The exacerbation of the shortage of financial resources in the current global challenges has necessitated increased efficiency in the financing of higher education institutions. Along with the increase in funding, diversification of sources and transformation of funding mechanisms for higher education systems have become topical issues. The study attempted to identify the internal structure of public funding for higher education in Europe concerning funding mechanisms. According to the results of clustering of European countries based on coverage of the population with higher education and public spending on higher education by one undergraduate, eight clusters were identified, four of which are unique and contain one country (Greece, Cyprus, Turkey, Luxembourg). Four other clusters cover countries with: incomplete public funding for higher education; state protectionism in the financing of higher education; specific forms of state funding for higher education; strategic state priority in financing higher education. The general patterns of financing higher education in European countries, the experience of expanding funding sources, efficient use of financial resources and granting autonomy to universities, which can be taken into account in the process of higher education reforms in countries with transformational economies.