Pennsylvania Budget Agreement Reached

Governor Josh Shapiro and members of the General Assembly have agreed to a $50.1 billion budget for the 2025/26 Fiscal Year. 

This is $2.3 billion more than last year’s budget but less than the Governor’s $51.5 billion proposed budget. The budget includes a $105 million increase in basic education, $665 million for highway improvements, and $1 billion for highway maintenance.

For Human Services, the General Budget bill includes the following increases from 2024/25 to the 2025/26 budget:

• Medical Assistance – Capitation: +3.5%
• Medical Assistance – Fee For Service: +.4%
• Medical Assistance for Workers with Disabilities: +12.3%
• Medical Assistance – Transportation: +5.9%
• Medical Assistance – Long-Term Living: +4.7%
• Medical Assistance – Community Health Choices: +10.7%
• Long-Term Managed Care: +6.8%
• Intellectual Disabilities – Community Base Program: +4.4%
• Intellectual Disabilities – Intermediate Care Facilities: +2.9%
• Intellectual Disabilities – Community Waiver Program: +6.1%
• Autism Intervention Services: +12.9%
• Early Intervention: 7.1%

The following lines have been flatlined or cut between the 2024/25 and 2025/26 budgets:

• Behavioral Health Services: 0.0%
• Mental Health Services: -1.9%
• Intellectual Disabilities State Centers: -5.2%

Please find the entire 2025/26 Budget spreadsheets here.

Additionally, in other Code bills, $20 million was appropriated for county-based mental health funding, and the Four Walls payment issue was resolved in the human services code bill by abrogating 1153.15(6) and 1223.14(11) from 55 Pa. Code.

Contact Jack Phillips with any questions.