Introduction The American higher education has undergone a significant transformation over the past century. This is evident based on the numerous anniversaries that most American colleges and universities have conducted to celebrate the ascent in the education sector at the beginning of the 21st century (Thelin, 2011, p. 363). However, the emergence of contemporary developments experienced the end of the first decade of the 21st century has dampened these achievements. Some of the challenges that universities and colleges are facing relate to financial constraints, decline in donor funding, and state appropriations. For example, students’ financial programs were caught up in congressional debates with regard to renewal of grants and loans program (Thelin, 2011, p. 363). Additionally, the American higher education has also experienced a decline in federal support with regard to university-based research and development. This has been worsened by an increment in the intensity of competition for fixed allocation with regard to grants from national agencies for example the National Science Foundation (NSF) and the National Institute for Health (NIH) (Thelin, 2011, p. 364). The occurrence of the recent global economic recession presents a new set of financial challenges to institutions of higher learning in the US. This paper entails a reflection on various changes that have influenced reconfiguration of American higher education in the 21st century. The paper also considers demographics, diversity, and research in universities to be some of the issues that have had the greatest impact on higher education. Additionally, an analysis of the influences of past eras on the present-day higher education has also been conducted. To develop a better understanding of the reconfiguration of American higher education, an evaluation of how these issues are affecting higher education today is also taken into account. A number of recommendations to deal with the identified challenges are also outlined. Reflection Several changes are critical when it comes to the American higher education. One of the major changes that have influenced reconfiguration of higher education in the US relates to an increment in the number of initiatives, which aim at stimulating change within the education system. The initiatives developed are because of the global economic and political transformations. Considering the dynamic nature of the society, there is a high demand for leaders who can effectively deal with the challenges facing the society in different spheres. One of the ways through which economies can achieve this is by ensuring that their higher education system is in line with changes occurring in the society. The initiatives developed have resulted to significant changes within the American higher education during the 21st century. One of the most notable impacts of these initiatives is the emergence of the national education reform movement during the 1st decade of the 21st century. Examples of these initiatives include the Race to the Top (RTT), Common Core State Standards (CCSS), and the Degree Qualification Profile. The objective of these initiatives was to stimulate reforms, which would improve the American higher education. Because of the initiatives, the American higher learning education has undergone significant transformation at various levels such as inst