How Do U.S. Universities Make Money? 🎓

Key Takeaways

• Over half of American public college and university revenue came from government sources in 2023.
• The federal government contributed $68.9 billion, equal to 18% of total revenue.
• In April, the Trump administration froze over $10 billion in federal funding to elite universities including Harvard, Northwestern, and Cornell.

Tuition and Fees Make Up Only 21% of Revenue

Even as tuition costs have tripled since 1990, they do not make up the largest share of public university funding.

Instead, state government funding, typically in the form of research grants, contracts, and appropriations, makes up the largest share at 28%.

Private sources equaled 13% of total revenue, with endowment funding often tied to specific purposes such as scholarships or a designated research center.