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America’s educational system must prepare Americans to grow into responsible adult citizens ready to face the challenges of an increasingly complex, dynamic, entrepreneurial world.

Our public institutions should be bastions of free thought and speech, fueling a fiercely competitive marketplace of ideas. With correctly aligned incentives, they can provide opportunity for everyone to succeed, especially the least well-off; unleashing previously untapped potential and building a more prosperous future for all.

By harnessing the innovation of bottom-up competition, the best ideas in American public higher education can emerge and win.

Our Solution:

HIGHER EDUCATION FUNDING: Even with states spending more on higher education than they do on hospitals, highways, and roads combined, graduation rates remain strikingly low and the financial return from a college degree continues to fall. By allocating public higher education funding based on the value colleges provide their students—namely how much they increase students’ earnings after they leave school—and aligning colleges’ incentives with students’ success, states will make higher education a better, more equitable investment.

Check Out: The History of Performance Funding in State Higher Education

Higher Education Funding Resources

Featured Research

Returned-Value Funding at Texas State Technical College

Returned-Value Funding at Texas State Technical College

Texas State Technical College, with 10 locations throughout the state, earns funding from…