Financing promise programs: Where the money comes from and where the money goes

Abstract

Free college/promise programs provide scholarships that cover students’ tuition and fees to attend college. These programs are flexible in that they can be adapted to local and/or state needs when crafting the design, scope, and benefits offered to students. Based on their adaptability, there is variation in the funding of these programs due to the available financial resources and programs’ ability to leverage established community and state partnerships. This chapter discusses how local and state promise programs are funded, what their funding covers, and how these programs affect postsecondary institutions’ finances. Also described are how promise programs have adapted to changing financial circumstances, especially during the COVID‐19 pandemic. Finally, the chapter provides recommendations for their financial sustainability.