At the 2026 Association for Education Finance and Policy (AEFP) Annual Conference, Ithaka S+R’s Elizabeth Pisacreta will present a study that examines how states use outcomes-based funding and targeted financial aid to shape postsecondary pathways and respond to workforce needs amid increasing federal constraints. Using national data on higher education finance, state aid programs, and labor markets, the analysis documents substantial variation in state strategies and shows that few states are targeting substantial resources towards high demand, high-wage industries, and when they do, those investments often reflect a mix of economic and social policy priorities rather than a singular focus on labor market returns.

Ongoing case studies will explore how states make these tradeoffs and assess the effectiveness of different funding approaches, with the goal of informing more intentional and well-aligned higher education funding portfolios.

The session will take place on Friday, March 20, at 1:00-2:30pm.