Guernsey's three private colleges welcome the States' decision to continue their grant.
The Education Committee had proposed scrapping funding for Elizabeth, Blanchelande and The Ladies’ College, by 2031.
The committee had said subsidising the private education sector was not the best use of taxpayers' money, and the cash could be reallocated to support children in the State's system.
An amendment to the policy letter from deputies Gavin St Pier and Peter Ferbrache got the Assembly's support yesterday (20 March).
It will see funding of the three colleges remain atroughly its current level - around £3M a year - and only decrease if pupil numbers fall.
28 deputies voted in favour, and 11 voted against - including the head of Education Deputy Andrea Dudley-Owen and four of her committee members.
Guernsey's three private colleges say they welcome the States' decision.
"The Colleges are relieved that the government funding of the independent colleges has been secured following this week's debate.
"We are grateful to Deputies for seeing the valuable role the Colleges play in the Bailiwick’s educational landscape, island-wide community and economy.
"We would also like to acknowledge the high level of political, parent and public engagement in this important debate and the significant support we have received from the business sector and other stakeholders.
"The Colleges are also very pleased to have the opportunity to work with other schools and their leaders at a grassroots level and are excited by what might be achieved."

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