“…Each component of the public higher education system, from flagship research universities to regional comprehensive universities to community and technical colleges, serves the mission of economic development in its own way (Beach, 2012; Fryar, 2014; Liu, 2015). States also provide direct subsidies to students in the form of financial aid to help students with financial need, keep high-achieving students in the state (Winters, 2020), and allow student choice across various public and private institutions (Laderman, 2019). This section discusses literature on state funding for public institutions and financial aid, focusing on the effects on student outcomes and implications for equity.…”