The designation does not immediately affect funding. But if either institution's score declines again next year, state rules would require the university to submit a formal student success improvement plan to the Board of Governors in order to receive its full share of performance funding.
The state's performance-based funding system, established in 2014, evaluates Florida's 12 public universities using 10 metrics tied to graduation rates, employment outcomes, wages, academic progress and access for low-income students. Institutions can earn up to 100 points.
For the 2025-26 fiscal year, only Florida Atlantic University had been placed on the watch list. FAU improved its score this year and was removed from enhanced monitoring.
FAMU's decline was driven largely by a drop in its four-year graduation rate for full-time, first-time-in-college students, one of the system's most closely watched benchmarks.
Under Metric 4, FAMU received just three points in 2026, a steep fall from the 10 points it earned on the same measure a year earlier. The decrease erased gains the university posted in several other categories.
At the same time, the university showed improvement in outcomes for low-income students. Under Metric 9b — the six-year graduation rate for students who received Pell Grants during their first year — FAMU earned five points in 2026 after receiving no points on the measure in 2025.
The mixed results underscore both the progress and challenges facing the university as it seeks to maintain its upward trajectory amid heightened scrutiny from state officials.
Under Board of Governors policy, if a university's score declines for two consecutive years if may still receive up to 100 percent of their state performance funding allocation, but only after presenting a student success plan to the board.
If the board approves the plan, the university may receive up to half of its performance funding allocation in August. The remainder may be released six months later, typically in March, provided the institution demonstrates progress toward the goals outlined in the plan. Neither, FAMU nor NCF are at that point yet of having to submit an improvement plan, as this is only a one year decline.
The Florida Board of Governors is expected to discuss the full performance based funding metrics and make 2026 funding allocations at its upcoming board meeting in Boca Raton, FL, this week.