Penn State plans to request $59 million increase in state funding for 2026-27
.jpeg "Old Main on Penn State’s University Park campus")
Penn State is prepared to request $410 million, an increase of $59 million, in total funding from the state for 2026-2027, with plans to avoid an undergraduate tuition increase for 2027-28 if it is received.
The board of trustees finance and investment committee Thursday approved requesting $410.5 million dollars from the state legislature for the fiscal year 2026-27, an overall $59 million increase from what it received in 2024-25. The full board approved the measure on Friday.
The funding Penn State receives from the state per PA resident is significantly lower than the Pennsylvania State System of Higher Education system and other state-related institutions, like Temple University and University of Pittsburgh, as well as the national average, Sara Thorndike, senior vice president for finance and business/treasurer and chief financial officer for the university, said.
Penn State receives about $5,796 in general support per Pennsylvania resident undergraduate student, the university said in a release. Per PA student, Temple receives $10,830, PSSHE receives $10,200, and Pitt receives $9,342, according to the university.
“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,” the university said.
Thorndike said what Penn State does receive from the state is then used to provide a tuition discount of more than $16,600 per PA resident student, compared to what is charged to non-resident students.
The request includes all Penn State entities. Of that amount, $291.1 million would be for general support, a requested $49 million increase. If it receives the increase for education, it would be used to keep the 2027-28 undergraduate tuition rate the same as the 2026-27 tuition rate, which the board approved in July.
About $61.7 million of the total amount would go toward agricultural research and extension, a $4 million increase that would support Pennsylvania agriculture and food supply system. Economic development would receive about $2.3 million, which would give continued funding for Invent Penn State to grow the LaunchBox and Innovation Network statewide. Penn State Health and College of Medicine would receive $16.1 million, and Pennsylvania College of Technology would get $39.3 million, a $5.3 million increase used to create more access to programs needed by Pennsylvania employers in every sector.
For the 2024-25 fiscal year, Penn State received $242 million from the state for its education mission. General support funding has remained flat at that amount since 2019-20. In the release, Bendapudi said the lack of increased funding is putting pressure on the university.
“Penn State has a deep and historic partnership with the commonwealth, and we are proud to serve as its flagship public research university,” Bendapudi said. “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.”
Bendapudi has long advocated for an increase in funding to match the per-student funding of other public universities in Pennsylvania, as well as a performance-based funding model. The state passed a bill in 2024 to establish a performance-based funding council to develop recommendations on how to distribute funding to state-related universities based on performance metrics. Pennsylvania Governor Josh Shapiro included $60 million in funding to be distributed based on recommendations of the council to Penn State, Temple University and University of Pittsburgh but it is unclear if the state legislature will include it in a budget.
Once Penn State submits its 2026-27 appropriation request, university leaders will talk with the state legislature and advocate for increased funding. The state’s deadline to pass the 2026-27 budget is June 30, 2026.
This story was originally published September 12, 2025 at 6:08 AM.
