U.S. colleges and universities are more vulnerable than international peers to financial hardships caused by coronavirus-related shutdowns, says a new report.
Though schools across the globe are expected to see lower enrollment and lost income from ongoing campus closures, U.S. institutions will likely experience more stress due to their reliance on state funding, endowment investments and international students, according to a new report by Moody’s Investors Service, a bond ratings agency. 
Moody’s is forecasting a 2% contraction in U.S. GDP in 2020, which means states’ revenue will likely take a significant hit in the near future. When it comes to appropriations, states may have to prioritize other priorities, such as healthcare, before education.
As a consequence, public universities in the U.S. will be particularly vulnerable, as they will likely see funding from states dip. “State funding cuts represent an immediate risk for some U.S. universities,” says Moody’s.
In fact, some states are already moving in that direction.
New Jersey, for instance, on March 23 announced a budget freeze of $900 million, which includes university funding. Likewise, Missouri has frozen $180 million in planned spending, restricting $61.3 million from four-year higher education institutions and $11.6 million from community colleges.
Some state schools are bracing for predicted funding cuts.
