Editor’s note: The Penn State Board of Trustees voted to approve the University's 2026-27 state funding request, as outlined below, during its meeting on Sept. 12.
UNIVERSITY PARK, Pa. — Penn State is preparing to ask the commonwealth for a $49 million boost to its 2026-27 general support appropriation, an amount that would allow the University to freeze tuition for all undergraduate students, at all campuses, for the 2027-28 academic year.
At its Sept. 11 meeting, the Penn State Board of Trustees Committee on Finance and Investment endorsed a request for $291.1 million in general support funding, part of a total $410.5 million state appropriation request. The full board is scheduled to vote on the proposal during its Sept. 12 meeting.
The University's general support appropriation, which offsets tuition costs for approximately 42,000 Pennsylvania-resident undergraduates and supports Penn State’s academic mission, has remained flat at $242.1 million since 2019-20.
“Penn State has a deep and historic partnership with the commonwealth, and we are proud to serve as its flagship public research university,” said President Neeli Bendapudi. “Yet, even as Penn State’s enrollment has grown over many decades, there has not been a corresponding increase in our state appropriation to keep pace. As a result, our funding per student lags behind all other public universities in Pennsylvania, placing significant pressure on our bottom line. This request, if granted, will support our continued efforts to keep a Penn State education within financial reach for all qualified students, strengthen our ability to serve Pennsylvania communities, and prepare our students to meet critical workforce needs and achieve their extraordinary potential.”
A significant funding gap
Penn State currently receives about $5,796 in general support per Pennsylvania resident undergraduate student. By comparison, per in-state student, Temple University receives $10,830, the Pennsylvania State System of Higher Education receives $10,200, and the University of Pittsburgh receives $9,342. Nationally, public universities averaged $11,683 in state support per full-time student in fiscal year 2024.
Despite the gap, as part of its commitment to providing Pennsylvanians with an accessible and affordable education, the University significantly amplifies the state’s appropriation to provide in-state undergraduates with an average tuition discount of $16,642 per year compared to nonresidents. A recent study also found that funding for Penn State generates a significant return on the state’s investment, with the University contributing $15.8 billion annually to Pennsylvania’s economy.
To match the per-student funding levels of Pennsylvania’s other public universities, an additional $148 million in general support funding would need to be appropriated to Penn State. Recognizing that such an increase would be difficult to achieve in one year, Bendapudi said Penn State is requesting only the amount necessary to freeze tuition for all undergraduate students — which the University would do for 2027-28 if the full $49 million increase is approved by the state. As part of Penn State’s two-year budget process, tuition schedules for the 2026-27 academic year — which include a tuition freeze for in-state undergraduates at the Commonwealth Campuses — were previously approved by the Board of Trustees in July 2025.
Funding priorities and impact
Penn State's overall $410.5 million appropriation request represents an increase of $59.1 million.
With Pennsylvania’s 2025-26 state budget — including Penn State’s funding for the current fiscal year — still unresolved, the University is proceeding as usual with its 2026-27 appropriation request in accordance with the instructions provided by the various commonwealth departments that appropriate funds to the University. However, because the state’s 2025-26 budget process has not concluded, Penn State has based its request on level funding for all budget lines, even as it continues to advocate for additional state support, including through performance-based funding.
Penn State’s request for 2026-27 appropriations breaks down as follows:
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General Support ($291.1 million, an increase of $49 million): Helps to keep in-state tuition rates affordable, sustain academic quality, and support more than 42,000 Pennsylvania-resident students.
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Agricultural Research and Extension/Land Scrip ($61.7 million, an increase of $4 million): Drives innovation, economic growth, and solutions for Pennsylvania agriculture and the food supply system across all 67 counties. Additional funding would enhance the College of Agricultural Sciences’ capacity to address endemic and emerging threats to agriculture; advance agricultural technology; build the forestry, food manufacturing and bio economies; and transition Pennsylvania agriculture as societal, competitive and environmental challenges increase.
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Pennsylvania College of Technology ($39.3 million, an increase of $5.3 million): Expands access to high-demand technical programs needed for the state’s workforce for the college’s 4,900 students, 89% of whom are Pennsylvania residents.
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Penn State Health and College of Medicine ($16.1 million, an increase of $766,000): Supports medical training and access to health care, particularly in rural communities.
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Invent Penn State ($2.35 million, representing level funding): Strengthens statewide entrepreneurship and innovation through the LaunchBox and Innovation Network and expands access to the Pennsylvania Technical Assistance Program.
Economic return for the commonwealth
In addition to the University’s annual $15.8 billion economic impact, Penn State drives growth, creates opportunities and improves lives across Pennsylvania. Consider that:
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Penn State supports and sustains nearly 110,000 Pennsylvania jobs.
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One out of every 10 jobs in Pennsylvania is supported by Penn State and Penn State alumni.
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More than 400,000 Penn State alumni live and work in Pennsylvania.
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For every $1 in state appropriations received, Penn State returns $25.06 to the state’s economy and $2.27 in tax payments.
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More than $782 million in local and state tax revenues are generated annually by Penn State.
Next steps
Following the submission of its 2026-27 appropriation request, Penn State leaders will spend the next nine months in dialogue with the General Assembly and the governor, advocating for increased funding for the University. These conversations — including efforts to adopt the commonwealth’s proposed performance-based funding framework — will continue leading up to and through the state’s June 30, 2026, deadline to finalize appropriations and pass a 2026-27 budget.