Penn State, Temple University, and the University of Pittsburgh will split a $10 million performance-based funding pool following passage of Pennsylvania’s 2026-27 budget compromise. Gov. Josh Shapiro had requested a larger $30 million allocation, but the final pool is smaller. The state’s model will tie allocations to metrics including enrollment of Pennsylvania students, graduation outcomes, issuance of high-demand degrees, and affordability. While the three institutions’ base appropriations remain level since at least 2019, the new performance-based pot adds incremental funding intended to reward measurable outcomes. Penn State President Neeli Bendapudi said the allocation aligns with the university’s mission and values. Pitt and Temple also projected additional support, though lower-than-expected amounts could affect internal planning for how performance metrics translate to dollars. For Pennsylvania public and state-related institutions, the decision signals both increased accountability expectations and continuing constraints on overall state funding growth.