The Georgian government has approved a new funding model for state universities that will combine free tuition with performance-based financial support, with the reform taking effect gradually from the 2026-2027 academic year.

Under the new system, students at state universities will receive full state funding during their first two semesters. Beginning in the third semester, students will be required to earn at least 80% of the required academic credits in the previous semester to retain full funding. Those who fail to meet the threshold will receive 50% state funding but will be eligible to regain full support by completing the required credits in a subsequent semester.

The broader university funding model, developed in cooperation with the World Bank, combines basic institutional funding with a performance-based component. The government said funding for state universities will increasingly depend on progress in areas including education quality, research, innovation, international cooperation, regional development and alignment with labour market needs. An additional GEL 42 million has been allocated for the first phase of the reform, increasing total state funding for higher education to GEL 170 million in 2027.

Prime Minister Irakli Kobakhidze said the new system would make higher education at state universities free while encouraging students to remain actively engaged in their studies. Education officials also argued that the credit-based requirement follows international practice and was developed with the support of World Bank experts.

The funding changes form part of a broader package of higher education reforms announced by the government, including the restructuring of public universities and changes to programme distribution and student admission quotas. The proposals have drawn criticism from students, academics and opposition politicians, who argue they could undermine university autonomy and limit access to higher education, while the government maintains the reforms are intended to improve educational quality and strengthen the higher education system.