Council approved the proposal with a 4-3 vote after rejecting it in December.
The Nittany Lions finished in the top 10 of the AP Top 25 poll for the third time in the last four seasons.
Kelly, a former walk-on who was placed on scholarship prior to the 2019 season, is the second Nittany Lion to enter the portal this offseason.
The younger Newton is a quarterback who recently entered his name into the NCAA's transfer portal after a strong three-season term with FCS Howard.
After a month of being ranked, the Nittany Lions have officially fallen out of the Top 25.
The event, titled "An Evening with Malcolm Gladwell," will begin at 6:30 p.m.