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pa budget

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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.

RCPA will continue to update members as more information from the budget is available. We will discuss the budget in detail during the Government Affairs meeting next Thursday, November 20, 2025. You can register for the meeting here.

Contact Jack Phillips with any questions.

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Harrisburg, USA - May 24, 2017: Pennsylvania capitol interior dome colorful ceiling in city with American Flags

The planned protest of the state budget impasse for Tuesday, November 18, on the Capitol steps has been cancelled, as 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.

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Harrisburg, USA - May 24, 2017: Pennsylvania capitol interior dome colorful ceiling in city with American Flags

On Thursday, October 2, RCPA joined The Coalition of Critical Services Providers at the Harrisburg State Capitol Rotunda, urging Governor Shapiro and the Pennsylvania General Assembly to pass a final state budget that invests appropriately in health and human services before there are no providers left to care for Pennsylvania’s most vulnerable. The event served as a call for an immediate budget resolution to ensure vital services for residents can continue across the Commonwealth as the Pennsylvania budget impasse enters its fourth month. Speakers included RCPA COO and Mental Health Policy Director Jim Sharp and President from United Way of PA Kristen Rotz. Behavioral Health Division Policy Associate Emma Sharp and Government Affairs Director Jack Phillips were also in attendance.

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In addition, RCPA member EIPA Vice President Anne Lang and RCPA member Pathways Forward CEO Pat Slattery spoke of the current challenges in funding, stressing that investing money now would be vastly more economical than the long-term cost of leaving services underfunded.

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As of today, September 18, RCPA is reporting to members that the budget impasse unfortunately remains unchanged after 80 days. As this week comes to a close, it does not appear there will be action to move the budget process forward.

The Senate currently remains on 24-hour call, with their next scheduled session days October 20 – 22. The House has their first scheduled Fall session set for September 29 – October 1.

Every day that passes without a budget is another day of uncertainty for:

  • People with disabilities, who rely on base-funded supports to live, work, and thrive in their communities;
  • Individuals and families in recovery, whose access to care depends on consistent funding and provider stability;
  • Children and adults facing mental health challenges, who can’t wait weeks — or months — for the services they need today;
  • Human service professionals, who are burning out, underpaid, and leaving the field in record numbers;
  • County governments, who administer core safety net services and are already preparing to withhold payments due to the impasse; and
  • Nonprofit organizations and service providers, who operate on tight margins, front the cost of services, and risk financial insolvency without reimbursement.

We thank our members for their participation in the recent State Budget Impasse Survey that was organized by agencies, associations, and providers to collect data regarding both the current and projected impact on both for-profit and nonprofit financials, staffing, and ultimately those served. We will continue sharing information with all entities involved so that the survey results can be analyzed and disseminated to the media and legislative contacts most efficiently.

You can also view this article from Spotlight PA, which provides a good overview of where the PA General Assembly caucuses stand and what is causing the impasse to continue.

If you have any questions or concerns, please contact your respective RCPA Policy Director.

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REMINDER — PLEASE DISREGARD IF YOU HAVE ALREADY COMPLETED THIS SURVEY

Pennsylvania’s General Assembly has not yet passed the budget for FY 2025/26, and we are already two months into this fiscal cycle. This delay is creating another crisis while communities grapple with the longer-term implications of the recently passed HR 1 Tax Reconciliation Bill at the federal level. We want to hear from you via this 2025 Budget Impasse Survey so that we can raise a collective nonprofit clamor about the impact this delay has on real people in every neighborhood and community in the Commonwealth.

We know — our organizations are over-surveyed during times of urgency!

So, to eliminate duplicative work, various associations and networks, including RCPA, have come together to collect data regarding both the current and projected impact on both for-profit and nonprofit financials, staffing, and ultimately those served. We will share information with everyone involved so that the survey results can be analyzed and disseminated to the media and legislative contacts most efficiently. Below are the organizations that are coming together to collect this data in order to show you the importance of this information.

For more details about the length of the survey and those best suited to complete it, please see this PDF version so you can prepare. The initial survey deadline is 11:59 pm on Monday, September 15, 2025. For questions about the survey, please email Anne Gingerich, Executive Director, PANO.

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Photo by Markus Winkler on Unsplash
RCPA, alongside various associations and networks, shared a 2025 Budget Impasse Survey in order to collect data regarding the current and projected impacts on organizations in relation to the PA FY 2025/26 budget impasse. We are sending an update to stress that both for-profit and nonprofit organizations may participate in this survey.

We want to hear from your organization via this 2025 Budget Impasse Survey so that we can highlight the impacts this delay has on real people in every neighborhood and community in the Commonwealth.

We will share information with all parties involved so that the survey results can be analyzed and disseminated to the media and legislative contacts most efficiently. Below are the organizations that are coming together to collect this data in order to show you the importance of this information.

 
For more details about the length of the survey and those best suited to complete it, please see this PDF version.

The initial survey deadline is 11:59 pm on Monday, September 15, 2025.

For questions about the survey, please email Anne Gingerich, Executive Director, PANO.

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The status of the PA state budget continues to impact every provider, insurer, and health care organization. With funding in limbo and federal Medicaid cuts already causing disruptions in services, providers are having to work together and create unique solutions to funding and providing patients with quality care.

At the 2025 RCPA Conference Strive to Thrive, RCPA is hosting an Agency Leadership Discussion Panel comprised of experts who have been following the status of Pennsylvania’s budget. The panel will include professional input from:

Paul Dlugolecki
Brier Dlugolecki Strategies
Jack Phillips
Novak Strategies
Jenn Tyler
Wojdak Government Relations

Join this panel on Wednesday, September 10, in the Crystal A room, from 3:15 pm – 4:15 pm, where they will:

  • Discuss the current status of the budget and potential timelines;
  • Analyze the impacts of the budget impasse and the budget itself on providers and health care organizations;
  • Share strategies that providers are using to continue providing care to their patients; and
  • Host a Q&A with attendees for an open, honest discussion on what is happening and what providers can do to support themselves and others.
Register today for the 2025 Conference and reserve your seat. View the Registration Brochure for complete details regarding our schedule, booking a hotel room, and more!
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