Learn to Earn
Pennsylvania adopts performance-based funding for the first time, boosting Penn State’s appropriation.
The Pennsylvania General Assembly approved a 2026-27 state budget in July that could include more than $4 million in new performance-based funding for Penn State, marking the university’s first increase in state education funding since the 2019-20 fiscal year.
Penn State’s traditional general support appropriation will remain at $242.1 million, bringing its total 2026-27 education appropriation to more than $246 million. The performance-based funding comes from a new $10 million pool established by the General Assembly tying a portion of state education funding for Penn State, the University of Pittsburgh, and Temple University to student outcomes and institutional performance. Allocations are based on a formula that considers enrollment of in-state students—including full-time undergrads, Pell Grant recipients, and community college transfers—as well as graduation rates, production of high-demand degrees, and affordability.
Penn State President Neeli Bendapudi, a leading advocate for performance-based funding, expressed appreciation for the state making this funding model possible.
“This initial investment is an important first step that recognizes the essential role higher education plays in strengthening our commonwealth,” Bendapudi said. “The metrics at the heart of this model align closely with Penn State’s mission and values. We are proud to help students from every background earn degrees that prepare them for meaningful lives and careers here in Pennsylvania, while contributing to economic vitality across the state.”
Penn State’s complete 2026-27 state appropriation breaks down as follows:
- Performance-Based Funding: More than $4 million (anticipated), with the final allocation to be determined by the state’s performance-based funding formula.
- General Support: $242.1 million, level funding from 2025-26.
- Agricultural Research and Extension: $57.7 million, level funding from 2026-26.
- Pennsylvania College of Technology: $35.67 million, level funding from 2025-26.
- Penn State Health and the College of Medicine: Funding was maintained at the same level as in the 2025-26 budget and is a combination of state and federal dollars distributed by the Pennsylvania Department of Human Services.
- Invent Penn State: $2.35 million, which is level funding from 2025-26.
Research Reorganization
A strategic restructuring of Penn State’s research enterprise focuses on entrepreneurship and commercialization.
Penn State’s Office of the Senior Vice President for Research (OSVPR) is implementing a strategic reorganization designed to strengthen the university’s ability to drive research commercialization, community-engaged research, and statewide economic impact.
As part of the reorganization, the Office of Entrepreneurship and Commercialization is transitioning into complementary units focused on accelerating Penn State’s innovation ecosystem and expanding the university’s public impact mission. Concurrently, a new leadership role within Penn State Outreach will support statewide community-engaged research.
The new Research Ventures unit will focus on faculty-led research commercialization projects, while the Office of Entrepreneurship and Penn State Outreach’s community-engaged research initiatives will focus on projects headed by students and members of the public not affiliated with the university. The restructuring will expand and focus leadership capacity in two areas identified by President Neeli Bendapudi: accelerating the translation of research into local, national, and global commercial and societal impact, and strengthening the university’s engagement with communities, businesses, and regional economies across the state.
“Penn State’s research enterprise has tremendous potential to create impact far beyond the lab,” said Andrew Read, senior vice president for research. “This reorganization positions us to accelerate the commercialization of Penn State innovations while deepening engagement with communities, entrepreneurs, manufacturers, and partners across the commonwealth.”
Wolf Named Philanthropist of the Year
Jonathan Wolf ’81 H&HD was named Penn State’s 2026 Philanthropist of the Year. The award, which recognizes those who have demonstrated exceptional generosity in the promotion and support of the university, celebrates Wolf’s landmark gift to dramatically scale up resources for undergrads studying to become addiction and recovery professionals or enter the field of mental health services.
“[Jon’s] visionary gift empowers the university to train counselors and experts in addiction and recovery services, as well as to address a broad spectrum of biobehavioral health challenges,” said Penn State President Neeli Bendapudi. “Jon’s generosity helps deepen Penn State’s impact as a national leader meeting urgent workforce needs.”
Housed within the College of Education, Wolf’s endowment created a cohort of Wolf Scholars and funded scholarships and paid internship opportunities with frontline service providers. His gift will also bolster resources for administering certification programs and provide dedicated peer coaching and a specialized sequence of workshops for students.