025, linked to expanded state financial aid and tuition increases that lagged inflation. The volatility shows up unevenly across states, with per-FTE net tuition revenue ranging from $2,288 in Nevada to $20,707 in Delaware. While state public financial aid per FTE reached a record $1,271 in 2025, the distribution varied widely, shaping affordability and access outcomes. For campus leaders and boards, the shift raises near-term budgeting risk: institutions that planned using stable per-student appropriation assumptions may need to revisit revenue models, staffing, and investment timelines.