Editor’s note: The Penn State Board of Trustees voted to approve the University's 2025-26 state funding request, as outlined below, during its meeting on Sept. 6.

UNIVERSITY PARK, Pa. — As an incremental step toward raising Penn State’s per-student state funding to match Pennsylvania’s other public universities, Penn State leaders are requesting a $30 million increase in the University’s 2025-26 general support appropriation.  

During its meeting today (Sept. 5), the Penn State Board of Trustees Committee on Finance and Investment recommended for approval a general support appropriation request of $272.1 million, funding that supports Penn State’s academic mission and is used to offset the cost of tuition for more than 42,000 Pennsylvania-resident undergraduates and their families. Penn State’s general support funding has remained flat at $242.1 million since 2019-20. Even as state funding has stagnated and costs have increased, Penn State, in support of its land-grant mission to educate the citizens of the commonwealth, has continued to provide an in-state tuition discount that far exceeds the per-student appropriation. 

“I am proud to say that as Pennsylvania’s flagship public research university, we impact the lives of the state's citizens through our three-part mission of teaching, research and service, and we do so in large part because of our rich history of partnership with the commonwealth,” said Penn State President Neeli Bendapudi. “Despite our statewide footprint that contributes more than $12.1 billion annually to Pennsylvania’s economy, Penn State’s funding per in-state student ranks far below the national average and last among the commonwealth’s public universities — a disparity that has placed significant pressure on our tuition rates and budget. This appropriation request, if approved and coupled with additional state support from a robust and fair performance-based funding system, will strengthen our work to keep a Penn State education accessible and affordable for all Pennsylvanians and prepare our students to fill critical needs in the state’s workforce.”  

In addition to general support, the appropriation request includes funding for Penn State Agricultural Research and Extension; Pennsylvania College of Technology, which continues to see increased demand and enrollment growth; Penn State Health and the College of Medicine; and Invent Penn State. In total, the committee advanced an appropriation request of $391.5 million, an increase of $40.1 million over 2024-25 funding. The full board will vote on the University’s 2025-26 appropriation request during its meeting on Friday, Sept. 6. 

Bendapudi noted that according to a recent independent economic impact study, investing in Penn State is a good investment for Pennsylvania. Penn State's $12.1 billion economic impact supports and sustains 81,278 jobs throughout the state. For every $1 in state appropriations received, Penn State returns $15.77 to the state’s economy and directly returns $1.71 in tax revenue. 

Penn State’s current general support appropriation, divided equally among all 42,000 in-state undergraduates, amounts to approximately $5,789 per student — funding that Penn State significantly amplifies, with the average in-state undergraduate paying $15,809 less for tuition annually than a nonresident student. In contrast, Temple University receives approximately $10,505 in state funding per student, the University of Pittsburgh receives $9,538 per student, and universities in the Pennsylvania State System of Higher Education receive $9,526 per student. Nationally, in 2023, public institutions received an average of $11,040 in education appropriations per full-time student. 

To match the per-student funding levels of Pennsylvania’s other public universities, the commonwealth would need to appropriate to Penn State an additional $156 million in general support funding for 2025-26. Recognizing such an increase would be difficult to achieve in one year, Penn State is proposing a $30 million increase in its general support appropriation as an incremental step to close the funding gap. 

If Penn State’s general support appropriation request is approved by the General Assembly and governor, the University would use the additional funding as follows: 

• For need-based student aid, grants-in-aid, and other vital student success services in support of access and affordability. 

• To cover cost increases and deferred maintenance on education facilities.  

• To invest in academic programs that align with Pennsylvania’s workforce priorities, such as engineering, computer science, information sciences and technology, education, and health care. 

• To provide modest salary increases for faculty and staff, which are necessary to retain top talent and provide students with world-class learning experiences. 

Penn State’s requested appropriation would be in addition to any funds awarded to the University as part of the state’s forthcoming performance-based funding model, which is expected to be enacted for the 2025-26 funding cycle after the state’s new Performance-Based Funding Council determines specific criteria.   

Penn State’s appropriation request by the numbers 

Overall, Penn State’s total $391.5 million appropriation request for 2025-26 breaks down as follows: 

• General Support: $272.1 million, an increase of $30 million over 2024-25 funding. General support funding covers core teaching costs in Penn State’s education budget, allowing the University to offer an in-state tuition rate that directly impacts thousands of Pennsylvania students and their families. These dollars also enable Penn State to invest in the quality of its academic programs so that it can attract the state’s top students and prepare them for careers in Pennsylvania.  

• Agricultural Research and Penn State Extension: $61.7 million, an increase of $4 million over 2024-25 funding. These programs drive progress by translating scientific research and innovation into real-world applications, new businesses, and high-quality jobs in one of Pennsylvania’s most important industries and are not supplemented by student tuition or state-appropriated general education dollars. Penn State Extension translates this new knowledge into real-world solutions implemented in every county in the commonwealth, providing lifelong access to research-based education and training in agriculture to all Pennsylvanians. Current priorities include addressing endemic and emerging diseases and invasive species, driving ag technology solutions, building a sustainable bioeconomy, and transitioning Pennsylvania agriculture and growing the ag economy.  

• Pennsylvania College of Technology: $39.3 million, an increase of $5.3 million over 2024-25 funding. Penn College, a special-mission Penn State affiliate, offers nearly 100 academic programs focused on hands-on, applied-technology education in high-demand career fields that are critical to Pennsylvania’s workforce needs. This requested increase would benefit the college’s growing enrollment of more than 4,700 students, 89% of whom are Pennsylvania residents. The funding would create broader access to in-demand programs such as nursing, welding, building automation, HVAC, electrical, IT-cybersecurity, mechatronics, and aviation maintenance that are needed by employers across the commonwealth. 

• Penn State Health and the College of Medicine: $16.1 million, an increase of $765,000 over 2024-25 funding. This funding is used for medical assistance to provide access to high-quality health care for citizens with limited financial means. This funding also helps to prepare medical students for careers in primary care and rural medicine through the Regional Medical Campus at University Park, as well as support programs to enhance the overall health and wellness of Pennsylvanians, particularly in rural areas. 

• Invent Penn State: $2.35 million, representing level funding from 2024-25, as a co-investment with the University to drive economic development. This funding would be used to strengthen and grow Invent Penn State’s LaunchBox and Innovation Network across Pennsylvania, and to further expand access to the Pennsylvania Technical Assistance Program for small to medium enterprises, with an emphasis on the manufacturing sector. 

Following submission of its 2025-26 appropriation request to the state, Penn State leaders will be engaged in discussions with elected leaders in Harrisburg over the next nine months — including conversations around the state’s first performance-based funding model — until a final appropriation is set in late June 2025.