Funding mechanisms are especially important in shaping tertiary education outcomes in areas such quality, efficiency, equity and system responsiveness. This Chapter analyses approaches to funding tertiary education which assist tertiary education systems achieve their goals.51 It reviews a number of principles for funding tertiary education, provides an overview of approaches to funding tertiary education in participating countries, and summarises the empirical evidence on the impact of specific approaches to funding tertiary education. It includes overall funding strategies, mechanisms to allocate funds to individual tertiary education institutions (TEIs), and strategies to assist students cover the costs of their participation. Particular attention is given to policy initiatives in participating countries. The Chapter concludes with a set of policy options for countries to consider.