2025-26 Budget Highlights
While the budget is long overdue, the final product reflects Democratic priorities that will help struggling families, protect PA’s most vulnerable residents, strengthen our economy, improve our public schools, and make our communities safer.
- Support working families, fund education, keep communities safe.
- NO NEW TAXES.
- $193 MILLION for a BRAND NEW Working Pennsylvanians Tax Credit (Family Earned Income Tax Credit)
- Putting money back in the pockets of working Pennsylvanians.
- $526M additional funding for education to fulfill Pennsylvania’s court ordered obligation to adequately and constitutionally fund our public schools.
- $175M in school district SAVINGS from cyber charter funding reform.
- $40M increase for special education fund.
- $125M for school facilities improvements.
- $100M for school safety and mental health.
- $30M for student teacher stipends.
- $25M for childcare retention and recruitment.
- $21M funding increase for direct care workers.
- $10M funding increase to provide home and community-based services to older Pennsylvanians (PennCARE).
- $11M funding increase for State Food Purchase Program and Farmers’ Market Coupons.
- $50M for special events coming to Pennsylvania (including America250, the World Cup, the NFL Draft, and the MLB All-Star game.)
Affordability
This budget provides some relief to those struggling Pennsylvanians through:
The creation of a new earned income tax credit for families (‘Working Pennsylvanians Tax Credit’)
A new childcare recruitment and retention initiative to help address the childcare crisis
A funding increase for direct care workers who help take care of our family members
Increases to the State Food Purchase Program and Farmers Market Coupons Program to ensure those who are struggling with hunger and food insecurity due to the suspension of SNAP benefits can turn to our food banks and pantries with confidence
Education
Democrats secured:
A 2nd year of funding for Adequacy & Equity ($526M) in response to the Commonwealth Court decision declaring our school funding system unconstitutional
Additional funding for school districts that don’t have an adequacy gap to ensure fairness in resource allocation
A $40M increase in special education funding
Cyber-Charter School funding reform that will save school districts approximately $175M annually
Funding for structured literacy programs
$125M for school facilities improvements
$100M for school safety and mental health
Funding increases for Pre-K Counts and Early Intervention
Increased funding for PHEAA’s State Grant Program
A $10M increase for Student Teacher Stipends (PHEAA)
$7.5M increase for Grow PA Scholarships (PHEAA)
Safety
Democrats delivered:
$61M for the PCCD Violence Intervention & Prevention Program to provide targeted grants to reduce violent crime and gun violence in our communities
$10M for the Nonprofit Security Grant Program to ensure our nonprofits that are susceptible to attack based on hate and bigotry have resources to protect themselves and their property
Additional funding for new PA State Police Cadet classes
Increased funding of the PA Attorney General to combat gun and drug crime, human trafficking, and organized retail theft in our communities
Economic Prosperity
Democrats secured:
A 2nd year of funding for Adequacy & $10M for Agricultural Innovation Development to assist our farmers ($526M) in response to the Commonwealth Court decision declaring our school funding system unconstitutional
The Department of Community and Economic Development received several allocations to continue to make targeted investments to create jobs and attract business to PA. Funding included:
- $8.8M BusinessPA, a NEW program focused on attracting and retaining businesses in PA
- $20M Main Street Matters
- $20M Historically Disadvantaged Business Assistance
- $13M Manufacturing PA, a program that provides training and workforce development opportunities supporting the manufacturing industry
- $2.5M Local Government Emergency Housing Supports
Additional improvements to the speed of the permitting process for infrastructure projects that impact the environment
Budget Address
On Tuesday, February 4, 2025, Governor Shapiro delivered his 2025-26 budget address, presenting his plan for the fiscal year.
Governor Shapiro’s 2025-26 Budget Address as Prepared for Delivery
Budget Documents
2025-26 Proposed Budget
(Introduced by Governor Josh Shapiro, February 4, 2025)
2025-26 Governor’s Executive Budget (PDF)
2025-26 Proposed Budget Line-Item Appropriation (PDF)
2025-26 Proposed Budget Slide Presentation (PDF)
2025-26 Proposed Budget Legislation
Governor’s Proposed Budget 2025-26 – Senate Democratic Appropriations Committee (PDF)
2025-26 Budget Hearings
Budget News & Video
Senator Vincent Hughes on the Senate Passage of Pennsylvania’s 25/26 Budget: ‘We Delivered on Affordability’
Harrisburg, PA – November 12, 2025 – Today, Pennsylvania Senate and House lawmakers passed a $50.1B budget for the 25-26 fiscal year. Senator Vincent Hughes, Senate Democratic Appropriations Chair, shared the following statement: “While this process took much longer...
Responding to an Unserious, Republican Budget Exercise
PA Senate Democrats Share Statement on ‘Unserious’ Budget Exercise from Senate Republicans
Harrisburg, PA – October 21, 2025 – Today, the Pennsylvania Senate Democratic Caucus issued a statement following more budget delays that were led by Senate Republicans. “It is deeply frustrating to see Senate Republicans waste more time instead of coming to the table...
Senate Republicans Need to Come Back to Work
Senate Democrats are ready to pass the Pennsylvania budget and end the impasseWhat to Know Pennsylvania’s budget is over 100 days late The PA House sent a budget to the Senate, for the second time, last week But PA Senate Republicans decided to block a vote by going...
Senate Democrats Send Letter to Senate Republicans Calling for Immediate Passage of Bipartisan Budget Bill SB 160
HARRISBURG, PA − October 14, 2025 − Now that the Senate Republicans’ Budget Impasse has gone on for 106 days and counting, all twenty three members of the Pennsylvania Senate Democratic Caucus signed onto a letter urging Senate Republicans to call the Senate back...
Senate Democratic Leader Jay Costa, Democratic Appropriations Chair Vincent Hughes Urge Senate Republicans to Return to Negotiations as House Votes Down Unserious Budget and Transit Bills
HARRISBURG, PA – August 13, 2025 – Today, the House Rules Committee and the House Appropriations Committee voted down HB 257 and SB 160, respectively. Passed in the Senate yesterday evening, these bills represented unserious and unagreed-to budget proposals that were...





