What is in the 2026-27 budget?
This budget builds on Pennsylvania’s progress under Governor Shapiro with key investments, such as:
- $11.85 billion in support for Pennsylvania students – representing a nearly 35 percent increase compared to before Governor Shapiro took office.
- $565 million increase through the bipartisan adequacy and tax equity formula, a $58 million increase for Basic Education Funding, and a $55 million increase for Special Education Funding.
- $10 million increase funding for career and technical education (CTE), bringing the total spent on workforce development initiatives to $193 million – a 60 percent increase compared to before Governor Shapiro took office.
- $5 million for a total of $30 million to address critical workforce shortages, increasing the amount of funding available for the Child Care Staff Retention and Recruitment Program
- $10 million, for a total of $40 million for the Student Teacher Stipend Program.
- $125 million to create the Innovate in PA 2.0 program to provide capital for promising startups, fund clinical trials for the life sciences, and enhance the Commonwealth’s innovation network to help these companies succeed.
- Funding for another four cadet classes of Pennsylvania State Police Troopers and delivering in full on the Governor’s promise to fund 2,000 more cops and state troopers on our streets.
Read the budget breakdown
What we're doing together is working. As a result of the investments we've made:
- Pennsylvania has increased funding for our schools by more than $3 billion since Governor Shapiro took office.
- Graduation rates, attendance rates, and test scores are up across the Commonwealth.
- Nearly 800 schools have expanded mental health services and supports for students.
- Universal free breakfast is helping ensure every student starts the school day ready to learn.
Building on that progress, the 2026-27 budget includes:
- $565 million in adequacy funding to support school districts across the Commonwealth and $58 million increase for Basic Education Funding.
- $55 million increase for Special Education funding.
- $125 million for school infrastructure improvements, including $25 million for Solar for Schools.
- $100 million for school mental health and safety.
- Universal free breakfast and $3 million for free menstrual hygiene products.
- Requiring 30 minutes of daily recess for students K-5.
- $10 million through the new performance-based funding formula for Penn State, Pitt, and Temple and a $5.9 million increase for PHEAA State Grants.
- $10 million increase for Grow PA Scholarships.
- $2 million for teacher professional development.
This budget builds on three years of work to expand vo-tech, CTE, and apprenticeship programs, including a $10 million increase for CTE programs, for $193 million in total annual workforce development funding.
Governor Shapiro has also taken significant steps to close workforce gaps in critical fields such as education, child care, and health care. This budget builds on this progress by funding:
- A $5 million increase for the Child Care Staff Retention and Recruitment Program Governor Shapiro created last year, for a total of $30 million in funding, providing at least $540 per employeeannually to licensed Child Care Works providers – an increase on last year’s initial estimate by about $100 per employee.
- A $3.75 million increase for Pre-K Counts rates to help providers raise wages and stabilize the early educator workforce.
- A $10 million increase for the Student Teacher Stipend Program, bringing total support to $40 million annually. Administered through PHEAA, these stipends allow aspiring teachers to earn income while completing their full-time classroom training.
- $3 million to create an optometrist training program.
- A $2.5 million investment in the Nurse Shortage Assistance Program to strengthen Pennsylvania's health care workforce by providing tuition assistance to young nurses and setting them up with a hospital placement.
Pennsylvania’s agriculture sector is the backbone of the Commonwealth, with more than 48,800 farms contributing over $132 billion a year to the economy and supporting nearly 600,000 jobs in Pennsylvania. Governor Shapiro has prioritized strengthening both agriculture and food security — helping farmers, families, and communities thrive. The 2026-27 budget continues this work with:
- $10 million to create Fruit Grower Freeze Impact Grants, supporting farmers who were impacted by this year’s devastating spring freeze — in addition to USDA streamlined assistance secured after the Shapiro Administration called for federal support in May.
- $5 million from the existing Highly Pathogenic Avian Influenza (HPAI) fund to expand education for farmers working to combat the spread of HPAI.
- $10 million to continue the Agricultural Innovation Grant Program to drive innovation in Pennsylvania agriculture.
- $13.8 million to fully fund the Pennsylvania Farm Bill to support business planning, infrastructure, and workforce development.
This budget also invests $7 million to modernize Pennsylvania’s Supplemental Nutrition Assistance Program (SNAP), upgrading SNAP EBT cards from magnetic stripes to chip-enabled cards. Modernizing the Commonwealth’s SNAP EBT cards will strengthen food security in Pennsylvania by using technology to randomize transaction numbers, protecting SNAP recipients against fraud and theft and preventing benefits loss.
This budget continues Governor Shapiro's commitment to making life more affordable by cutting taxes and putting money back in Pennsylvanians' pockets.
Since taking office, Governor Shapiro has cut taxes ten times for families, seniors, and small businesses.
This budget continues to cut costs for Pennsylvanians, including:
- The Working Pennsylvanians Tax Credit, providing $216.7 million in tax relief to more than 876,000 working Pennsylvanians.
- The expanded Property Tax/Rent Rebate Program, delivering more than $1 billion through 1.84 million rebates over four years.
- The expanded Child and Dependent Care Enhancement Tax Credit, providing more than $444.5 million through nearly 858,500 tax credits over four years.
- Continuing the scheduled reduction of the Corporate Net Income Tax, saving Pennsylvania businesses more than $2.9 billion.
- Providing long-overdue cost-of-living adjustments (COLAs) for pre-Act 9 retirees, including retired teachers, firefighters, and law enforcement officers.
Since taking office, the Shapiro Administration has established a Behavioral Health Council to increase accessibility of behavioral health services across the Commonwealth, delivered $40 million in new funding for counties — the first increase since 2008 — and helped nearly 800 schools expand mental health services, including the hiring of more than 200 mental health counselors. The 2026–27 budget strengthens that system with:
- $10 million in dedicated state funding for the 988 crisis hotline. Last year, the Commonwealth’s 14 crisis call centers handled more than 145,000 calls. Additional funding supports 211 Communication Services, ensuring Pennsylvanians can connect to critical resources in moments of need.
- $5 million for mental health walk-in centers to provide timely and accessible options for Pennsylvanians who need support outside of regular business hours.
Governor Shapiro also secured a $12 million increase for rape crisis centers across the Commonwealth in this year’s budget – the largest increase in history and nearly doubling their overall support.
Driving innovation and economic growth: This budget continues Governor Shapiro's work to position Pennsylvania as the Northeast's top state for business by:
- Investing $125 million to create the Innovate in PA 2.0 program to support startups, life sciences, and innovation.
- Increasing funding for the Historically Disadvantaged Business Program by $3.75 million.
- Maintaining $20 million for Main Street Matters to strengthen commercial corridors across Pennsylvania.
Since taking office, Governor Shapiro has attracted more than $41 billion in private-sector investment and helped create more than 24,000 jobs across the Commonwealth.
Making government work better: This budget also continues investments in government efficiency through the Commonwealth's Space Optimization and Utilization Project (SOUP), CODE PA, and cybersecurity improvements to modernize services, improve customer experience, and save taxpayer dollars.
Protecting Older Pennsylvanians: Under Governor Shapiro's leadership, Pennsylvania created its first-ever strategic plan for aging services, Aging Our Way, PA, and launched the Comprehensive Aging Performance Evaluation (CAPE) to strengthen oversight of Area Agencies on Aging.
Building on that progress, the 2026-27 budget includes:
- $1 million increase for CAPE.
- $1 million increase for Aging Our Way, PA.
- Increased support for nursing homes by raising the minimum reimbursement rate.
Supporting the direct care workforce: This budget also continues funding for direct support professional wages, supporting workers who provide services to adults with physical disabilities and older adults.
Ensuring the State Police are equipped to protect our communities: This budget invests $16.2 million to support four additional Pennsylvania State Police cadet classes, continuing Governor Shapiro's commitment to putting more cops and troopers on the beat.
Reducing crime and gun violence: Under Governor Shapiro's leadership, violent crime has fallen across Pennsylvania, and this budget builds on that progress by:
- Continuing $62.1 million for the Violence Intervention and Prevention (VIP) Program.
- Continuing $11.5 million for the Building Opportunity through Out of School Time (BOOST) Program.
Protecting Pennsylvania's children and families: This budget also strengthens Pennsylvania's child welfare system by:
- Investing $658,000 to improve ChildLine staffing and training.
- Increasing county child welfare funding by $50 million to help protect children and support families.
Governor Shapiro has prioritized protecting Pennsylvania's natural resources and safeguarding Pennsylvanians' constitutional right to clean air and pure water.
Since taking office, the Administration has plugged more than 400 orphaned and abandoned wells—more than during the previous ten years combined.
Building on that progress, the 2026-27 budget:
- Authorizes a one-time $20 million transfer to the Hazardous Sites Cleanup Fund.
- Authorizes a one-time $19 million transfer to continue plugging abandoned oil and gas wells.