Over the past few decades, America's social compact for higher education as a public good has effectively lapsed as government support of higher education has diminished. Given the need for a highly educated workforce in today's knowledge-based global economy, we propose a new compact for higher education that couples increased funding with increased institutional accountability. While the compact must retain academic freedom as an essential component of higher education, this autonomy must co-exist with rigorous accountability standards. Accountability systems should be multifaceted, as different methodologies have differing strengths and limitations. All systems should, however, inform the public and provide for institutional improvement.