For the first time ever, this year’s appropriation also includes more than $2 million in new performance-based funding for Temple as well as a $500,000 allocation to Temple’s University College.

This weekend, Pennsylvania Gov. Josh Shapiro and the Pennsylvania General Assembly approved the 2026–2027 state budget, which includes a $158.2 million appropriation for Temple University. This year’s budget also includes more than $2 million in new performance-based funding for Temple as well as a $500,000 allocation to Temple’s University College. 

“This budget reflects a commitment to Pennsylvania’s students and affirms the essential role that public universities play in preparing the commonwealth’s future workforce. The addition of performance-based funding reinforces the connection between student achievement, attainment in high-priority fields, workforce development and economic growth,” said Temple President John Fry. “We are deeply grateful to Governor Shapiro for his leadership and to the General Assembly for its bipartisan support of a forward-looking model that advances accountability, student success and opportunity across the commonwealth. Temple is committed to delivering exceptional outcomes for our students and serving as a driving force for the commonwealth’s workforce development, research enterprise and economic vitality.” 

The introduction of performance-based funding comes after Temple, along with Penn State University and the University of Pittsburgh, spent more than a year serving on the Pennsylvania General Assembly’s Performance-based Funding Council. Together, the council, which also included representation from five voting members from state government, worked to develop a model for distributing performance-based funding to the commonwealth’s state-related universities, which it then formally submitted to Gov. Shapiro for approval in the spring of 2025. 

The performance-based funding model that has been adopted as part of this year’s budget ties a portion of state education funding for three of Pennsylvania’s state-related institutions (Temple, Penn State and Pitt) to student outcomes and institutional performance. Specific factors that are included in determining allocations include 

• total enrollment of Pennsylvania students—including full-time undergraduates, Pell Grant recipients and community college transfers; and
• outcome measures such as graduation rates and production of high-demand degrees and affordability. 

The focus on high-demand degree production aligns with Pennsylvania’s broader workforce development priorities, including the Grow PA Scholarship Grant Program, which identifies critical fields where the commonwealth has a demonstrated need for additional graduates. These priority areas include programs aligned with Pennsylvania’s workforce demands, such as healthcare, education, engineering, technology, agriculture and other high-need industries. By emphasizing degree completion in these areas, the Commonwealth is seeking to strengthen the pipeline of skilled graduates who can contribute to Pennsylvania’s economic growth and workforce needs. 

This year’s budget also included a one-time allocation of $500,000 for Temple’s University College and its bachelor of general studies program. Established in 2021, the program is designed to provide adult learners who have previously earned college credit with a seamless, one-of-a-kind path to finishing their undergraduate degree. 

“We designed this degree because we know that life happens and there are a number of factors that prevent students from achieving their goal of graduating,” said Vicki Lewis McGarvey, vice provost for University College. “It is exciting to see this important program recognized by the Commonwealth of Pennsylvania, and I am thankful for their support of both this program and our entire university.” 

The passing of the state budget is a significant milestone for Temple as Commonwealth support plays an essential role in helping keep tuition affordable for Pennsylvania students and their families. Through the appropriation, Temple provides every undergraduate Pennsylvania resident student with a tuition that is at least $16,000 lower than the out-of-state rates. 

“We are grateful to Governor Shapiro and the entire General Assembly for the continued vote of confidence that they give to Temple as well as our state-related peers,” said Brian Keech, vice president for government and community relations. “Temple’s mission is built on access, but we would never be able to achieve that mission without the Commonwealth’s support, as it is crucial in helping to keep Temple’s high-quality education affordable and accessible for Pennsylvania college students and their families.” 

The partnership between Temple and the Commonwealth goes back to 1965, when Temple first became a state-related institution. In the years since, it has thrived as a mutually beneficial relationship that has helped drive positive outcomes across the commonwealth.  

The impact of the collaboration can be seen through an economic impact study recently completed by Econsult Solutions Inc. According to the study, Temple’s total impact on Pennsylvania’s economy is $11.1 billion as the institution supports nearly 52,000 jobs—both directly and indirectly—with more than $4.6 billion in employee compensation.