Examining the Impact of Performance-Based Funding Policy Designs on College Completion by Field of Study

Amid rising concerns about the return on investment (ROI) of postsecondary education, an increasing number of states have adopted performance-based funding (PBF) metrics that focus on students’ economic success and completion in high-demand fields, such as science, technology, engineering, and mathematics (STEM) and health. States have also increased the share of state funding tied to PBF. In this study, we examine the effects of various PBF policy designs on student completion across different postsecondary credential types and academic fields. Our findings indicate that PBF policies did not have a significant impact on completion for certificates, associate degrees, or bachelor’s degrees across fields of study. These results remained consistent across institution types and students’ racial/ethnic background.