Harrisburg, PA – Yesterday, Governor Josh Shapiro signed into law the 2025-26 budget and delivered real results for the people of Pennsylvania — building on two years of progress, tackling Pennsylvania’s most pressing challenges, and continuing to fuel the Commonwealth’s rise.
Throughout months of negotiations, Governor Shapiro stood up for Pennsylvanians and stayed at the table to secure a budget that solves problems, delivers results, and keeps the Commonwealth moving forward. The $50.1 billion budget is balanced, cuts taxes, and maintains nearly $8 billion in the Rainy Day Fund at the end of this fiscal year. It also makes historic reforms to address long-standing challenges and make Pennsylvania more competitive for workers and businesses.
With this budget, Governor Shapiro and elected leaders are sending a clear message: Pennsylvania is on the rise — and by working together, we will keep building a stronger, fairer, and more competitive Commonwealth for all. Once again, Governor Shapiro showed how to get stuff done.
Read the Governor’s remarks as prepared here, or watch the Governor’s remarks here.
Here’s what community leaders across Pennsylvania are saying about the 2025-26 budget:
Deborah Gordon Klehr, Executive Director of the Education Law Center – PA: “Lawmakers’ five-month delay in passing this year’s budget left schools, educators, and families in unnecessary limbo and resulted in avoidable harm. But with this budget, lawmakers affirmed that the Commonwealth remains on the path toward a fully and fairly funded public education system. This is another step forward — one that must be followed by continued commitment and sustained investment until every student, in every community, has the resources they need to learn and thrive.”
Dan Urevick-Ackelsberg, Senior Attorney at the Public Interest Law Center: “The era of one-off, ad hoc education budgets is over. This budget shows bipartisan consensus that the march to constitutional school funding is not optional. It took too long, but we moved one year closer to a system that will transform lives.”
Laura Boyce, Executive Director of Teach Plus PA: “A competitive economy begins with a great public education system — and we know both from research and from conversations with Pennsylvania students, families, and teachers that a great education system requires adequate funding, a strong and stable educator workforce, and evidence-based reading instruction from well-trained teachers. We applaud Governor Shapiro and legislative leaders for ensuring all these priorities are included in the FY25-26 budget, as we know they will benefit Pennsylvania students and our commonwealth as a whole.”
PA Schools Work: “This budget includes transformational funding to keep our public schools operating with another critical year of adequacy funding directed to the schools most affected by decades of underfunding, as directed by the Commonwealth Court. For two straight years, a bipartisan commitment to adequacy signals that lawmakers have made this a non-negotiable priority until full constitutional compliance is achieved – that represents progress and integrity…The inclusion of cyber charter reform will help alleviate the financial burden on school districts that have been overpaying cyber charter schools and will ensure that taxpayer dollars are spent more effectively and equitably. PA Schools Work thanks Governor Shapiro for his continued support of full and fair public education funding and applauds the House and Senate leadership for reaching an agreement that puts students first. PA Schools Work remains committed to working alongside lawmakers, educators, families, and communities to ensure Pennsylvania’s public schools receive the sustained investment necessary to prepare all students for success.”
Christopher T. Dormer, Superintendent of Norristown Area School District: “[The new budget] eases months of anxiety related to both our daily operations and to the implementation of our multi-year facilities master plan. As one of the most historically and chronically underfunded school districts in the Commonwealth, the full investment of adequacy and tax equity supplements this year will have a meaningful impact for the students, families, and staff of our district.”
Luke Bernstein, Pennsylvania Chamber of Business and Industry President and CEO: “This budget agreement contains several major victories the business community has long fought to achieve that will enhance our state’s overall economic competitiveness. Meaningful permitting reform is a huge step in the right direction and builds upon last year’s success, while exiting the Regional Greenhouse Gas Initiative (RGGI) will provide much-needed clarity and encourage energy development and investment. This represents important progress for Pennsylvania. We also applaud the continuation of additional pro-growth tax provisions, including maintaining the phasedown of Pennsylvania’s corporate net income tax and the gradual increase of net operating loss deduction limits, as well as key investments to support workforce development.”
Pennsylvania AFL-CIO President Angela Ferritto and Secretary-Treasurer Maurice Cobb: “The budget will deliver a long overdue pay increase for home health care workers, a hard-fought win for those workers…The investment made in the child care sector will help address staffing issues and give those workers the respect they deserve, while supporting working families who are impacted by the child care crisis. We are pleased to see investments in public education, bringing us closer to closing the funding gap that the Supreme Court ruled unjust. The increase in funding for pre-K is a win for working families across PA.”
Deanna Weaver, Director of Victim/Witness Services in the Lancaster County District Attorney’s Office: “The Victims Compensation Assistance Program (VCAP) is an essential resource that enables us to help victims with one of the most widespread effects of crime — financial loss. In most cases, whether DUI, burglary, or homicide, people’s lives are impacted by loss of earnings, medical or counseling bills, as well as funeral expenses and relocation in the more serious crimes. As victim advocates, we cannot change what has happened, but ultimately, we hope to help people incorporate what has happened to them into their life story as they begin to heal. But it’s difficult for this type of healing to occur if victims cannot pay their bills. They cannot make their recovery the focus if they are worried about losing their housing or how they are going to feed their family. VCAP can alleviate some of the financial strain and allow victims to worry less about financial stress and shift the focus to the work of healing. We are thankful to the Shapiro-Davis Administration for their continued support for crime victims and the critical lifeline that is VCAP.”
The Bucks Mont Collaborative: “We’re grateful PA leaders reached a budget deal — and even more grateful for the advocates who helped make it happen. They showed up, spoke out, and made a real difference. We're proud to be part of this network of changemakers!”
Adam Garber, Executive Director of CeaseFirePA: “An ounce of prevention is worth a pound of cure, and this budget proves it. Pennsylvania’s huge investment in community violence prevention will save up to over $250 million for the state by reducing the human and economic costs of gun violence. This historic funding means more interrupters on the ground, more reentry programs, and more neighborhoods freed from the trauma of gun violence. Thanks to the determination of advocates, survivors, community leaders, and public safety champions, lawmakers and Governor Shapiro have put another downpayment on Pennsylvania free from gun violence. Together, we are showing that bipartisan solutions to end gun violence are possible, and we are committed to building on this progress until every community can thrive in safety.”
Nathan Brant, CEO of the Pennsylvania State Alliance of YMCAs: “Every child deserves a safe, enriching place to go beyond school and home. Thanks to state funding through BOOST, YMCAs across Pennsylvania are able to provide thousands of youth with welcoming spaces where they can learn, grow, and thrive. We’ve already seen how these programs make a lasting difference — helping young people build confidence, improve academic performance, develop leadership skills, and form positive relationships that set them on a path to success in school and in life.”
Leah Spangler, EdD, President & CEO of The Learning Lamp & Ignite Education Solutions: “Child care programs across Pennsylvania are struggling to hire staff. This investment of $25 million for child care wages is a step in the right direction. Without child care, parents cannot go to work. We applaud Governor Josh Shapiro, Lieutenant Governor Austin Davis, and the legislature for including child care staff recruitment and retention dollars in the final budget. This will help programs like The Learning Lamp stabilize staff, enabling us to support more working parents.”
Emily Neff, Director of Public Policy for Trying Together: “The establishment of a new line item focused on child care teachers is a significant milestone for advancing early care and education in Pennsylvania. The early childhood field feels valued and inspired to see themselves as a priority in the budget. This investment will help keep teachers in the classroom so working families can access care and children can experience high-quality early learning opportunities.”
Jeani Garcia, Promise Neighborhoods: “The dollars that go into violence prevention pay off as lives saved, families spared, and communities kept whole. On behalf of my organization and the many other CVI programs across the state, I want to thank the General Assembly for this investment in our lives. In a budget that was clearly a difficult process with many hard funding decisions, they ultimately put money where it matters most.”
Paul Abernathy, Neighborhood Resilience Project in Pittsburgh: “Investing in the safety of our communities will undoubtedly lead to a healthier Pennsylvania in which no neighborhoods are forsaken. The numbers show the decline in violence, but what they can’t adequately convey is the change in how we live, the families that feel safer, the children that grow up without firsthand experiences of gun violence. We are all better, safer, and healthier because of this program.”
Here’s what elected leaders from across the Commonwealth are saying about the 2025-26 budget:
Speaker Joanna McClinton, PA’s 191st House District: “First, the budget continues Pennsylvania’s commitment to equitable school funding for districts like William Penn and Philadelphia. This plan also provides relief to Pennsylvania families struggling to pay their bills as costs climb under the Trump Administration’s economic policies. Our plan puts Pennsylvanians first by offering working families a 10 percent tax credit when filing their state taxes — savings they can use to pay for child care, food, or any other household expense. Finally, this budget continues to strengthen public safety with an increase for violence prevention grants and by renewing funding for BOOST — or the Building Opportunity through Out of School Time program, and for school safety and security grants.”
House Republican Leader Jesse Topper, PA’s 78th House District: “Overall, this is not just a budget for this fiscal year. This budget contains transformative policy that is really about the future of this Commonwealth."
Senate Democratic Leader Jay Costa, PA’s 43rd Senatorial District: “This plan directly addresses many of the challenges facing Pennsylvania’s families: rising costs, expensive care, and inequitably funded education. I am especially proud of the Earned Income Tax Credit, which puts money directly into the pockets of those trying to make ends meet. While this was a lengthy negotiation process, it yielded a responsible deal that positions Pennsylvania as a model for a government that works for working people. This budget not only meets many of our immediate needs of today, but it also makes key investments from which all Pennsylvanians will benefit for many years to come.”
Senator Vincent Hughes, PA’s 7th Senatorial District: “This budget includes a new tax credit that will impact almost one million Pennsylvanians. We’ve seen costs go up across the board and yet our federal government chooses to deny the affordability crisis Pennsylvanians and Americans are facing. This tax credit will provide some relief to hard working people who are getting crushed by high costs. We will also continue to deliver on our Commonwealth Court ordered obligation to adequately and constitutionally fund our public schools. Fixing Pennsylvania’s broken school funding system is one of the legislature’s most important responsibilities. I’m proud Democrats remain committed to fighting for that funding. Throughout budget negotiations, Democrats never stopped advocating for students, seniors, and working families. Because of that, we were able to deliver a responsible and balanced budget that meets the moment for Pennsylvanians.”
Senator Christine Tartaglione, PA’s 2nd Senatorial District: “This budget supports affordability, job growth, public safety, and education, without raising taxes, and even provides tax relief for nearly one million residents. We’ve worked tirelessly to craft a budget that invests in people, not politics. It funds our public schools fairly and constitutionally, strengthens child care and direct care workforces, and expands food access and human services for families feeling the strain of rising costs and federal uncertainty. That includes a desperately needed paycheck of at least $450 to child care workers who are critical to supporting the children and families I represent and an additional $21M in state funding that will go directly into the pockets of participant-directed homecare workers.”
Senator Steve Santarsiero, PA’s 10th Senatorial District: “This budget represents a compromise that still delivers on our key caucus priorities: affordability, education, public safety, and the economy. I’m happy to report that this budget secures a major win for working families with our new Working Pennsylvanians Tax Credit. It provides additional funding for child care and for programs to help our food banks as folks are struggling with the suspension of SNAP benefits by the Trump Administration. Affordability for Pennsylvanians is the throughline of this budget.”
Senator Maria Collett, PA’s 12th Senatorial District: “I’m proud that this budget — while the product of compromise — delivers historic wins for everyday Pennsylvanians. For the first time, we’ve created the Working Pennsylvanians Tax Credit, a $193 million investment that means up to $805 extra in their pockets for nearly one million hardworking families. That’s real relief—for groceries, for gas, for keeping the lights on.”
Senator Tim Kearney, PA’s 26th Senatorial District: “After four difficult months without a budget, cooler heads finally prevailed to deliver an agreement that moves Pennsylvania forward. While a legislative compromise like this in a divided government will always include disappointing trade-offs, this budget ultimately advances progress for our communities that Democrats have been fighting for and delivering on in recent years. This budget takes another step towards a fair education system for all, providing $671M in new funding for public schools, and creating $175M in cost savings by finally making meaningful reforms to our broken cyber charter funding law. We also preserved $125M in investment in school building repair programs and the Solar for Schools program so that more schools can save taxpayers money on utility costs. Our overburdened child care centers will get a $25M boost to recruiting and retaining more workers to help expand capacity, and student-teachers will have access to $30M in stipends to help them through otherwise unpaid service in our public schools.”
Senator Wayne Fontana, PA’s 42nd Senatorial District: “This budget continues our historic commitment in K-12 education, addresses the food insecurity and hunger worsened by the policies of the Trump Administration, and invests in proven public safety initiatives, all without raising taxes and even provides a tax cut to working families. This final product is a good budget for the people of Pennsylvania and I proudly voted for it today.”
Senator Dan Laughlin, PA’s 49th Senatorial District: “This budget makes smart, sustainable investments in our people, from students and working parents to seniors who deserve to age with dignity. It’s a plan that respects taxpayers, supports growth and keeps Pennsylvania moving forward.”
Senator Nick Miller: “A budget that delivers: no tax increase, historic funding for public schools, higher wages for workers, and investments that create jobs across Pennsylvania. This continues the ongoing work to make Pennsylvania a great place to live, work, and explore.”
Representative Abigail Salisbury, PA’s 34th House District: “It was critically important that we deliver on our constitutional duty to fairly fund our public schools, and the new budget does that. The new spending plan also ensures that our schools see the benefits of savings achieved through cyber charter reform. Those savings will mean additional funding of $12 million to the Pittsburgh School District, more than $1.2 million to Woodland Hills School District, and nearly $450,000 to Wilkinsburg School District.”
Representative Robert Matzie, PA’s 16th House District: “The new budget delivers on our constitutional obligation to fairly fund our schools, adding nearly $600 million to help us continue leveling the playing field for students in less-affluent ZIP codes and easing the property tax burden on residents,” Matzie said. “All of our school districts will benefit from those block grants… The new plan invests taxpayer dollars wisely, in ways that will help people thrive, and it does so without adding any new taxes or tapping into the state’s Rainy Day Fund. They are strategic investments I believe will move us in the right direction.”
Representative Mike Schlossberg, PA’s 132nd House District: “This budget represents our continued efforts to ensure fair funding for Parkland and Allentown schools, invests in critically needed mental health care, reduces costs for Pennsylvanians and gets stuff done in Pennsylvania. We continue our historic work to address funding for our local school districts so they can make investments in the future of our students. The progress our schools make for students will only continue to strengthen our region as a great place to call home, work and do business.”
Philadelphia Mayor Cherelle L. Parker: "Philadelphia is safer and stronger today with the passage of our Commonwealth's FY2026 budget. It includes significant new investments for our seniors, working families, and our schools and children. There is $191 million more for the School District of Philadelphia, $20 million for school construction, and $40 million in investment for 2026 events in Philadelphia. This budget includes more money for affordable housing, continued investments in violence prevention, child care workers, Free Library funding, and a Working Pennsylvanians tax credit. All of these investments are welcome news. I want to thank Governor Josh Shapiro, Speaker Joanna McClinton, Majority Leader Matt Bradford, Appropriations Chairmen Jordan Harris and Vincent Hughes, our Republican Senate and House leadership, and particularly Senator Joe Picozzi, who worked across the aisle to deliver for our City, and the entire Philadelphia delegation for their tireless advocacy to meeting the needs of every Philadelphian."
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