The New Era of Carnegie Classifications: What Colleges and Stakeholders Need to Know
The Carnegie Classifications of Institutions of Higher Education underwent a redesign in April 2025, marking the most substantial update in decades. Jointly released by the Carnegie Foundation for the Advancement of Teaching and the American Council on Education (ACE), the overhaul introduces three major changes aimed at better reflecting the diversity, missions, and outcomes of U.S. colleges and universities.
1. Basic Classification → Institutional Classification
Before:
Institutions were grouped primarily by the highest degree awarded (e.g., Associate’s, Bachelor’s, Master’s, Doctoral).
The system had limited categories and was often seen as rigid and reductive.
Now:
Replaced with a more nuanced "Institutional Classification" system.
Considers multiple dimensions, including:
Most frequently awarded degree types
Academic program mix (fields of study)
Institution size
Now includes 31 distinct categories, offering more accurate groupings and comparisons.
2. Opaque Research Activity Designation → Transparent Research Tiers
Before:
Research activity was classified using Research 1 (R1), Research 2 (R2), and Research 3 (R3) designations.
The criteria were complex and not transparent, based on a formula involving research expenditures, faculty counts, and doctoral conferrals.
Now:
Introduced a clear, tiered system with published thresholds:
R1: ≥ $50M in annual research spending and ≥ 70 research doctorates awarded
R2: ≥ $5M research spending and ≥ 20 research doctorates
RCU (Research Colleges and Universities): ≥ $2.5M in research, regardless of doctoral output
This change recognizes more institutions contributing to research, even if they don’t offer doctorates.
3. New Category: Student Access and Earnings Classification
Before:
No official classification for student outcomes or equity in access.
Now:
Introduced a new category measuring:
Access: Pell Grant recipients and racial/ethnic diversity compared to region
Earnings: Median earnings 8 years post-entry, adjusted for local wage norms
Institutions that do well in both receive a new label: “Opportunity Colleges and Universities”
In 2025, 479 institutions received this designation, many of which serve lower-income and underrepresented students.
Implications
The 2025 overhaul of the Carnegie Classifications is more than just a reshuffling of categories. It fundamentally changes how colleges are understood, compared, and evaluated.
1. For Community Colleges and Teaching-Focused Institutions: Greater Recognition and Fairer Comparisons
In the old system, institutions were largely categorized by the highest degree they awarded, which often pushed two-year colleges or undergraduate-focused institutions to the margins. Now, with the Institutional Classification taking into account degree mix, program focus, and size, community colleges, regional universities, and non-doctoral institutions can be more accurately compared to their true peers.
Implication:
These schools are no longer inaccurately benchmarked against large research universities. This can open doors for:
More targeted funding opportunities
Peer-based collaborations
Stronger messaging to prospective students and policymakers about the school’s true strengths
2. For Research Institutions: Clearer Tiers and a Broader Tent
Previously, the R1 and R2 labels were opaque and sometimes politicized. The new thresholds for R1, R2, and RCU (Research Colleges and Universities) provide clear criteria and recognize research investment even among schools without doctoral programs.
Implication:
Institutions can now strategically plan research growth toward a designation (e.g., “we need to award 20 research doctorates and reach $5M in spending to reach R2”).
Mid-sized or teaching-intensive schools with strong research programs (especially in STEM or applied fields) can finally gain visibility and recognition.
Universities can better position themselves in grant proposals, faculty recruitment, and legislative advocacy by pointing to a credible, national classification.
3. For Minority-Serving Institutions and Access-Focused Colleges: Validation of Mission
The new Student Access and Earnings Classification gives long-overdue attention to economic mobility and equity outcomes. By naming institutions with high Pell enrollment and strong post-college earnings “Opportunity Colleges and Universities,” the new system elevates mission-driven colleges doing powerful, but often underrecognized, work.
Implication:
MSIs, regional publics, and urban institutions may finally receive national recognition for outcomes that matter to students and families.
Schools serving marginalized communities can leverage this designation in strategic planning, grant writing, and branding.
It may reshape donor and policymaker perceptions: success is no longer just about prestige—it’s about impact.
4. Strategic Planning Will Have to Evolve Quickly
The new classifications aren’t just labels; they’re signals. Signals that governors, accreditors, donors, and prospective students will pay attention to. Institutions that ignore them risk being left behind.
Implication for Strategic Planning:
Institutions will need to analyze how they’re classified and why and align strategic goals accordingly.
If a university is just shy of a research designation, or missing the mark on equity outcomes, it may drive investments in:
Faculty hiring
Graduate programs
Student support infrastructure
Outcome tracking and analytic
Boards and leadership teams will need to ask: “Where do we want to fall in the next iteration of these classifications, and what’s the roadmap to get there?”
This also makes assessment and data strategy more important than ever. Colleges must be able to measure and prove not just inputs (enrollments, programs) but outcomes (earnings, equity, research impact).
Final Thoughts
The new Carnegie Classifications challenge institutions to see themselves more clearly and more completely. For colleges and universities committed to meaningful impact, this is a unique opportunity to evolve intentionally in ways that reflect their mission, strengths, and goals.
Alla Breve Consulting partners with institutions to turn insights like these into practical, forward-thinking strategies. Whether you're refining academic offerings, improving student success, or positioning your institution for greater research recognition, we’re here to help.
Now is the time to align your vision with the future of higher education. Let’s build a strategy that moves your institution forward with clarity and purpose.
References
Carnegie Classifications of Institutions of Higher Education. "Basic Classification Overview."
https://carnegieclassifications.acenet.edu/carnegie-classification/basic-classification/Carnegie Classifications. "Carnegie Classifications Release 2025: Research Activity Designations Debut, Updated Methodology."
https://carnegieclassifications.acenet.edu/news/carnegie-classifications-release-2025-research-activity-designations-debut-updated-methodology/Inside Higher Ed. "New Carnegie Classification Focuses on Student Success."
https://www.insidehighered.com/news/students/careers/2025/04/24/new-carnegie-classification-focuses-student-successCommunity College Daily. "Redesigned Carnegie Classifications."
https://www.ccdaily.com/2025/04/redesigned-carnegie-classifications/
