Penn State’s Board of Trustees approved the $7.4 million sale of the Penn State York campus and a $16.6 million renovation of Thompson Hall at its meeting Friday.

The board approved selling approximately 53 acres of the Penn State York campus to York College of Pennsylvania. The sale comes as Penn State prepares to close seven Commonwealth Campuses following the spring 2027 semester.

York College plans to repurpose the property for educational purposes. The college is partnering with WellSpan Health to expand opportunities in healthcare education and workforce development.

The sale follows the board’s September approval of transactions involving Penn State Shenango and Penn State Wilkes-Barre — two other campuses scheduled to close.

The Board of Trustees also approved a $16.6 million project to renovate Thompson Hall at University Park. The project will modernize aging bathrooms, improve student amenities and staff spaces, and add 14 beds to the West Hall residence hall.

The renovations will follow a similar approach to improvements previously completed at nearby Hamilton Hall.

The board additionally approved $12.2 million projected to upgrade electrical infrastructure and navigational systems for Runway 06/24 at State College Regional Airport.

The project will replace aging electrical equipment and introduce energy-efficient LED lighting to improve runway visibility, reliability, and safety. Construction is expected to begin in May 2027 and reach substantial completion in November 2027.

According to university officials, the project will be largely funded through Federal Aviation Administration grants, with construction primarily taking place at night to minimize disruptions to airport operations.

Beyond the financial decisions, trustees discussed Penn State’s growing investment in artificial intelligence.

During Thursday’s joint meeting of the Research and Technology and Student Success committees, university officials presented updates on AI initiatives across education, research, and university operations.

According to the committee report, Penn State’s AI Essentials programs had awarded more than 177,000 certifications to students and employees, while the university’s AI studio has attracted more than 17,000 users since launching in April,

The committee also heard from a student representative about AI’s impact on their academic experiences and career preparation.

During the presidential report, Penn State President Neeli Bendapudi emphasized student success, university transformation, and research development.

Bendapudi announced that Penn State’s research expenditures reached a record $1.48 billion, up slightly more than 2% from the previous year.

However, she acknowledged that funding from the Department of Health and Human Services and the National Science Foundation declined compared to the previous fiscal year, creating challenges for some colleges despite the university’s overall research growth.

Bendapudi also discussed the university’s newly established Office of Student Success, which aims to improve coordination among departments and make academic and support resources easier for students to access.

“Student success is my North Star,” Bendapudi said.

The meeting concluded with the reelection of David Kleppinger as chair and Rick Sokolov as vice chair of the Board of Trustees. Both were elected by acclamation without opposition.

Kleppinger said the upcoming year will be his final year serving as board chair and acknowledged the difficult decision facing the university as it continues implementing its long-term strategic plans.

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