Recent and anticipated federal actions will have a significant impact on higher education in New York. As noted by the Office of the New York State Comptroller in its 2024 report, Higher Education in New York, New York has long benefited from an outstanding network of colleges and universities that serve as anchors for our communities by employing tens of thousands of people, conducting world-class research and development, attracting new residents, training the workforce and bringing vibrancy to neighborhoods. Recent upticks in enrollments and federal funds that directly and indirectly boost institutions of higher education (IHEs) are threatened by federal action on student aid, international student enrollment and support for research, among other areas. Impacts from recently enacted federal law, upcoming budget appropriations for federal fiscal year 2026 and Executive action put at risk the competitiveness that New York is working to maintain in this sector and the social and economic benefits it generates.
Federal Actions
Termination and Freezing of Funds
Federal Executive action beginning in January 2025 resulted in the termination or pause of a range of federal support including grants, contracts and other types of assistance,1 including the cancelling of over 1,800 grants by the National Institutes of Health (NIH) through June 2025. Accompanying this action, the Department of Health and Human Services directed its agencies to stop publishing grant review meeting notices. The General Accounting Office (GAO) has reported that NIH complied with this direction and that there was a decrease in the number of new grants NIH awarded and in its obligations and expenditures during this time.2 Legal action has resulted in an August 2025 Supreme Court decision to pause lower court action restoring a portion of the grants but stopping short of blocking the order that deemed NIH action illegal.3
The Executive has pursued other actions affecting IHEs’ resources,4 including civil rights investigations and agreements with financial penalties.5 This has created uncertainty and instability at universities and colleges in New York and elsewhere.
Federal Reconciliation Bill
Provisions in the federal reconciliation bill, signed into law as Public Law (P.L.) No: 119-21, enacted on July 4, 2025, 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. While some changes related to loan repayment (including under the Public Service Loan Forgiveness program) and delays in implementation of regulations on borrower defense and closed school loan discharge became effective immediately,6 most provisions will become effective as of the 2026-27 academic year. The U.S. Department of Education is also developing a schedule for implementing limitations on loans for part-time students and will seek public input on this item later in 2025.
Major higher education provisions of P.L. 119-21:
- Eliminated the Graduate PLUS loan program (interest-subsidized loans) as of July 1, 2026 (2026-27 academic year).
- Limited unsubsidized loan amounts for graduate and professional students, including lifetime aggregate borrowing, and loans to parents of undergraduate students as of July 1, 2026. Existing borrowers are exempt from new caps for three years.
- Limited loans on a pro-rated basis for less-than-full-time students.
- Limited loan repayment plans for loans issued after July 1, 2026 to two options: Repayment Assistance Plan and the income-based Repayment Assistance Plan.
- Capped forbearance on new loans to 9 months in any 24-month period as of July 1, 2027.
- Revised Pell Grant eligibility to exclude students with other federal and non-federal awards that equal or exceed the full cost of attendance as of July 1, 2026.
- Provided for undergraduate and graduate programs to lose federal loan eligibility when graduates’ earnings for two out of three years are below those for a median high school graduate in their state (undergraduate programs) or below those for a median bachelor’s degree holder in the same field from their state (graduate programs) as of July 1, 2026.7
- Replaced the 1.4 percent excise tax on net investment income of certain institutions of higher education endowments with a tiered rate structure depending on the value of the endowment and number of tuition-paying students among other factors that determine an institution’s student-adjusted endowment.8
Student-Adjusted Endowment | Excise Tax Rate |
|---|---|
$500,000 - $750,000 | 1.4 percent |
>$750,000 - $2,000,000 | 4 percent |
>$2,000,000 | 8 percent |
Source: Public Law No: 119-21 (section 70415. Modification of Excise Tax on Investment Income of Certain Private Colleges and Universities).
International Student Enrollments
A range of presidential 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 U.S. Department of State (State Department) direction in May 2025 temporarily pausing new interviews of student visa applicants in preparation for review of their social media accounts. On June 18, the State Department announced it would provide guidance and resume appointment scheduling for this purpose.9 Additionally in June, the President signed a proclamation to fully or partially restrict the entry of nationals from 19 countries, including Iran,10 also likely affecting international student applications to IHEs.
In August 2025, the State Department stated that over 6,000 international student visas had been revoked in 2025 because students had overstayed or broken laws, including 4,000 violations primarily for burglary, driving while under the influence, assault and alleged support for terrorism, with 200 to 300 revoked due to claims of terrorism.11
FFY 2026 Budget Appropriations
Final House and Senate action on federal fiscal year (FFY) 2026 budget appropriations also will affect sources of assistance and funding for postsecondary students, institutions and research activity. The President’s request for FFY 2026 appropriations includes reductions of approximately 40 percent, or almost $18 billion, to NIH funding in FFY 2025, along with a cap of 15 percent on facilities and administrative costs. There is also a proposed 56 percent reduction, more than $5 billion, to funding for the National Science Foundation.12
The President’s FFY 2026 budget request also proposes to decrease both maximum Pell Grant awards and the federal government’s funding for and share of Work-Study support, along with eliminating the Supplemental Educational Opportunity Grant (SEOG) program. The budget request would include a new Pell Grant workforce component for short-term programs.13 Finally, the President’s request would eliminate funding for the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) that provided $4.3 million in the State’s current enacted budget.
Federal Aid
Loans
In New York, 262,146 undergraduate students and 84,234 graduate students received federal loans in 2022-23,14 35.1 and 33.2 percent of degree- and certificate-seeking undergraduate and all graduate enrollments, respectively.15 There were $2.5 billion awarded to undergraduate students and $2.9 billion to graduate students, for a total of almost $5.5 billion. Most awarded funds helped students afford tuition at private institutions, while SUNY students represented most of the recipients and awarded funds at public IHEs.16
Figure 1 – Federal Loan Recipients and Funds Awarded: New York, 2022-23
| Undergraduate Number of Recipients | Undergraduate Amount of Funds Awarded | Graduate/First-Professional Number of Recipients | Graduate/First-Professional Amount of Funds Awarded |
|---|---|---|---|---|
| Total | 262,146 | $2,547,393,871 | 84,234 | $2,908,535,390 |
| Private IHEs | 146,869 (56.0%) | $1,714,309,511 (67.3%) | 60,069 (71.3%) | $2,371,390,503 (81.5%) |
| Public IHEs | 115,277 (44.0%) | $833,084,360 (32.7%) | 24,165 (28.7%) | $537,144,887 (18.5%) |
| CUNY | 17,191 (14.9%) | $101,907,280 (12.2%) | 9,250 (38.3%) | $144,143,631 (26.8%) |
| SUNY | 98,086 (85.1%) | $731,177,080 (87.8%) | 14,915 (61.7%) | $393,001,256 (73.2%) |
Source: New York State Education Department, Higher Education Reports, Student Financial Aid, 2015-2023 Student Financial Aid Data.
Grants
In 2021-22, 56 percent of first-time, full-time undergraduate students nationwide received federal grants. This proportion was about 70 percent or more for students in two-year degree programs regardless of sector.17
Almost 308,000 undergraduates in New York received federal Pell Grants in 2022-23; of these, about one-third were students at private IHEs and just over two-thirds studied at public sector institutions.18 The almost 210,000 recipients of Pell Grants in the public sector represented over 48 percent of all SUNY and CUNY degree- and certificate-seeking undergraduate enrollments with nearly 98,000 recipients representing 31.5 percent of such undergraduate enrollments at private IHEs.19
Over 110,000 students received SEOGs, with two-thirds for undergraduates at private IHEs.20 Like Pell Grants, SEOGs are for exceptional financial need and are generally available only to undergraduates.21 Finally, over 47,000 undergraduates received federal Work-Study, of which almost 37,000 were enrolled at private sector colleges and universities.22
Figure 2 – Federal Grant Recipients and Funds Awarded: Undergraduates in New York, 2022-23
Recipients | Funds Awarded | |||
|---|---|---|---|---|
Number | Share | Amount | Share | |
| Pell Grants | ||||
| Total | 307,881 |
| $1,495,437,526 |
|
| Private IHEs | 97,960 | 31.8% | $491,620,740 | 32.9% |
| Public IHEs | 209,921 | 68.2% | $1,003,816,786 | 67.1% |
| SEOGs | ||||
| Total | 110,103 |
| $92,737,837 |
|
| Private IHEs | 42,395 | 38.5% | $61,277,401 | 66.1% |
| Public IHEs | 67,708 | 61.5% | $31,460,436 | 33.9% |
| Work-Study | ||||
| Total | 47,356 |
| $107,013,133 |
|
| Private IHEs | 36,997 | 78.1% | $82,179,402 | 76.8% |
| Public IHEs | 10,359 | 21.9% | $24,833,731 | 23.2% |
Source: New York State Education Department, Higher Education Reports, Student Financial Aid, 2015-2023 Student Financial Aid Data.
International Students
In academic year 2023-24, more than 1.1 million international students were enrolled at IHEs in the United States, 5.9 percent of the projected 18.9 million total enrollment that year. This includes 135,813 international students in New York, a 7.1 percent increase from the prior year and 2nd among the states, D.C. and certain territories. Open Doors reports these students spent more than $6.2 billion from payment of tuition and total living expenses.23 There were 22 IHEs in New York out of a total 238 nationwide hosting 1,000 or more international students; eleven of these were in New York City. These students typically pay full charges for tuition and other costs; as such their payments are an important source of revenue for universities and colleges and support these institutions’ efforts to provide financial aid to qualifying New York resident students.
FIGURE 3 – Institutions in New York Hosting 1,000 or More International Students, 2023-24
| Location | Total International Students | |
|---|---|---|
| New York University | New York | 27,247 |
| Columbia University | New York | 20,321 |
| Cornell University | Ithaca | 9,091 |
| SUNY University at Buffalo | Buffalo | 8,380 |
| Syracuse University | Syracuse | 5,703 |
| University of Rochester | Rochester | 4,892 |
| The New School | New York | 4,785 |
| SUNY Stony Brook University | Stony Brook | 4,311 |
| Pace University - New York | New York | 3,851 |
| Rochester Institute of Technology | Rochester | 2,826 |
| School of Visual Arts | New York | 2,784 |
| SUNY Binghamton University | Binghamton | 2,668 |
| Fordham University | Bronx | 2,410 |
| Pratt Institute | Brooklyn | 2,406 |
| SUNY University at Albany | Albany | 1,916 |
| CUNY Baruch College | New York | 1,843 |
| Teachers College, Columbia University | New York | 1,812 |
| Monroe College | New Rochelle | 1,744 |
| New York Institute of Technology | Old Westbury | 1,480 |
| Rensselaer Polytechnic Institute | Troy | 1,290 |
| CUNY Graduate School and University Center | New York | 1,230 |
| SUNY Fashion Institute of Technology | New York | 1,163 |
Source: Open Doors (International Students/Data Download/Download International Students Data Release/Complete Data Set), Open_Doors_2024_Census_Tables.xlsx, Table 17, Institutions Hosting 1,000 or More International Students, 2023/24.
The highest numbers of international students are doctoral degree enrollments at major institutions. Most IHEs with a comparatively high number of international students are in the New York City metropolitan area.
International Students at SUNY
SUNY reports that 5.7 percent of its total Fall 2024 enrollment, representing 21,436 students, were international students. This was an increase of 1,118 from the prior year and almost 4,000 from Fall 2020. It comprised 8.8 percent of total enrollment at state-operated institutions and 1.7 percent at community colleges. International student enrollment at state-operated IHEs made up 14.5 percent of total enrollment at doctoral institutions, 2.3 percent at comprehensive colleges and 2.0 percent at technology colleges that year. The majority of these students came from India (6,585), China (3,977), South Korea (1,134), Singapore (1,045) and Canada (955).24
Research and Development
Research and development (R&D) by universities and colleges can transform funding into discoveries and value-added innovations that can attract investment as well as students and faculty by creating communities of scholarship and practice. It supports work by a range of personnel at these institutions: researchers, R&D technicians, and R&D support staff. It also helps the higher education sector to maintain relevancy in emerging industries and supports economic and social activity on the local, regional and state levels.
Total research and development expenditures from all sources at institutions of higher education in New York have increased from $5.65 billion in 2014 to $9.1 billion in 2023, with New York ranked 2nd consistently behind California. In 2023, there were R&D expenditures of more than $25 million at 27 institutions in New York out of 86 entities in the State reporting such expenditures. New York University, Cornell University and Columbia University each received between $1.3 and $1.5 billion in 2023.25
In 2023, this funding supported work by almost 72,400 individual personnel (headcount) in New York: 16,530 at public sector institutions and about 55,870 at private IHEs, or about 6,880 and 39,780 full-time equivalent (FTE) students, respectively. In the public sector, this represented a headcount of about 12,260 at SUNY (6,090 FTEs) and 4,270 at CUNY (about 790 FTEs).26
Total federally financed R&D expenditures at New York IHEs have increased from $2.75 billion in 2014 to $4.3 billion in 2023, an increase of 57.5 percent. In 2023, there were federally financed R&D expenditures of more than $25 million at 19 institutions in New York out of 67 entities in the State reporting such expenditures. Columbia University, New York University and Cornell University each received between $700 million and almost $1 billion from these sources and ranked among the top 25 schools nationwide.27
Figure 4 – Total R&D Expenditures over $25 million at IHEs: New York, 2023
(in thousands)
| Institution | National Rank | Amount |
|---|---|---|
| New York U. | 12 | $1,457,424 |
| Cornell U. | 13 | $1,451,971 |
| Columbia U. in the City of New York | 19 | $1,341,952 |
| Icahn School of Medicine at Mount Sinai | 34 | $972,476 |
| U. Rochester | 70 | $481,227 |
| State U. New York, The, U. at Buffalo | 72 | $471,569 |
| Rockefeller U., The | 82 | $385,168 |
| Albert Einstein C. Medicine | 95 | $336,238 |
| Stony Brook U. | 99 | $324,531 |
| State U. New York Polytechnic Institute | 110 | $284,677 |
| Syracuse U. | 143 | $183,850 |
| SUNY, Binghamton U. | 158 | $141,685 |
| State U. New York, The, Albany | 159 | $141,671 |
| Rensselaer Polytechnic Institute | 168 | $121,706 |
| Cold Spring Harbor Laboratory | 170 | $117,483 |
| Touro C. and U. System | 176 | $100,547 |
| Rochester Institute of Technology | 196 | $72,405 |
| CUNY, City C. | 206 | $63,159 |
| CUNY, Graduate Center | 221 | $54,089 |
| State U. New York, Upstate Medical U. | 224 | $53,219 |
| CUNY, Hunter C. | 247 | $37,172 |
| SUNY, Downstate Health Sciences U. | 250 | $35,600 |
| Teachers C., Columbia U. | 252 | $34,183 |
| State U. New York C. Environmental Science and Forestry | 257 | $32,682 |
| CUNY, Graduate School of Public Health and Health Policy | 273 | $26,651 |
| CUNY, Queens C. | 279 | $25,492 |
| Clarkson U. | 280 | $25,399 |
| Other | $297,491 | |
| Total | $9,071,717 |
Note: Abbreviations from source data. National rank is out of 914 institutions in 2023 (1,045 institutions were surveyed this year and there were no expenditures at 131 of these IHEs). For methodology, see HERD Survey, 2023 Survey Description.
Source: National Science Foundation, National Center for Science and Engineering Statistics, Higher Education Research and Development (HERD): Fiscal Year 2023, November 2024 (Table 21).
Figure 5 –Total Federally Financed R&D Expenditures Over $25 million at IHEs: New York, 2023
(in thousands)
| Institution | National Rank | Amount |
|---|---|---|
| Columbia U. in the City of New York | 6 | $988,670 |
| New York U. | 16 | $787,204 |
| Cornell U. | 21 | $705,132 |
| U. Rochester | 52 | $368,190 |
| SUNY, U. Buffalo | 70 | $257,857 |
| Albert Einstein C. of Medicine | 75 | $230,151 |
| SUNY, Stony Brook U. | 91 | $192,448 |
| Rockefeller U. | 131 | $101,422 |
| SUNY, U. Albany | 160 | $62,935 |
| Rensselaer Polytechnic Institute | 167 | $56,445 |
| Cold Spring Harbor Laboratory | 170 | $54,123 |
| Syracuse U. | 178 | $46,595 |
| Touro U., New York | 185 | $40,008 |
| CUNY, City C. | 190 | $38,669 |
| Rochester Institute of Technology | 193 | $37,334 |
| SUNY, Polytechnic Institute | 199 | $34,393 |
| SUNY, Binghamton U. | 206 | $31,601 |
| SUNY, Upstate Medical U. | 213 | $30,069 |
| SUNY, Downstate Health Sciences U. | 220 | $28,543 |
| Other | $215,262 | |
| Total | $4,307,051 |
Note: Abbreviations from source data. National rank is out of 660 ranked institutions in 2023 (other institutions were surveyed this year that reported $0 federal expenditures). For methodology, see HERD Survey, 2023 Survey Description.
Source: National Science Foundation, National Center for Science and Engineering Statistics, Higher Education Research and Development (HERD): Fiscal Year 2023, November 2024 (Table 24).
In 2024, New York ranked second for funding that entities in the states and the District of Columbia received from the NIH, $3.55 billion out of a total $36.9 billion. Columbia University Health Sciences ($639.1 million), New York University School of Medicine ($490.2 million) and Icahn School of Medicine at Mount Sinai ($489.9 million) were major recipients of this funding.28 United for Medical Research notes this funding supported over 30,500 jobs and $8.27 billion in economic activity in the State.29
Conclusion
Recent federal actions threaten New York’s expansive higher education sector’s ability to attract and cultivate talent and conduct the cutting-edge research and development that help spur innovation and economic growth. Limitations to aid and loans, particularly in graduate study, may make 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. Additionally, an increased tax on certain endowments could place additional strain on IHEs. In an environment which has become increasingly competitive for both students and research dollars, and has already seen several institutions in the State close, federal actions may hinder the State’s ability to attract talent and pose financial challenges for many of the State’s colleges and universities. Such outcomes may hinder the State’s ability to maintain its competitive advantage in the higher education sector.
Endnotes
1 White House, Executive Order 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing, January 20, 2025; Executive Office of the President, Memorandum for Heads of Executive Departments and Agencies, Subject: Temporary Pause of Agency Grant, Loan and Other Financial Assistance Programs, January 27, 2025.
2 U.S. Government Accounting Office, Department of Health and Human Services—National Institutes of Health—Application of Impoundment Control Act to Availability of Funds for Grants, August 05, 2025.
3 Supreme Court of the United States, No. 25A103, August 21, 2025; Higher Ed Dive, Dive Brief: ‘Wrongly and deeply disappointing’: Supreme Court halts order restoring NIH grants, August 22, 2025.
4 Appropriations Committee/Democrats, Trump’s Unprecedented Funding Freeze Hits Communities Across America.
5 U.S. Department of Justice, Office of Public Affairs, Federal Task Force to Combat Antisemitism Announces Visits to 10 College Campuses that Experienced Incidents of Antisemitism, February 28, 2025; U.S. Department of Education, Office for Civil Rights Initiates Title VI Investigations into Institutions of Higher Education, March 14, 2025; and White House, Fact Sheet: President Donald J. Trump Secures Major Settlement with Columbia University, July 24, 2025.
6 Public Law No: 119-21, One Big Beautiful Bill Act and U.S. Department of Education, Office of Federal Student Aid, (GEN-25-04) Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act (Dear Colleague Letter), July 18, 2025.
7 Public Law No: 119-21, One Big Beautiful Bill Act.
8 Recent data is not available to ascertain the impact of this provision in New York State.
9 U.S. Department of State, Department Press Briefing – May 29, 2025, May 29, 2025; Media Note: Announcement of Expanded Screening and Vetting for Visa Applicants, June 18, 2025.
10 White House, Fact Sheet: President Donald J. Trump Restricts the Entry of Foreign Nationals to Protect the United States from Foreign Terrorists and Other National Security and Public Safety Threats, June 4, 2025.
11 Fox News, Rubio’s State Department yanks more than 6K student visas due to assault, burglary, support for terrorism, August 18, 2025 (reported the “State Department told Fox News Digital”); Higher Ed Dive, Dive Brief, State Department has revoked over 6,000 student visas this year, August 19, 2025; The Hill, 6,000 student visas revoked: State Department, August 19, 2025. Fox News reported that “Altogether, the State Department told Fox News Digital that approximately 40,000 visas have been pulled in 2025, in comparison to the 16,000 that were revoked during the same time frame under the Biden administration.”
12 Executive Office of the President, Office of Management and Budget, Fiscal Year 2026 Discretionary Budget Request, May 2, 2025.
13 U.S. Department of Education, Fiscal Year 2026 Budget Summary.
14 New York State Education Department, Higher Education Reports, Student Financial Aid, 2015-2023 Student Financial Aid Data.
15 New York State Education Department, Higher Education Reports, Fall Degree-Credit Enrollment and 2015-2023 Student Financial Aid Data. New York State Education Department higher education enrollment numbers vary from those provided by SUNY and CUNY due to differences in inclusions and exclusions.
16 New York State Education Department, Higher Education Reports, Student Financial Aid, 2015-2023 Student Financial Aid Data.
17 U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Student Financial Aid component, Table 331.20. First-time, full-time degree/certificate-seeking undergraduate students enrolled in degree-granting postsecondary institutions, by participation and average amount awarded in financial aid programs, and control and level of institution: Academic years 2000-01 through 2021-22, November 2023.
18 New York State Education Department, Higher Education Reports, Student Financial Aid, 2015-2023 Student Financial Aid Data.
19 New York State Education Department, Higher Education Reports, Fall Degree-Credit Enrollment and 2015-2023 Student Financial Aid Data. New York State Education Department higher education enrollment numbers vary from those provided by SUNY and CUNY due to differences in inclusions and exclusions.
20 New York State Education Department, Higher Education Reports, Student Financial Aid, 2015-2023 Student Financial Aid Data.
21 U.S. Department of Education, Office of Federal Student Aid, Federal Pell Grants, and Notification of Campus-Based Funding for the 2023-24 Award Year.
22 New York State Education Department, Higher Education Reports, Student Financial Aid, 2015-2023 Student Financial Aid Data.
23 Open Doors, see International Students/Data Download, and, U.S. State Facts Sheets (State Facts and Figures 2024). Open Doors notes the economic impact results from analysis by NAFSA: Association of International Educators with use of Open Doors enrollment data; Jason L. Baumgartner (NAFSA), The Economic Value of International Student Enrollment to the U.S. Economy, November, 2024; and, NAFSA International Student Economic Value Tool (NAFSA and JB International).
24 State University of New York, System Administration Office of Institutional Research, 2023-24 SUNY Institutional Research Fact Book, September 19, 2024.
25 The national total of R&D all expenditures this year was $108.8 billion. National Science Foundation, National Center for Science and Engineering Statistics, Higher Education Research and Development: Fiscal Year 2023, November 2024 (Key Data Tables, Tables 21 and 67).
26 National Science Foundation, National Center for Science and Engineering Statistics, Higher Education Research and Development (HERD) Survey, 2023, November 2024 (see Key Data Tables, Table 79).
27 A total of $59.6 billion in funding was spent nationally for these purposes in 2023. National Science Foundation, National Center for Science and Engineering Statistics, Higher Education Research and Development (HERD) Survey, 2023, November 2024 (see Key Data Tables, Table 24).
28 U.S. Department of Health & Human Services, Funding, NIH Awards by Location & Organization, Data frozen as of 10/04/2024. Data released on 01/10/2025.
29 United for Medical Research, NIH In Your State: New York.