UNIVERSITY PARK, Pa. — The Penn State Board of Trustees Finance and Investment Committee today voted against a proposed transaction to transfer the operating assets of WPSU public radio and television stations to WHYY, a public media organization based in Philadelphia. Board members rejected the proposal for the University to support the transition of WPSU’s assets to WHYY with a $17 million subsidy over five years. Penn State has budgeted funds for WPSU's operations through the end of June 2026. Now, the University will develop a wind down plan ending, at the latest, on June 30, 2026.
“This was an incredibly difficult decision for trustees, as WPSU has long provided quality public broadcasting programming for communities throughout Central Pennsylvania,” said Board Chair David Kleppinger. “We have worked with the administration to find the best path forward for the station and our people who work there. But, given the significant headwinds facing higher education and public media, we could not support the proposed transaction. We know this is a deeply disappointing outcome and we are grateful to the dedicated WPSU employees whose work has enriched our lives and made our community stronger.”
In fiscal year 2024, the University implemented a budget model focused on keeping tuition costs as low as possible for Pennsylvania families amid rising costs, inflation, demographic challenges and stagnant state funding. The University has been cutting costs as part of the model and has sold other assets to more acutely focus on its core academic mission. For some time, Penn State had been exploring a number of alternative funding models for WPSU, which has depended on annual subsidies of at least $3.4 million from the University. The recent rescission of federal funding for public media only intensified the budget pressures on the station.
The proposal Penn State put before the board was to transfer the operating assets of WPSU to WHYY and provide a $17 million subsidy, which was structured to decline over a five-year period, and give WHYY an opportunity to help WPSU reach a financial break-even point and continue broadcasting across Central Pennsylvania. However, the board committee decided the University should not take on such a significant financial commitment, especially given other pressures facing higher education.
The acquisition also would have needed to be approved by WHYY’s board and granted regulatory approval from the Federal Communications Commission. While the proposal would have allowed WPSU to continue broadcasting, most WPSU staff would have likely been laid off from the University, with some being offered positions by WHYY.
University leaders are meeting directly with WPSU employees today to discuss next steps and answer questions with the information available at this time.