2025-26 State Budget
Telephone Town Hall - Budget Victories - November 18, 2025

Budget Victories

November 18, 2025

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:

N

The creation of a new earned income tax credit for families (‘Working Pennsylvanians Tax Credit’)

N

A new childcare recruitment and retention initiative to help address the childcare crisis

N

A funding increase for direct care workers who help take care of our family members

N

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:

N

A 2nd year of funding for Adequacy & Equity ($526M) in response to the Commonwealth Court decision declaring our school funding system unconstitutional

N

Additional funding for school districts that don’t have an adequacy gap to ensure fairness in resource allocation

N

A $40M increase in special education funding

N

Cyber-Charter School funding reform that will save school districts approximately $175M annually

N

Funding for structured literacy programs

N

$125M for school facilities improvements

N

$100M for school safety and mental health

N

Funding increases for Pre-K Counts and Early Intervention

N

Increased funding for PHEAA’s State Grant Program

N

A $10M increase for Student Teacher Stipends (PHEAA)

N

$7.5M increase for Grow PA Scholarships (PHEAA)

Safety

Democrats delivered:

N

$61M for the PCCD Violence Intervention & Prevention Program to provide targeted grants to reduce violent crime and gun violence in our communities

N

$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

N

Additional funding for new PA State Police Cadet classes

N

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:

N

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

N

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
N

Additional improvements to the speed of the permitting process for infrastructure projects that impact the environment

Working Pennsylvanians Tax Credit

Budget Address

On Tuesday, February 4, 2025, Governor Shapiro delivered his 2025-26 budget address, presenting his plan for the fiscal year.

2025-26 Budget Hearings

Budget News