Virginia’s Private Colleges and Universities Seek Additional Funding Amid Federal Cuts

Virginia’s private institutions are lobbying to increase state funding for the Tuition Assistance Grant program as the governor prepares his final budget, to be presented in December. This week, the institutions cited their contributions to the state’s economic successes and growing workforce as reasons for the commonwealth to, in turn, make a bigger investment in higher education amid federal uncertainty.

Christopher Peace, president of the Council of Independent Colleges in Virginia, listens to a presentation from economic analyst Fletcher Mangum speaking at a press conference on Oct. 20, 2025. (Photo by Nathaniel Cline/Virginia Mercury)

The purpose of the grant program is to provide financial assistance to Virginia residents who are attending accredited private, nonprofit colleges and universities for purposes other than religious training or theological education.

Christopher Peace, president of the Council of Independent Colleges in Virginia (CICV), which represents 28 private colleges and universities, said at a Monday press conference that graduates from private colleges in the commonwealth have made the case for additional monies for the grant program, generating $4.6 billion in annual economic output and employing nearly 30,000 Virginians.

“Families are now facing less access to federal loans, smaller grants and greater uncertainty, especially middle-income and lower-income Virginians and first-generation college families,” Peace said. “That’s why the Virginia Tuition Assistance Grant has never been more important. TAG is a steady, bipartisan commitment to ensuring access to college in Virginia, and it doesn’t depend on Washington’s next budget cycle.”

Over the past three years, lawmakers increased state appropriations for the program by raising the maximum amount each student would receive to $5,250 per student. In total, Virginia appropriates $112 million to the initiative.

(State Council of Higher Education for Virginia)

Last year, lawmakers pushed back the application deadline from July 31 to Sept. 15, giving institutions more time to identify eligible students. A report by the State Council of Higher Education in Virginia said the program saw a 5.4% increase for undergraduate residential students since the deadline adjustment.

CICV also announced the findings from the second phase of its statewide economic impact analysis conducted by Mangum Economics on Monday. The report focuses on the human capital, or the knowledge, talent, leadership and problem-solving skills that graduates have contributed to the commonwealth’s workforce and communities.

During the academic year 2023-2024, CIVC’s institutions conferred 39,871 degrees and awards to 5,356 health profession graduates and 5,205 education graduates. The largest field of graduates was in the field of business, with 6,919.

Mangum estimated that the enhanced productivity and lifetime earnings of graduates are estimated to add $161.6 million annually to Virginia’s economy.

Peace said there’s always room for growth to meet the workforce demand, including in the area of health care. He added that CICV has 15 private nursing colleges in Virginia that produce almost 40% of all nursing degree graduates.

“We know that there’s a critical nurse shortage, and if we don’t have nurses moving in and attaining master’s level, we will have a future greater shortage in those who can educate nurses,” Peace said. “We have a pipeline issue now that we’re meeting a demand for, but you’re going to have a greater problem in the future based on some of the actions at the federal government, and hopefully we can prevent some of that with state investment.”

Del. Betsy Carr, D-Richmond, chair of the House Appropriations Subcommittee on Higher Education, said with the federal funding cuts to higher education — which include ending Grad PLUS loans, capping Parent PLUS, and tightening Pell eligibility, ultimately reducing the resources available to students — TAG is the “most effective tool” to fill that gap for Virginia students.

“TAG keeps college within reach for more than 20,000 in-state students every year, and ensures that the commonwealth continues to produce the talent our economy needs,” Carr said. “Every dollar invested through TAG returns dividends and skilled graduates who teach, innovate, and lead across Virginia. It is an investment, not just in education, but in economic security and community vitality.”

Del. Betsy Carr, D-Richmond, speaking at a press conference on Oct. 20, 2025. (Photo by Nathaniel Cline/Virginia Mercury)

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