State and local support for public colleges and universities rose to $130.7 billion in fiscal 2025, but per-student funding fell 1% in inflation-adjusted terms for the first time since 2012, according to the annual State Higher Education Finance report from SHEEO. Enrollment grew faster than appropriations: full-time equivalent enrollment increased 3.6% to 10.8 million students while funding did not keep pace. The report puts inflation-adjusted per-student public support at $12,082 for fiscal 2025, down from $12,205 the year prior. Rob Anderson, president of SHEEO, said the first per-student reduction in more than a decade signals increased volatility even as overall public funding remained strong and enrollment continued to recover from pandemic lows. The new data also highlights continued variation across states: 24 states still spend less on higher education than they did before the Great Recession. Louisiana, Nevada, and New Hampshire spent the least per student in fiscal 2025, while Delaware, Illinois, and Michigan spent the most; Illinois’s higher level reflects efforts tied to its historically underfunded state retirement pension system. The bottom line for campus leaders: even with topline appropriations rising, tighter per-student support can amplify financial pressure on aid, staffing, and program planning—particularly for institutions facing enrollment shifts.