State and local funding per full-time equivalent student declined in fiscal 2025 for the first time since 2012, according to SHEEO’s annual State Higher Education Finance report. While total inflation-adjusted appropriations rose to $130.7 billion, enrollment grew faster—pushing per-student support down to $12,082 from $12,205. SHEEO reports that net tuition and fees also faced pressure as net tuition revenue per FTE fell, even as aid expanded. The report attributes the mismatch to enrollment rebound outpacing appropriation growth and tuition increases lagging inflation. The drop signals a shift from a long period of gradual gains in public support, with wide variation across states. Even with overall spending at a record level, 24 states still provided less per-student support than they did before the Great Recession. The development raises immediate budgeting challenges for campus leaders using per-student assumptions tied to state appropriations and enrollment growth projections. CFOs and provosts will need to adjust forecasting for more volatility in both state funding and net tuition revenue per FTE.