AS MASSACHUSETTS BRACES for the potential loss of approximately $16 billion in federal funding—a substantial portion of the state’s budget—the impact could ripple across vital sectors from health care and infrastructure to social services and education. Among these sectors, higher education and workforce development stand particularly vulnerable.
Historically, higher education funding often suffers during state budget shortfalls, as immediate demands from other areas take precedence. Adding to these pressures, federal efforts to weaken or even dismantle the Department of Education cast further uncertainty on the future of critical student need-based aid programs, subsidized loans, and income-driven repayment plans, potentially disrupting recent gains in college enrollment and completion rates.
Despite these looming threats, Massachusetts finds itself uniquely positioned to shield higher education from devastating budgetary cuts. Thanks to the Fair Share “millionaires tax,” the Commonwealth now generates an additional $2.4 billion annually, constitutionally dedicated to public education and transportation. With thoughtful and fair allocation of these new revenues, Massachusetts can protect higher education, ensuring that vital investments in our workforce and economy continue uninterrupted.
The stakes are high: The state’s innovation-driven economy—anchored in health care, technology, life sciences, and research—relies heavily on a skilled and educated workforce. Each year, over 95,000 Massachusetts students depend on federal financial aid, collectively receiving approximately $410 million in Pell Grants, $77 million from Supplemental Educational Opportunity Grant (SEOG) and Work-Study programs, and $375 million in subsidized loans.
Collectively, students annually borrow over $2 billion to pursue essential technical training, trade certifications, and academic degrees. If this support falters, declining enrollments could severely impact Massachusetts colleges and universities, undermining the very institutions that fuel the state’s economic success. The majority of these need-based aid recipients attend public institutions, reinforcing the urgent role of the state in ensuring continued access to affordable higher education.
But this is not just about preventing a crisis. Investing in public higher education is an opportunity for growth.
Over the last decade, soaring college costs and growing skepticism about the value of higher education have deterred students from pursuing degrees essential to our economy. This doubt persists despite overwhelming evidence that higher education drives prosperity for individuals and their communities.
A recent study in Kentucky found that every dollar invested in higher education yields four and a half times that in tax revenue and nearly 17 times more in local economic impact. For Massachusetts, known globally for its leadership in health care, biotechnology, technology, and research, these investments promise even greater returns.
While Massachusetts is fortunate to have additional resources from the Fair Share amendment, the concern is that current allocations significantly undervalue higher education. Just about 10 percent ($337 million) of these new revenues in the governor’s supplemental and FY26 budgets are directed to higher education, while nearly half a billion dollars are diverted to childcare services.
Though childcare deserves robust public funding, it clearly falls outside the constitutional scope intended for public education, inadvertently limiting funds available for our public colleges and universities. Even more troubling is the stagnation or reduction in the state’s baseline budget for scholarships and grants, substituting new Fair Share revenue for existing allocations rather than increasing overall investment.
We must act urgently to reverse this trend. Massachusetts is still recovering from decades of chronic underinvestment in higher education. According to conservative estimates, students currently face financial aid gaps ranging from $11,000 to $14,000 annually, resulting in deeper debt, excessive workloads, or withdrawal from college—problems that are likely to worsen under federal funding uncertainties.
Even before these risks emerged, the Board of Higher Education recommended directing up to one-third of Fair Share revenues toward public colleges and universities—an investment now more essential than ever. Allocating between 25 percent and 33 percent of these funds to higher education is not only fiscally responsible; it is strategically crucial for Massachusetts’s long-term economic resilience.
Now is the moment to safeguard our future. If Massachusetts intends to remain a leader in innovation, uphold equitable access to higher education, and sustain long-term prosperity, we must dedicate a substantial portion of Fair Share revenues to supporting public colleges and universities.
The stakes are indeed high—but the potential rewards, a thriving Commonwealth powered by a well-educated and empowered workforce, are far greater.
Bahar Akman Imboden is managing director of the Hildreth Institute, a Boston-based nonprofit research and policy center dedicated to advancing student-centered, evidence-based strategies for expanding access, success, and degree value in higher education.
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