Amidst the second Trump administration, the higher education sector faces turmoil due to proposed cuts to federal funding, research grants, Pell Grants, and student loans. Economic uncertainty has further intensified, leading to comparisons with the 2008 Great Recession. While previous economic downturns had a clear impact on public higher education funding, the current situation highlights a unique context marked by erratic policies that may not yield similar effects. The struggle for institutions to recover funding levels post-recession exacerbates challenges, particularly for students reliant on loans and grants.
Since the 1980s, economic downturns have increasingly impacted public higher education, primarily due to state budget cuts.
The U.S. economy contracted slightly in the first quarter of 2025, with the administration's erratic and unpredictable policies amplifying recession risks.
Economic uncertainty stemming from inconsistent tariff policies has left businesses and consumers grappling with unpredictability.
More than a decade after the Great Recession, public institutions were struggling to regain the level of state funding they once received.
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