Re-imagining Outcomes-based Funding: Using Metrics to Foster Higher Education Equity

More than 30 states have adopted outcomes-based or performance-based funding (OBF) models that allocate some funds based, in part, on the number or proportion of learners who earn a postsecondary degree. This report from Education Trust analyzes how well existing state OBF policies address equity concerns by prioritizing the enrollment and success of learners of color and learners from low-income backgrounds. The report also makes recommendations for postsecondary leaders to design and implement OBF policies that better advance equity.

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April 2021