Education Minister Givi Mikanadze told Parliament that Georgia is working with the World Bank on a new legal framework that will define the rules and conditions for state funding of higher education. According to him, starting from the 2026–2027 academic year, the current grant-based system will be abolished for students enrolled in public universities, as the country transitions to a fully state-funded model covering both institutions and students.
The minister said the reform introduces a diversified funding scheme based on the number of students and the real cost of academic programs. Funding will vary depending on the field of study and level of education (bachelor’s, master’s), with each program’s cost calculated per student. This approach, he noted, is aligned with international practices and is intended to ensure more efficient allocation of resources.
Mikanadze added that the model was developed with technical support from the World Bank and in consultation with a wide range of stakeholders, including public and private universities, parliamentary committees, employers’ associations, and international experts from countries such as the United States, Ireland, Canada, Germany, and others. Comparative studies of universities like the University of Washington and the University of Michigan were also used in shaping the methodology.
The reform also introduces performance-based funding components tied to key indicators such as education quality, labor market relevance, research output, internationalization, and regional development. The minister said this will be implemented gradually, allowing universities to transition smoothly while maintaining institutional stability. He also noted that the 2027 budget allocation for higher education is projected at around 700 million GEL, based on student enrollment figures and the new funding framework.
