Despite the name, the University of the State of New York is not an educational institution but rather a governmental licensing and accreditation body that sets standards for schools operating in New York State, from pre-kindergarten through professional and graduate school, as well as for the practice of a wide variety of professions.

The new law empowered the Regents to "visit and inspect all the colleges, academies, and schools" in the state, award higher academic degrees, hold and distribute funds, and exercise other powers of a corporation.

The legislature gave the Regents responsibility for the New York State Library and New York State Museum in 1844 and 1845, respectively, and in 1889 and 1892 expanded the USNY's responsibilities significantly to include the incorporation and supervision of all libraries, museums, correspondence schools, and other educational institutions.

The head of each BOCES, known as the District Superintendent, acts as the New York State Commissioner of Education's, and by extension, the Chancellor of the Board of Regents', field representative.

This program was an outgrowth of the practice of giving World War II veterans school and college credit in recognition of their military education and experience.

First named the "Regents External Degree Program," it was established in 1971 with financial support from the Ford and Carnegie Foundations.

Since the school offers both undergraduate and graduate programs, the institution decided to change the name again to Excelsior University in 2022.

Excelsior University is now a constituent member of USNY in the same way that other institutions of higher education (including private colleges) in New York State are.

Additionally, USNY has the affiliation of, and oversight for, more than half a million professionals practicing in 58 licensed professions, ranging from accountancy to architecture to engineering to massage therapy to hair styling, as well as 200,000 public certified school teachers, counselors, and administrators.

Certain education-related institutions (such as most museums) could exist in New York State without being part of USNY; however, as an example, most museums in New York State choose to be part of USNY (i.e., be chartered by the Board of Regents) in order to obtain tax-exempt nonprofit status and other benefits.

Today, for a variety of reasons, USNY directly issues diplomas to individuals meeting graduation requirements at several postsecondary institutions in New York State.