State and local funding for public higher education rose overall in fiscal 2025, but per-student support fell for the first time since 2012, according to SHEEO’s annual State Higher Education Finance report. Funding totaled $130.7 billion, up 2.6% in inflation-adjusted terms, while full-time equivalent enrollment increased 3.6% to 10.8 million. After adjusting for inflation, per-student state and local appropriations declined by 1% to $12,082, down from $12,205 the prior year. The report also found net revenue per FTE fell 1.9% to $19,443, signaling that tuition and aid changes are not fully offsetting slower appropriation growth. SHEEO president Rob Anderson said the reduction after a decade-plus of increases points to heightened volatility for state budgeting—an issue likely to intensify institutional planning and staffing decisions in coming budget cycles.