Since 2009, the Higher Education Financing System has experienced a significant reduction in state budget funding for higher education, which fell accordingly from $ 116 million. EUR in 2008 to EUR 56 million EUR in 2010 The substantial reduction in funding interrupted the discussion on the transition from the provision of minimum study cost ratios to the provision of optimal study cost ratios for one of the state-funded study places, as the funding available for higher education no longer allowed ensuring the provision of minimum study cost ratios. Also, the funding for scientific activities in higher education institutions has not been included in the state budget since 2009. These and other factors triggered a discussion on the future development of the funding system for higher education, which also includes the demand for reform in the funding model. The article summarizes the most significant trends in the Latvian higher education system after 2009.