Many states have enacted, or are considering legislation that ties higher education funding to outcomes focused on student retention and graduation rates as well as other measures of student achievement. These trends are on the rise and outcomes-based funding is likely to continue to increase rather than decrease. This session will provide an overview of performance-based funding and its advantages and disadvantages. Details of legislation in specific states will be reviewed and compared. In these times of continued financial challenges, this session will also offer guidance on how colleges and universities need to prepare to comply with these mandates and receive the maximize funding based on state-specific performance-based measures.