Feb 10 State Budget 2026-27: A Review of Gov. Shapiro’s Proposal
(February 10, 2026)
On Tuesday, Feb. 3 Governor Josh Shapiro released his proposed budget for the 2026-27 fiscal year. The budget proposal has some bright spots and some areas where additional investments are desperately needed. As a reminder, the governor’s proposed budget is just that – a proposal that highlights the Governor’s priorities and where he believes the General Assembly should allocate funding during the budget and appropriations process.
Education and Lifelong Success
Highlights of the budget include continuing increased investments for Building Opportunities for Out of School Time (BOOST), career and technical education, special education, Basic Education Funding, and adequacy supplemental funding for our most struggling schools.
Building Opportunities for Out of School Time (BOOST) – BOOST was specifically mentioned in the governor’s remarks for its role in keeping kids “safe, supported, and engaged.” The budget proposes a $6.2 million increase in the Violence and Prevention line item, the program area that funds BOOST. $1 million of this increase is to expand the BOOST program, and the other $5.2 million is to continue to support community violence prevention programs.
CTE – Specifically, the governor proposed a total increase of $14.3 million for CTE. This includes $4.3 million to be distributed through the current subsidy formula and $10 million for high-quality STEM and computer science programs. Unfortunately, the equipment line item was level funded. The Governor also proposed two policy changes: The first would allow CTE students to take their competency exams when they complete the program requirements, instead of when they graduate in 12th grade. The second is to provide flexibility in meeting graduation requirements, specifically with courses that provide both academic and technical instruction.
Basic Education Funding, Ready to Learn, and Special Education – The Governor continues to support increases in K-12 education funding. This budget proposes a $50 million increase for the Basic Education Funding formula, the largest source of classroom funding, $565 million increase in the Ready to Learn grant to support the most struggling schools through an adequacy supplement, and an increase of $50 million for special education. The budget also estimates $75 million in savings from cyber charter school reform.
Early Learning – The budget has wins for early learning and child care, including increasing funds to support child care staff recruitment and retention, increases in Pre-K Counts and Head Start Supplemental. To learn more about child care and the advocacy for these programs, please see our recent guest blog by Jen DeBell, Executive Director of PennAEYC.
Family and Community Support
Evidence Based Home-Visiting – Many key programs remain level-funded, despite the need for additional investments. Evidence-based home visiting was level-funded for the fourth consecutive year through the community based family centers and nurse-family partnership line items.
Child Welfare – Governor Shapiro’s proposed budget keeps state child welfare funding at $1.49 billion, demonstrating sustained support for children and families across Pennsylvania. The proposal includes a $658,000 increase to support ChildLine call-taker staffing and training to ensure there is adequate staffing and high-quality training. In his budget address, Governor Shapiro highlighted the importance of updating the Child Protective Services Act (CPSL). The governor underscored the need to address overreporting to General Protective Services (GPS) which is a critical step toward ensuring families receive appropriate support while preserving system capacity for children at the greatest risk .The proposed budget also prioritizes stronger support for families of children with complex health care needs, who frequently face fragmented systems with limited coordination.
Health & Wellness
School Mental Health – The budget continues investments in school mental health, building on $300 million that has helped nearly 800 schools expand supports and hire over 200 counselors. It proposes an additional $111 million for school safety and student well-being. These investments mark meaningful progress, but more work is needed to expand early intervention (see below), trauma-informed supports, and community-based mental health partnerships.
Early Intervention – Unfortunately, Early Intervention Part C, for ages birth to 3, is proposed to receive a decrease in funding. Early Intervention provides critical evaluations and services for all birth to three year olds who have developmental delays, regardless of household income. Allies for Children is a partner in the Early Learning PA Early Intervention campaign, advocating for increases in funding, better coordination of services, and a supported workforce.
Nutrition – Nutrition items in the budget proposal include the continuation of the universal free breakfast program, addressing upcoming shifts in SNAP cost-sharing to states, and new funding for the Medicaid 1115 demonstration waiver, Keystones of Health. Specifically, this budget proposal includes $900,000 in funding for Medicaid food and nutrition initiatives, which proposed medically-tailored meals and groceries for those who are pregnant or have diet-sensitive conditions, with a goal of connecting to existing longer-term nutritional supports. Also included in the Governor’s proposal for Keystones of Health is $1M in DHS Medicaid funding for Housing supports for people experiencing homelessness with chronic health conditions, serious mental illness or substance abuse disorders, or those who are pregnant or postpartum. The budget proposal also included $86M to fill the gap created as new Federal policies that will shift the administrative cost share to states for SNAP are implemented.
Allies for Children will monitor the progress of the 2026-27 budget as the proposal is reviewed by the General Assembly. Appropriations hearings are set to begin on February 23 in both the House and Senate, with the Senate first hearing testimony on the Department of Education budget.
Curious about the budget and appropriations process? Take a look at this blog to see the opportunities to advocate during the budget and appropriations process.
Additional Information:
Governor’s Budget Proposal Tracking Run