Moody’s issued a negative outlook for U.S. higher education finances heading into fiscal 2026, citing enrollment declines, rising costs and policy shifts under the Trump administration that could squeeze margins further. Analysts singled out changes to federal student‑loan and graduate‑loan programs, research funding uncertainty, and demographic headwinds as principal drivers of deteriorating credit profiles. A new Pew analysis shows at least 15 states have proposed or enacted cuts to public university funding this year, producing immediate operational impacts: delayed capital projects, hiring freezes, tuition pressure and maintenance backlogs. The University System of Maryland’s 7% budget reduction and multi‑state examples illustrate the breadth of the pullback. Moody’s warned institutions with heavy graduate and master’s portfolios are especially exposed to loan caps and Grad PLUS reductions. Trustees and CFOs now face simultaneous shocks: lower state support, federal policy volatility and a projected fall in the population of high‑school graduates, complicating short‑term liquidity and multi‑year planning.