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Penn State Seeking Increased State Funding For 2027-2028

Penn State wants more funding from Pennsylvania.

The university is seeking increased state funding for the 2027-2028 fiscal year, including a proposed $60 million performance-based funding pool shared among Penn State, Pitt, and Temple, as well as support for resident students and families.

The Penn State Board of Trustees approved the university’s 2027-2028 state funding request on Friday, September 18.

The proposed $60 million State-Related University Performance Fund represents a $50 million increase from the $10 million allocated to the fund for 2026-2027. Penn State received nearly $4.5 million from the pool this year.

The program distributes funding based on factors including Pennsylvania student enrollment, the number of Pell Grant recipients and community college transfers, graduation rate, affordability, and the production of degrees in high-demand fields.

In addition to performance-based funding, Penn State is requesting a total state appropriation of $367 million. This includes $242.1 million in general support, the same amount as in 2026-27, which helps keep tuition lower for more than 41,000 Pennsylvania undergraduate students.

The university currently receives an average of $5,863 in general state support per in-state undergraduate. According to the university, that amount is lower than the per-student funding at Pitt, Temple, and Pennsylvania State System of Higher Education universities.

The request also includes $63.7 million for Penn State Agricultural Research and Extension, $41.2 million for Pennsylvania College of Technology, $17.1 million for Penn State Health and the College of Medicine, and $3 million for Invent Penn State.

Penn State President Neeli Bendapudi said increased state investment would support success, workforce preparation, and the university’s impact throughout Pennsylvania.

Penn State reported that it contributes approximately $15.8 billion to Pennsylvania’s economy annually and supports nearly 110,000 jobs across the commonwealth.

It generates more than $782 million in state and local tax revenue.

University officials will work wth Gov. Josh Shapiro and the Pennsylvania General Assembly over the coming months as the state develops its 2027-28 budget. Pennsylvania has until June 30, 2027, to finalize appropriations and approve the budget.

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