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Penn State was founded in 1855 as a publicly supported agricultural college. It brought science to bear on age-old problems of food and fiber production. It broadened its mission a few years later, after Congress passed the Morrill Land-Grant Act (1862). The act encouraged institutions of higher education nationwide to add engineering, mining, agriculture, and other applied sciences to existing courses of studies that were grounded in arts and letters. These subjects would be useful to a nation that was just beginning to enter a period of unprecedented economic and technological growth.
Congress gave each state an allotment of federal land 30,000 acres for each senator and representative the state had in Congress. The states were to sell the land and use the proceeds to create endowments, which in turn would provide dependable support for colleges that agreed to introduce the new curriculum. These colleges also had to pledge that the cost of this new higher education would remain within reach of Americans of average financial means. Land-grant institutions thus have often been termed "democracys colleges."In 1863, the Pennsylvania legislature designated Penn State the Commonwealths sole land-grant institution -- a distinction it still holds. Pennsylvania received 780,000 acres of land, which were sold for a total of $439,000. The state legislature then converted this amount to a $500,000 bond yielding 6 percent ($30,000) annually to Penn State. The bond functioned in effect as Penn State's "endowment" during those early years.
In return for this support, Penn State began a steady expansion of its academic program. It also pledged to disseminate the benefits gained through research and instruction, which today takes the form of hundreds of outreach programs that touch the lives of millions of people each year throughout Pennsylvania and across America. Thus the Morrill Land-Grant Act in effect conferred on Penn State a three-part mission: teaching, research, and public service. This mission continues to guide the University in all that it does for Pennsylvania, the nation, and humankind.