According to the legislation, it aims to give "support for the transgender community" and also reinforce efforts to "create a safe and inclusive environment for transgender students at the university.
The legislation states those attempting to change their name for reasons unrelated to a divorce are usually required to pay between $150 and $250.
Old Main building in the main campus of Pennsylvania State University, State College, Pennsylvania, USA (iStock)
"[T]his could mean a transgender student is prevented from changing their name to better actualize their identity," the bill states.
$3,000 will be allocated for the name change vouchers, according to the outlet.
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"The UPUA hereby charges the Department of Public Relations to disseminate this information through all proper channels and collaborate with the Office of Student Legal Services in future awareness campaigns regarding the vouchers," the bill states.
Fox News Digital has reached out to the student government and Penn State University for comment.