Penn State to Seek $40M Increase in State Funding

Penn State will request a $40 million increase in its appropriation from the commonwealth in the 2025-26 budget after five years of mostly stagnant state funding.

The university's Board of Trustees on Friday approved the appropriation request, which includes a $30 million increase in Penn State's general support appropriation — the funding used to support the university's academic mission and to provide a discounted tuition rate for Pennsylvania resident students.

President Neeli Bendapudi described the general support increase request as a step toward raising Penn State's per-student state funding for resident students, which at $5,789 is less than state-related peers Pitt ($9,538 per student) and Temple ($10,505) and the Pennsylvania State System of Higher Education schools ($9,526). The national average for state appropriations to public colleges and universities is $11,040, according to State Higher Education Finance .

If the General Assembly and governor sign off on the increase, the appropriation would be in addition to funding awarded from the new Performance-Based Funding Council , which is expected to develop a process for distributing funds to Penn State, Pitt and Temple using performance-based metrics starting in 2025-26..

"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," Bendapudi said in a statement. "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.”

The increase would bring Penn State's general support appropriation, which has been $242.1 million since 2019-20, to $272.1 million. According to the university, the additional funding would be used for need-based student aid and grants-in-aid; to cover cost increases and deferred maintenance for education facilities; to invest in academic programs that align with Pennsylvania’s workforce priorities; and to provide modest salary increases to faculty and staff.

Penn State's overall $40 million ask would bring its total state appropriation to $391.5 million. It includes:

• General support appropriation of $272.1 million, a $30 million increase.

• Agricultural research and Penn State Extension funding of $61.7 million, a $4 million increase. "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," the university wrote in a news release.

• Pennsylvania College of Technology funding of $39.3 million, an increase of $5.3 million. A special-mission affiliate of Penn State based in Williamsport, Penn College has nearly 100 programs for applied-technology education in high-demand career fields. "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," according to the university.

• Penn State Health and the College of Medicine funding of  $16.1 million, an increase of $765,000. The state funding is used to provide medical assistance for low-income individuals, prepare medical students for careers in primary care and rural medicine and to support health and wellness programs across the state, particularly in rural areas.

• Invent Penn State funding of $2.35 million, level with 2024-25. Funding for the Penn State economic development initiative would be used to grow the LaunchBox and Innovation Network statewide, and to expand access to the Pennsylvania Technical Assistance Program for small and medium businesses.

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