Today, the United Negro College Fund released its 2024 HBCU Economic Impact Report titled “Transforming Futures: The Economic Engines of HBCUs.” The report, commissioned by UNCF’s Frederick D. Patterson Research Institute, offers a comprehensive analysis of the significant contributions made by the nation’s 101 historically Black colleges and universities to students, local communities, and the broader economy.
HBCUs have long served as vital educational and economic pillars within their communities, generating substantial prosperity. However, the report highlights a troubling trend: chronic underfunding jeopardizes these institutions’ ongoing effectiveness and reach. The study emphasizes the urgent need for equitable and sustainable funding to ensure that HBCUs can continue their critical role in fostering social mobility and stimulating economic growth.
“This report reaffirms what we have always known about the resilience of HBCUs: despite a deadly pandemic, social unrest caused by the murders of George Floyd and Breonna Taylor, and the economic uncertainties of the past seven years, HBCUs continue to do more with less—not only in preparing the next generation of leaders but also in contributing to our nation’s economic impact,” said Dr. Michael L. Lomax, president and CEO, UNCF. “At this critical moment, with a crucial election on the horizon, we all must immediately actualize our commitment to these cornerstone institutions.”
Breaking Down the Report
Key findings from the report reveal that HBCUs generate a staggering $16.5 billion in direct economic impact nationwide. If considered a corporation, HBCUs would rank among the top 50 companies nationwide for job creation, supporting approximately 136,048 jobs. Moreover, the report illustrates that for every job created on campus, an average of 1.5 off-campus jobs also emerge due to related spending.
The report further notes that HBCUs provide increased accessibility to higher education for underrepresented students, successfully moving many from the bottom 40% of the income distribution to the top 60%. Graduates from HBCUs in the class of 2021 are projected to achieve work-life earnings of $146 billion—57% more than they would have earned without their degrees or certificates.
This year’s report continues the landmark 2017 study, HBCUs Make America Strong: The Positive Economic Impact of Historically Black Colleges and Universities. The study established the extensive economic benefits of HBCUs beyond their immediate student populations. A website launched alongside the report allows users to explore state-specific data and insights into individual HBCUs, highlighting their localized impact.
Lodriguez Murray, senior vice president of public policy and government affairs at UNCF, emphasized the importance of the report as both a wake-up call and a demand for action. “Now more than ever, we must recognize the indispensable role HBCUs play in shaping not just the future of their students but the future of our nation,” Murray stated. “We urge every supporter to make their voices heard, to advocate for the equitable funding our HBCUs deserve, and to ensure that these institutions can continue to thrive and contribute to America’s future.”
Taking Action
In response to the findings, UNCF plans to ramp up voter mobilization efforts ahead of the upcoming elections. The organization will leverage the report to raise awareness about the essential role of HBCUs and inspire voters to support policies that reinforce HBCU infrastructure, safety, and student life.
