Recent federal budget decisions, upcoming appropriations for fiscal year 2026, and executive actions since January 2025 are likely to have a major effect on higher education in New York, according to an analysis by 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. commented on the findings: “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 FĂ©lix V. Matos RodrĂguez expressed concern: “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.”
Lola W. Brabham, President of the Commission on Independent Colleges and Universities (CICU), stated: “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.”
The report notes that recent executive actions have led to pauses or cancellations in various types of federal support such as grants and contracts affecting research activities at New York’s higher education institutions. For example, over 1,800 grants from the National Institutes of Health were canceled through June 2025; only some have been restored following court intervention. In 2023 alone, research expenditures by New York’s colleges totaled $9.1 billion from all sources—a figure second only to California.
A law enacted in July (Public Law No: 119-21) is expected to reduce students’ access to grants and loans starting with the 2026-27 academic year. This change will affect many post-secondary students who rely on federal loans—including graduate students facing more limited options.
During the 2023-24 academic year there were over 135,000 international students enrolled in New York—making it second nationwide—and several institutions hosted large numbers from abroad. Executive actions have included pausing new visa interviews pending social media review and restricting entry from certain countries; these steps could discourage future applications or enrollment by international students who pay full tuition rates.
DiNapoli emphasized that limits on aid or loans could make advanced study unaffordable for some New Yorkers—a concern given that most college costs in the state remain above national averages except at four-year public schools. Any decrease in international enrollment may also strain institutional budgets since those students’ payments help offset costs for local residents.
More information can be found in DiNapoli’s full report on Federal Impact on Higher Education, as well as related reports such as Higher Education in New York, Economic Impact of Higher Education, and an Online Resource on Federal Funding.
