DiNapoli: Recent Federal Actions Will Have Significant Impact on Higher Education in NY

Impacts from the recently enacted federal budget law, upcoming appropriations for federal fiscal year 2026 and executive actions since January 2025 risk undermining the strength and competitiveness of New York's higher education sector and the social and economic benefits it generates, according to a new analysis from State Comptroller Thomas P. DiNapoli.

"New York has long benefited from outstanding institutions of higher education that serve as anchors for our communities, employing tens of thousands of people, conducting world-class research and development, attracting new residents, training the workforce and bringing vibrancy to neighborhoods," DiNapoli said. "Federal action on student aid, international student enrollment, and support for research threatens the ability of these institutions to serve as employers and innovators. It also impacts the ability of students to afford tuition. These threats pose financial challenges to the institutions and economic challenges to communities."

SUNY Chancellor John B. King Jr. said, "There is a place at SUNY for every New Yorker, and we are proud of SUNY's role delivering affordable excellence, serving as an engine of upward mobility, and conducting ground-breaking research that saves lives and makes our nation more secure. This report underscores the importance of the federal government's historic partnership with America's higher education institutions as a driver of progress."

CUNY Chancellor Félix V. Matos Rodríguez said, "CUNY remains deeply concerned about the potential impact of federal actions that are outlined in State Comptroller Thomas DiNapoli's comprehensive report. Despite these challenges, we are working to support everyone in our community and are grateful to our government partners across New York for supporting and advocating for universities like CUNY during this period of uncertainty."

President, Commission on Independent Colleges and Universities (CICU), Lola W. Brabham said, "New York's private, not-for-profit colleges and universities are proud partners in advancing educational opportunity, innovation, and workforce development statewide. Recent analyses show that federal changes to student loan availability will limit access for thousands of New Yorkers, particularly first-generation and non-traditional students. Independent sector campuses collectively provide more than $8 billion each year in additional student aid, helping to keep higher education accessible and affordable. We appreciate State Comptroller DiNapoli's leadership in underscoring this critical issue that threatens thousands of students with restricted access, higher debt burdens and limited educational choices-hampering both individual opportunity and the state's long-term competitiveness."

Federal executive action has resulted in the termination or pause of a range of federal support including grants, contracts and other types of assistance, affecting research activity at institutions of higher education (IHE) in New York and elsewhere. One example is the cancelling of over 1,800 grants by the National Institutes of Health (NIH) through June 2025. Recent court action has restored only a portion of these grants. Total research and development expenditures by New York IHEs in 2023 were $9.1 billion, second only to California.

Provisions in Public Law No: 119-21, enacted in July, will impact college affordability and choice for many students by reducing students' access to grants, amounts and types of loans, options for loan repayment and potentially, programs of study. Most provisions will become effective as of the 2026-27 academic year, impacting the thousands of New York post-secondary students that take out and pay back federal loans, including graduate students for whom loan options will become more limited.

International Students

In academic year 2023-24, there were 135,813 international students in New York, second in the nation. There were 22 IHEs in New York out of a total 238 nationwide hosting 1,000 or more international students, 11 of these in New York City. SUNY reports that 5.7% of its total Fall 2024 enrollment was composed of international students, 21,436 total, an increase of 1,118 from the prior year and almost 4,000 from Fall 2020.

A range of executive actions have affected international student enrollment in New York and across the country, and may be poised to have a chilling effect on future applications and enrollment. This includes temporarily pausing new interviews of student visa applicants for review of their social media accounts and restricting the entry of nationals from 19 countries. International students pay full tuition and other costs; as such, their payments are an important source of revenue for universities and colleges.

DiNapoli said limitations to aid and loans, particularly in graduate study, may make the pursuit of higher education unaffordable to some, which is especially concerning since higher education costs in the state, apart from tuition at four-year public IHEs, are higher than the nationwide average. This challenge will be compounded by potential declines in international students whose full tuition payments act to subsidize charges paid by New York residents.

Report
Federal Impact on Higher Education

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Higher Education in New York
Economic Impact of Higher Education
Federal Funding and New York - Online Resource