The Department of Human Services (DHS) Secretary Val Arkoosh met with systems stakeholders to provide an overview of the Governor’s proposed 2025/26 DHS budget. The Secretary began by reviewing the accomplishments of DHS under the administration and highlighted areas around Medicaid, systems enhancements, and the expansion in the delivery of services to Pennsylvanians.

The projected spending across DHS showed an investment of $21.17B, with the following breakdowns:

• $7.13B for Long-Term Living;
• $6.4B for Medicaid/healthcare delivery;
• $3.22B for ID/A;
• $1.72B for Human Services and County Child Welfare; and
• $1.04B for Mental Health and Substance Use Disorders.

This budget number represents a $1.95B increase over last year’s executive budget. The most significant increases included:

• $927M for Long-Term Living;
• $7.23M for Medicaid/healthcare delivery;
• $1.84M for ID/A;
• $74M for Child Development; and
• $32M for Mental Health and Substance Use Disorders.

RCPA submitted questions during the webinar in an effort to gain greater clarity on the proposed $2.4B increase in the Health Choices capitation. Several questions remain unanswered, including:

• Are these dollars allocated towards physical health, behavioral health, or both?
• What is the spending strategy for the 2024/25 supplemental appropriations? Is that part of the $2.4B?

There was clarification on the proposed $170M increase in the ID/A budget, but Secretary Arkoosh stipulated that this was not new investments but rather funds to sustain last year’s increase.

The remainder of the webinar was spent outlining current DHS initiatives, including the Keystones of Health 1115 Waiver, which was approved in December 2024. This year’s priority will focus on reentry services as well as planning for future implementation. The Secretary concluded her comments supporting the minimum wage increase, reinforcing the workforce infrastructure, and tackling Commonwealth-wide challenges.

The DHS Bluebook is scheduled for release in the coming weeks and will provide line item details of the budget. RCPA will continue to work with DHS and PA legislators on the budget specifics and our ongoing advocacy efforts. You can view the DHS budget webinar here.

RCPA will continue to update members on the budget as information becomes available. If you have further questions, please contact your RCPA Policy Director.