Penn State, Temple University, and the University of Pittsburgh are set to receive new performance-based state funding after Pennsylvania’s final budget package approved a $10 million pool tied to outcomes. The funding is separate from baseline appropriations, which remain flat for the three universities since 2019. Pennsylvania Gov. Josh Shapiro’s compromise budget included the performance funding pot, with allocations based on enrollment of Pennsylvania students and metrics including graduation rates, high-demand degree issuance, and affordability-related factors. Penn State and Pitt are expected to receive smaller shares than the governor sought. State leaders framed the model as a targeted investment in public higher education, while universities assessed the practical effects of funding decisions made within a relatively tight state appropriations environment.