The COVID-19 pandemic has disrupted the global and U.S. economy more profoundly than any other event since World War II. Just as the subprime mortgage crisis ushered in an 18-month economic decline and an ensuing state budget crisis, the current economic slide threatens to leave us in an even larger fiscal hole. Since COVID-19 hit, millions of Americans have lost their jobs, with low-income, Black, Hispanic, and Native Americans hardest hit. Recognizing the urgency of the moment, the authors have solicited advice from leading experts in higher education policy and finance and developed a framework to help a wide range of state leaders face the crisis. Reductions in state support to postsecondary education may be unavoidable, and they will cause harm. However, by rejecting the customary "across-the-board" approach and prioritizing what works, states can implement longer-term solutions that create equitable, accessible, affordable paths to postsecondary credentials that provide upward economic mobility for the most vulnerable populations. This report is a detailed framework to help policymakers make strategic budget decisions. This framework includes an assessment of states' economic and policy contexts and applies the following principles: (1) Principle 1: Prioritize funding for institutions that can best serve Black, Hispanic, Native American, and low-income students and those institutions that provide timely opportunities for unemployed or underemployed individuals to reskill; (2) Principle 2: Protect and expand need-based financial aid through increased or reallocated investment; (3) Principle 3: Support programs and strategies that advance students' ability to complete credentials; (4) Principle 4: Expand resources and invest differently to drive economic growth; and (5) Principle 5: Evaluate and improve system and institutional cost structures. Each of the principles is described in more detail in this report and is accompanied by a recommended framework for how states can examine current practices against these principles and make strategic decisions over the long run.