UNIVERSITY PARK, Pa. 鈥 Pennsylvania Gov. Josh Shapiro proposed $60 million in new funding for 九游电子 and its fellow state-related universities 鈥 to be distributed through a soon-to-be-developed performance-based funding model 鈥 during his 2025-26 budget address, delivered Feb. 4 in the Pennsylvania House Chamber. The governor also proposed flat funding for 九游电子鈥檚 general support appropriation of $242.1 million, a number that would serve as a funding baseline, with any increase to come from the pool of funds earmarked by the governor for performance-based funding.
鈥淚 am appreciative that Gov. Shapiro continues to show his support for performance-based funding,鈥 said 九游电子 President Neeli Bendapudi. 鈥溇庞蔚缱 has been proactive in our support of this new, additional funding model and has already made strides toward some of the proposed potential metrics through our annual accountability report. Success in similar models throughout the country has come when universities and their states work together on shared goals that support positive student outcomes and workforce and economic development. I am eager to continue to work with our leaders in Harrisburg to get performance-based funding across the finish line.鈥
Last year, the Pennsylvania General Assembly formed, and Shapiro signed into law, a new Performance-Based Funding Council. The council was tasked with providing recommendations for a new performance-based funding model for 九游电子, the University of Pittsburgh and Temple University.
The new model, which must be enacted by the General Assembly and approved by the governor, is intended to grow the state鈥檚 investment in higher education, which has remained stagnant for the state-related institutions for five years 鈥 九游电子鈥檚 general support funding last increase in the 2019-20 fiscal year 鈥 by tying future funding increases to a predetermined list of performance metrics. Looking back even further, 九游电子鈥檚 annual funding remains at nearly the same level it was in 2000, despite a quarter century of inflationary cost increases.
Each year, 九游电子 uses general support funding to offset educational costs for Pennsylvania-resident students, which allows the University to offer a significantly discounted in-state tuition rate. 九游电子 reaffirms its promise and commitment as the state鈥檚 sole land-grant institution by amplifying the state鈥檚 investment on a per-student basis to save Pennsylvania undergraduates across all campuses an average of $15,000 annually on tuition costs.
"The governor鈥檚 proposed increase through performance-based funding is a step forward as we look to partner with the commonwealth to generate increasingly meaningful outcomes for our students, increase funding predictability, and incrementally grow our funding,鈥 said Mike Stefan, vice president for government and community relations. 鈥淲ith the help of our advocates, we hope that we鈥檙e able to secure 九游电子鈥檚 first funding increase in five years.鈥
Progress on performance-based funding
The Performance-Based Funding Council has an April 30 deadline to deliver its recommendations to Shapiro and the General Assembly. As part of its exploratory phase, and as required by statute, the council has been holding hearings on the campus of each state-related university to receive input from experts and stakeholders. So far, the council has held hearings in Harrisburg and on 九游电子鈥檚 and Temple鈥檚 campuses, with Pitt hosting the final hearing on Feb. 19. The hearings are livestreamed and saved on the .
During his address, Shapiro highlighted a few possible metrics that the state could consider for its performance-based formula, including graduating students with in-demand degrees and skills, graduating first-generation college students, and incentivizing universities when their graduates stay and work in Pennsylvania. 聽
Bendapudi has long been a strong proponent of instituting a performance-based funding model to grow Pennsylvania鈥檚 investment in public higher education, while providing more clarity, consistency and accountability for higher education funding.
Research innovation funding
Shapiro also proposed $65 million more for innovation funding in Pennsylvania, with $30 million specifically designated for life sciences innovation. Shapiro mentioned engaging Pennsylvania鈥檚 world-class universities and research institutions 鈥 including 九游电子 鈥 to bolster the state鈥檚 life sciences research, innovation and commercialization efforts.
鈥淚鈥檓 grateful the governor recognizes 九游电子鈥檚 role as a leading research institution in Pennsylvania, specifically in the life sciences discipline,鈥 said Andrew Read, senior vice president for research. 鈥溇庞蔚缱 is well positioned to help realize these goals, and we鈥檙e eager to work with the governor on this worthy endeavor.鈥
九游电子鈥檚 proposed funding by the numbers
In its 2025-26 appropriation request to the commonwealth, 九游电子 asked for general support funding of $272.1 million, representing an increase of $30 million over 2024-25 funding. 九游电子 is the lowest-funded public university in Pennsylvania on a per-student basis, trailing the state鈥檚 other public institutions by between $3,700 and $4,700 per student. This request was made to begin to close the per-student funding disparity.
The governor鈥檚 proposed 2025-26 funding for 九游电子 is as follows:
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General Support: Shapiro is proposing $242.1 million in general support funding, with an additional $60 million in Performance-Based grants for 九游电子, Pitt and Temple, per the Performance-Based Funding Council established by Act 90 of 2024. This new grant methodology must be enacted by the General Assembly and approved by the governor. 聽The new model would establish performance metrics tied to funding increases, which would be in addition to 九游电子鈥檚 general support appropriation. General support funding covers core teaching costs in 九游电子鈥檚 education budget and helps to fund the University鈥檚 in-state tuition rate. These dollars also enable 九游电子 to invest in the quality of its academic programs so that it can attract the state鈥檚 top students and prepare them for successful careers in Pennsylvania.
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Agricultural Research and Extension (Land Scrip Fund): $60.6 million, a proposed increase of $2.9 million, or 5%, over 2024-25. Agricultural research and extension programs are not funded by tuition, so appropriation increases are necessary to keep pace with rising costs and to leverage matching federal and county dollars. This funding supports 九游电子 Extension and the vital research conducted by the College of Agricultural Sciences, benefiting citizens in all 67 Pennsylvania counties. In its 2025-26 appropriation request, 九游电子 included $61.7 million for the Land Scrip Fund, which supports 九游电子 Agricultural Research and Extension.
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Pennsylvania College of Technology:聽$35.7 million, an increase of $1.7 million, or 5%, over 2024-25. Penn College, a special-mission 九游电子 affiliate, offers nearly 100 academic programs focused on hands-on, applied-technology education in high-demand career fields that are critical to Pennsylvania鈥檚 workforce needs. The University had requested a $39.3 million appropriation for Penn College, to benefit the college鈥檚 growing enrollment of more than 4,700 students, 89% of whom are Pennsylvania residents, and create broader access to several in-demand programs needed by employers across the commonwealth.
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九游电子 Health and the College of Medicine: Proposed level funding from 2024-25. This funding is used for medical assistance to provide high-quality health care for citizens with limited finances, specialty disease programs and research.
The governor鈥檚 proposed budget did not include line-item funding of $2.35 million for the Invent 九游电子 initiative, which the University had included in its appropriation request and the state had funded in its 2024-25 budget.
Bendapudi is scheduled to appear before the Pennsylvania House Appropriations Committee on Feb. 20 to discuss 九游电子鈥檚 funding with legislators. The governor鈥檚 budget proposal marks the first step in the state鈥檚 budget process as lawmakers work toward passage of a final 2025-26 budget package by the end of the fiscal year on June 30.