[Editor's note: Penn State President Neeli Bendapudi testified about the University's impact on the commonwealth and its need for additional state support during the House Appropriations Committee hearing on March 11. A recap of the hearing is available here.]
Dear Penn Staters,
On Wednesday morning (March 11), I will have the honor of testifying before the Pennsylvania House Appropriations Committee in Harrisburg about the need for greater investment in our Pennsylvania-resident students and University. During the hearing, I plan to emphasize that state funding is critical to advancing our mission and that continuing to invest in Penn State’s education and research enterprise will help to strengthen the commonwealth’s long-term economic vitality and national competitiveness.
In particular, I will encourage our elected leaders to maintain the positive momentum they began last year to bring additional, performance-based funding for our students and mission to fruition for the 2026-27 fiscal year.
A partnership that delivers
Retaining Pennsylvania’s top talent is a priority, especially as other states compete for our students and workforce. People choose to put down roots in a place when they see real opportunity, strong communities, and a clear path to good jobs. Penn State’s partnership with the commonwealth is one of the most effective ways to create those conditions.
For generations, state investment has helped Penn State become one of the world’s leading public research universities. That support ensures Pennsylvanians from all backgrounds have access to a top-tier education and the opportunity to build successful lives and careers right here at home.
As Pennsylvania’s only land-grant university, Penn State was founded on a simple, yet powerful, promise: that higher education should expand opportunity, fuel discovery, and serve our fellow citizens.
That promise has defined the trajectory of this institution and the vitality of our state for more than 160 years, and it remains alive across Pennsylvania today.
It is reflected in the more than 41,000 Pennsylvania undergraduates who depend on in-state tuition to pursue a world-class education right here in the commonwealth. Penn State has more than 800,000 living alumni, 400,000 of whom live and work in Pennsylvania. Penn Staters power industries, lead schools and hospitals, launch businesses, and strengthen civic life in communities statewide.
Our promise is found in the nearly $16 billion in annual economic impact we have across the commonwealth, returning more than $25 to the state’s economy for every public dollar invested in our students and mission. Penn State also returns $2.27 in tax payments to the commonwealth for every $1 in state appropriations received, more than doubling the state’s return on investment from the very outset.
Our promise is in our world-class research enterprise, which drives breakthroughs, saves lives, strengthens national defense, advances technology, and addresses complex societal challenges. Penn State and our researchers attract crucial federal and private research funding to our state, achieving a record $1.44 billion in research expenditures last year alone.
Our promise is in the nationally ranked hospitals and clinics of Penn State Health, where high-quality care improves and saves lives; and in our Invent Penn State LaunchBoxes and innovation hubs across the state that have assisted thousands of entrepreneurs, helped launch hundreds of Pennsylvania companies, and supported jobs and internships that keep talent and opportunity within our borders.
And our promise remains deeply rooted in our agricultural heritage, conducting research that will help to feed a growing world and position Pennsylvania’s agricultural industry to thrive. We are a partner to the state when challenges arise, from avian flu to the spotted lanternfly, and we are committed to building a bright future, offering research-based programs and expertise in every Pennsylvania county and equipping our farmers with the latest innovations they need to compete in the 21st century.
A renewed investment in our shared future
As Pennsylvania navigates demographic and economic change, building the next generation of thinkers and doers is more important than ever. The state's investment in our students and mission is not discretionary — it is strategic. Economic competitiveness depends on a skilled workforce, vibrant communities and research-driven innovation.
Consider who we serve. Of our more than 86,500 students, nearly 60% are Pennsylvania residents; more than 19,000 are the first in their families to attend college; and 20,000 are federal Pell Grant recipients with significant financial need. For thousands of families, the longstanding partnership between the commonwealth and Penn State represents a gateway to opportunity, prosperity and upward mobility.
Today, that partnership requires renewed attention.
The commonwealth’s per-in-state-student investment in Penn State ranks last in Pennsylvania and far below the national average. The state’s investment in our Pennsylvania students has not increased since 2019, even as costs rise. This reflects a longer-term trend: Penn State’s general support appropriation was larger in 2000 ($242.9 million) than it is today ($242.1 million). If those dollars had kept pace with inflation over the last quarter century, our general support funding would now exceed $450 million. Even in the face of these challenges, Penn State and our Board of Trustees have remained committed to keeping tuition as affordable as possible, either freezing tuition or keeping any increases below the rate of inflation for in-state students over the last decade. This includes zero tuition increases for all in-state undergraduate students at our Commonwealth Campuses for the past three years.
It is important to note that every dollar of our general support funding goes toward our in-state tuition discount, which, on average, saves Pennsylvania undergraduates more than $16,000 annually on tuition costs compared to their nonresident peers.
To begin addressing this per-student funding imbalance, we are requesting a $49 million increase in general support appropriation. If awarded, those dollars would directly benefit students through a tuition freeze for all undergraduates across all campuses for 2027-28. Such a reinvestment would send a powerful signal that Pennsylvania and its land-grant university are united in their commitment to keeping costs as low as possible.
I have long supported Pennsylvania’s implementation of a performance-based funding model for public higher education. Last November, the General Assembly established the State-Related University Performance Fund, and just last month, Gov. Josh Shapiro proposed a $30 million allocation to launch the new fund. This forward momentum is encouraging, but additional legislative action is needed to bring the model to life.
If approved, performance-based funding would tie future funding increases to outcomes we have long prioritized and delivered on — strong student outcomes, expanded access, workforce preparation, and meaningful community impact.
I look forward to continued dialogue with leaders in Harrisburg about how increased and sustained investment in Penn State represents an investment in Pennsylvania and our shared future.
I also would like to express my gratitude to you, the many members of our community. To our students, faculty, staff, alumni, friends and supporters who have spoken up on behalf of Penn State and shared with our elected leaders the vital role the University plays in your own lives, your voice has and continues to make a difference. If you have not yet joined the Advocate Penn State network, I encourage you to visit psu.edu/advocate.
Sincerely,
Neeli Bendapudi
Penn State President