Statement on Conference Committee Budget for Student Financial Aid And Student Support Services
Last Friday afternoon, lawmakers concluded a $58 billion plan for fiscal year 2025, which Governor Healey has 10 days to finalize upon receipt. The budget includes significant provisions for higher education marking a historic step toward a more accessible system in the Commonwealth.
In total, the budget allocated $215 million from the Education and Transportation Fund towards state student financial aid programs, a $68 million increase from FY 2024. Combined with existing programs, state student financial aid now totals approximately $400 million, reflecting a 17% increase from 2024 after accounting for inflation (see detailed table below).
$93 million has been allocated to MassEducate, a new initiative that expands on last year's program, MassReconnect, now broadening its reach to all students at community colleges regardless of age and income. The inclusion of an extra stipend for low-income students, who often face cost barriers beyond tuition and fees is welcome news. This initiative promises to boost enrollment at community colleges, which has seen a steady decline since 2018.
The budget also includes $14.7 million for the SUCCESS program, providing essential wrap-around services for at-risk students at community colleges and an additional $14 million to extend these services to state universities.
Despite these gains, concerns remain around the emphasis on enrollment alone without enough focus on ensuring that those who enroll can successfully persist and graduate. These concerns can be allayed by addressing three critical areas and by ensuring they receive adequate funding.Given the Millionaire's surtax, which is anticipated to exceed $2 billion, the state has the opportunity and resources needed to address these concerns and further strengthen our higher education system, ensuring all students have the opportunity to succeed:
Financial Aid for Lowest-Income Students: There is still insufficient financial aid targeted at the lowest-income students, who will continue to struggle with financial barriers that prevent them from enrolling, persisting, and graduating. Refer to our Policy Insight on distributional impact here
Wrap-Around Services at Community Colleges: As MassEducate is anticipated to increase enrollment at community colleges, maintaining the SUCCESS program funding at the same level as last year risks stretching the capacity to provide essential wrap-around services needed to support these students effectively.
Instructional Capacity: Lessons from other states and the first year of MassReconnect show that increased enrollment stretches instructional capacity. More funding is needed to expand instructional capacity to ensure all students receive a high-quality education.
Despite these concerns, we welcome the investment in higher education including the creation of a new $2.5 million persistence and basic needs program, which will support students' costs of attendance beyond tuition and fees, addressing some of the unanticipated expenses that could jeopardize their academic success and persistence. Studying the short and long term outcomes will be invaluable to inform future policy considerations.
Additionally, the $80 million that was allocated for the MassGrant Plus expansion is commendable, but more needs to be done to publicize this generous yet less widely recognized program that offers Pell-eligible students free tuition, fees, books, and supplies at state universities and UMass campuses, ensuring students are given choice to any public higher education institution in Massachusetts.
We appreciate the legislature’s commitment to higher education and the significant strides made in this budget to support students across the Commonwealth. While this budget represents a historic investment, we must continue to enhance financial aid, wrap-around services, and instructional capacity to ensure students not only enroll but also succeed. We look forward to collaborating with lawmakers and community partners to build on this progress and create a more equitable higher education system in Massachusetts.
Thank you.
Bahar Akman-Imboden
Managing Director
