The state’s proposed budget for the coming fiscal year includes $30 million in performance-based grants to be distributed among Pitt, Penn State and Temple, through a new state-related university performance fund.
General support appropriations, however, remain flat for Pitt, at $151.5 million, and Penn State, at $242.1 million.
The funding methodology for the performance-based grant was approved during the 2025-26 state legislative session but received no funding in the final state budget.
The formula considers in-state students at the state-related institutions in predetermined categories, including full-time undergraduates, Pell Grant recipients and community college transfers. It also takes into account each university’s performance based on goals for graduation rates, high-demand degree production, year-over-year improvement and affordability.
Jared Stonesifer, Pitt spokesman, said the university appreciates that the proposed budget includes $30 million for the state-related university performance fund.
“It underscores the critical role the University of Pittsburgh and the state-related universities play in driving Pennsylvania’s future,” he said. “We look forward to working with (Gov. Josh Shapiro’s) administration and the legislature to partner on a higher education plan that delivers results for Pennsylvania’s students, employers and communities.”
Funding the performance-based model would increase the state’s investment into the state-related universities for the first time since the 2019-20 school year. The General Assembly approved a 2% increase that year, according to Penn State.
The proposed budget also includes $3.98 million to Pitt for rural education outreach, which will go toward the Pitt-Bradford campus, Stonesifer said. He said the program is “a critical resource for McKean County and northwestern Pennsylvania.”
At Penn State, the proposal includes $57.7 million for agricultural research and extension; $2.35 million for Invent Penn State, a business initiative; and $35.7 million for the Pennsylvania College of Technology.
The figures are the same amounts the universities received in this year’s budget.
Penn State President Neeli Benadpudi is scheduled to appear before the state’s House Appropriations Committee on March 11 to discuss the university’s funding with legislators.
“Following last year’s successful effort to bring performance-based funding to fruition, I am encouraged by Gov. Shapiro’s proposal, which includes the funding for this new model that would allow the commonwealth and the state-related universities to focus on shared goals,” Bendapudi said in a statement.
“We are committed partners with the state and in this new funding model, as it would link future funding increases to metrics that support student success, college access and workforce readiness. We in turn would use this funding to fuel greater innovation, strengthen the economy and expand opportunity for students across Pennsylvania.”
