Will Penn State get a funding increase? Here’s what Gov. Shapiro’s proposed budget includes
.jpeg "Old Main on Penn State’s University Park campus")
Pennsylvania’s governor unveiled his 2025-26 budget proposal Tuesday with flat funding for general support at Penn State but included additional funds to be distributed to some state-related universities as part of the newly established performance-based funding model.
Gov. Josh Shapiro’s budget proposes $242.1 million in funding for Penn State’s general support — the same amount it’s received the last six years — and $60 million in funding to be distributed based on recommendations of the Performance-Based Funding Council to Penn State, Temple University and University of Pittsburgh.
In his budget proposal, Shapiro said this budget continues progress made in higher education as part of last year’s budget.
“This budget builds on the progress made during last year’s budget in support of the Blueprint for Higher Education, making competitive funding available to our State-Related Universities to incentivize them to return results that benefit all Pennsylvanians. It provides funding to our public universities and community colleges and directs new investments into workforce development to create more paths to opportunity,” he said in a letter outlining his proposal.
Penn State requested $272.1 million in general support funding, as approved by the board of trustees, an increase of $30 million. Penn State has not received an increase of general support funding since 2019-20, which is used to offset the cost of tuition for in-state undergraduate students and to support its academic mission.
University leadership has long supported a performance-based funding model, which was established as part of last year’s budget. Penn State President Neeli Bendapudi said in a news release she’s appreciative that Shapiro supports that in his budget proposal.
“Penn State has been proactive in our support of this new, additional funding model and has already made strides toward some of the proposed potential metrics through our annual accountability report,” Bendapudi said. “Success in similar models throughout the country has come when universities and their states work together on shared goals that support positive student outcomes and workforce and economic development. I am eager to continue to work with our leaders in Harrisburg to get performance-based funding across the finish line.”
The Performance-Based Funding Council will make recommendations on how to distribute the funds. Those recommendations are anticipated by April 30, Shapiro’s proposed budget states. Any funds distributed to Penn State through the performance-based funding model would be in addition to the general support funding.
Shapiro gave a few examples of possible metrics the state council could consider for the performance-based formula during his budget address: graduating students with in-demand degrees and skills, graduating first-generation college students, and incentivizing universities when their graduates stay and work in Pennsylvania.
The council has held two public hearings so far, including one at Penn State, to hear testimony related to performance-based funding formulas. The last one is scheduled for Feb. 19 at Pitt.
Shapiro’s proposed budget is the first step in Pennsylvania’s budget process. A final budget needs to be passed with lawmakers by June 30.
Here’s a breakdown of Shapiro’s proposed 2025-26 funding for Penn State:
General Support: $242.1 million in general support funding, with an additional $60 million in performance-based grants for Penn State, Pitt and Temple.
Agricultural Research and Extension (Land Scrip Fund): $60.6 million, a proposed increase of $2.9 million (5%) over 2024-25. The funding supports Penn State Extension and research conducted by the College of Agricultural Sciences.
Pennsylvania College of Technology: $35.7 million, an increase of $1.7 million (5%) over 2024-25. Penn College offers academic programs focused on hands-on, applied-technology education.
Penn State Health and the College of Medicine: $15.1 million, level funding from 2024-25. This funding is used for medical assistance to provide health care for citizens with limited finances, specialty disease programs and research.
The proposed budget did not include line-item funding for the Invent Penn State initiative, the university said, which Penn State included in its appropriation request. The state funded it in the 2024-25 budget.
This story was originally published February 5, 2025 at 10:24 AM.
