Moody’s Ratings issued a negative outlook for U.S. higher education for fiscal 2026, citing enrollment pressures, rising expenses and political headwinds under the Trump administration. The ratings agency warned that federal policy shifts, shrinking cohorts of high‑school graduates and changes to graduate lending (including Grad PLUS phase‑out and new borrowing caps) will squeeze margins—particularly at institutions with large master’s offerings that rely on graduate borrowing. Complementary analysis from Pew and other outlets shows at least 15 states proposed or enacted cuts to higher‑education funding this year, triggering tuition increases, hiring freezes and deferred maintenance across public systems. Moody’s and state budget data together signal an operating environment in which institutions must reweight enrollment strategies, contingency reserves and program portfolios to manage liquidity and sustain core missions.