(WNY News Now) – State Comptroller Thomas P. DiNapoli warns that recent federal actions could significantly weaken New York’s higher education system, threatening affordability, research funding, and the state’s long-term economic competitiveness.
ALBANY, N.Y. — New York State Comptroller Thomas P. DiNapoli released an analysis highlighting the potential negative effects of recent federal budget laws, appropriations for fiscal year 2026, and executive actions taken since January 2025. The report warns that these measures could undermine the financial strength, innovation, and accessibility of higher education institutions across New York.
“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.
The report outlines multiple areas of concern, including cuts to student aid and research funding, restrictions on international student enrollment, and reduced access to federal loans. These changes, DiNapoli said, pose both financial challenges for colleges and universities and economic challenges for surrounding communities that depend on them.
SUNY Chancellor John B. King Jr. underscored the value of federal partnership, saying, “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 Félix V. Matos Rodríguez expressed similar concerns, stating that the university system remains “deeply concerned about the potential impact of federal actions,” but remains committed to supporting students and staff during this period of uncertainty.
Lola W. Brabham, President of the Commission on Independent Colleges and Universities (CICU), said the changes could limit access to higher education for thousands of New Yorkers. “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.” Brabham said, noting that private, not-for-profit campuses collectively provide over $8 billion in student aid annually.
Federal actions have already disrupted research funding, with the National Institutes of Health (NIH) canceling more than 1,800 grants nationwide through June 2025—only a portion of which have since been restored by court order. New York institutions spent $9.1 billion on research and development in 2023, ranking second in the nation behind California.
Additionally, Public Law No. 119-21, enacted in July, will take effect in the 2026–27 academic year, reducing student access to grants and loans while tightening repayment options. The law will impact thousands of New York students, including graduate students who rely heavily on federal loans.
The report also highlights the vulnerability of international student enrollment, a key revenue source for many institutions. In the 2023–24 academic year, New York hosted 135,813 international students—the second-highest number in the nation. However, new federal policies, including paused visa interviews and entry restrictions for nationals from 19 countries, may deter future enrollment.
DiNapoli cautioned that reduced aid, higher loan burdens, and lower international enrollment could make higher education increasingly unaffordable, especially in a state where tuition and related costs already exceed national averages. “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.”
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