Penn State’s Board of Trustees approved the university’s new 2026-27 operating budget during its meeting on Friday. The budget will total $10.2 billion and go into effect on July 1, 2026.

In-state undergraduate tuition will increase by 2% to an extra $205 per semester, and out-of-state undergraduate tuition will increase by 4% to an extra $857 per semester at University Park.

At the Commonwealth campuses, in-state tuition will remain the same while out-of-state tuition will increase by 1%, between $117 and $133 per semester, depending on the campus.

All undergraduates through the World Campus will also see a 1% increase for an extra $78 per semester.

For students living on campus at University Park, the standard housing and dining rate will go up by 3.21% to add $216 per semester, totaling $6,940 per semester for the most common plan.

Students taking nine or more credits at University Park will also see an increase of 2.3%, for a total of $7, to their Student Initiated Fee, which will now cost $315 per semester.

Aside from raising tuition, the budget also includes merit-based raises and an increase in graduate assistant stipends. The 2024-25 budget surplus, projected to be $44.4 million, will transfer to help deferred maintenance needs.