In an era of growing skepticism about the value of higher education, new reports from universities and state associations make a clear case: colleges and universities are not only educating students, but also fueling local and regional economies at a scale that rivals major industries.
Omaha’s $2.4 Billion Alumni Impact
A recent study from the University of Nebraska at Omaha (UNO) highlights how alumni contribute to economic vitality long after graduation. According to the report, UNO degree-holders residing in the Omaha metro area generated an estimated $2.44 billion in total economic impact in 2024. That figure includes $1.44 billion in direct local spending and a ripple effect that supported 12,459 jobs across the region.
The study, prepared by UNO economics professor Christopher Decker, PhD, shows that degree attainment translates into higher earnings and spending power for graduates, which in turn stimulates local businesses. For every dollar in direct additional spending by UNO alumni, 70 cents more was created through indirect and induced effects.
Tax revenues were another major benefit. UNO alumni in Omaha paid an estimated $990 million in state income, payroll, property, and sales taxes in 2024. That revenue helps fund public services and infrastructure across Nebraska.
Local leaders say the findings underscore the role of higher education in combating “brain drain”—the migration of college graduates to other locations, a challenge faced by many midwestern communities. “Brain drain is a major problem for Nebraska. Yet, many, if not most, UNO graduates are bucking this trend,” Decker noted in the report. “They choose to stay once they earn their degree. They invest their talents, energy, and resources in the Omaha community, becoming business and civic leaders.”
Omaha Mayor John Ewing, a UNO graduate, emphasized the civic dimensions of this retention. As a proud graduate of UNO and the mayor of this great city, I see the impact of our alumni every day in our businesses, in our classrooms, and in our neighborhoods. This report confirms what we’ve known for a long time: the strength of Omaha is the strength of its people.
Fairfield University and Connecticut’s Independent Colleges
A similar story is playing out in Connecticut, where private institutions are proving their broader economic worth. A 2025 report from the Connecticut Conference of Independent Colleges (CCIC) found that the state’s 14 nonprofit independent colleges and universities together generated $19.3 billion annually for the state’s economy, supporting more than 148,000 jobs.
Fairfield University alone contributed more than $1.2 billion in economic impact in fiscal year 2023, according to the report. That figure included $744 million in direct spending and more than 9,000 jobs. Beyond payrolls and student spending, Fairfield has been an anchor for local businesses, cultural events, and civic engagement.
At Fairfield University, we are deeply committed to being a force for good in our local community,” says Jennifer Anderson, vice president of marketing and communications. “We recognize our responsibility to enrich the area we call home—through service, culture, education, and economic collaboration.
The statewide report found that Connecticut’s independent colleges are the largest private-sector employers in many of their host communities. Collectively, they award $1.48 billion in financial aid annually and have more than 235,000 alumni living in the state who generate $22.1 billion in earnings.
Mark R. Nemec, PhD, Fairfield’s president and chair of the CCIC Board of Directors, framed the findings in terms of both mission and impact: Connecticut’s independent colleges and universities are well known for preparing students for meaningful lives, successful careers and active citizenship. But their impact goes even further—these institutions significantly contribute to local and regional economies through student and visitor spending, major construction projects, the earnings of tens of thousands of faculty and staff who live and work in communities across the state, and direct spending on services and supplies.
Expanding Opportunity Through Development
Universities are increasingly leveraging real estate and development projects as engines of economic growth. Chicago State University, for example, recently announced University Village 95, a mixed-use housing and retail development along the city’s 95th Street Corridor. The initiative is designed to address housing shortages for students while simultaneously revitalizing the surrounding community, linking higher education directly with neighborhood investment.
The project, which will deliver more than 500 student beds and 25,000 square feet of retail space in its initial phase, builds on Chicago State’s broader economic footprint. The institution already generates $1.6 billion in annual income for Illinois and serves as a major anchor on the city’s South Side.
Why It Matters
This economic evidence comes at a critical time. Public confidence in higher education has eroded, with recent polls showing declining trust in the value of earning a college degree. Critics often focus on student debt burdens, administrative costs, or ideological disputes. Yet the financial returns to local and state economies are clear and measurable.
At UNO, bachelor’s degree holders alone were responsible for more than $1 billion in increased spending in 2024. In Connecticut, Yale University’s presence translates into an $8 billion annual economic impact, the largest among the state’s private institutions. These numbers highlight higher education as an industry that multiplies its benefits beyond classrooms and campuses, touching everything from small businesses to tax bases.
The findings also point to an often overlooked dimension of higher education’s role—stability. Colleges provide a steady flow of educated workers who tend to remain in their communities, creating a counterweight to population declines in many regions. They also attract billions in federal research dollars, construction investment, and health care partnerships, further extending their reach into local economies.
A Continuing Case for Investment
The takeaway from these reports is clear. Higher education institutions remain among the most reliable engines of local economic growth, combining direct spending with long-term alumni contributions. As policymakers debate the costs and benefits of higher education, these studies offer a reminder that colleges and universities should be evaluated not only as centers of learning but as cornerstones of economic resilience.
As UNO Chancellor Joanne Li, PhD, put it, This report proves what we’ve always known: UNO alumni are a driving force behind Omaha’s economy. Their impact sends a powerful message across the state and the country that Omaha is a place where families build futures and businesses thrive.
Whether in Omaha, Fairfield Connecticut, or Chicago’s South Side, the story is the same: higher education remains one of the best investments communities can make in their future.
