HARRISBURG, Pa. (Nov. 13, 2025) – Over four months past the June 30th deadline, the Pennsylvania Legislature has finally passed and Gov. Shapiro signed a state budget for the 2025-26 fiscal year. While the final deal avoids immediate tax hikes and includes some positive steps for families and businesses, it still spends far too much and leaves working Pennsylvanians on the hook for years to come.
Here are highlights on this state budget’s impact on Pennsylvania families and what it means for our mission at Pennsylvania Family Institute:
GOOD NEWS: Increases to the Successful Scholarship Program (despite a missed opportunity for expanding school choice).
State lawmakers opted to raise the cap on tax credit scholarships (EITC/OSTC) for students in economically disadvantaged schools by $50 million, a 10-percent cap increase.
That increase will help more families access schools that align with their faith and values. But it’s still not enough to meet the overwhelming demand. Thousands of Pennsylvania students remain on waiting lists, shut out of opportunities that could change their lives.
Our Family Choice Scholarship Program is one way we’re helping fill the gap, allowing businesses and individuals to direct their state taxes toward scholarships for children to attend private, faith-based schools. Learn more at MyFamilyChoice.org.
Despite campaign promises from Governor Shapiro, this budget once again fails to fund Lifeline Scholarships. This is a program that would have empowered parents to choose the best education for their children trapped in failing public schools.
GOOD NEWS: Lawmakers reject marijuana legalization as a revenue source.
Despite the push by Governor Shapiro and the heightened lobbying efforts by the marijuana industry, the threat of establishing the commercial sale of marijuana for recreational use was not included as part of this state budget.
The reality is that increasing access to dangerously high THC marijuana produces more harm than the projected revenues from taxing these harmful and addictive products. If we value the health and safety of children and families, we must continue to reject the demands of this addiction-for-profit marijuana industry and find better solutions to PA’s current medical use program, not ways to make it worse.
BAD NEWS: Punishing Cyber Charter Students
The new budget includes cuts to public cyber charter schools, reducing funding by an estimated $178 million across 14 schools.
These schools already receive about 25% less per student than traditional districts, yet they continue to serve 65,000 Pennsylvania students and their families who seek flexible, values-based alternatives to failing or unsafe public schools.
Rather than expanding parental choice, these cuts bow to teachers’ union pressure and hurt the very students who need innovation most.
BAD NEWS: Unsustainable Spending: Future Tax Hikes Loom
The final budget spends $50.09 billion, a 5.1% increase over last year. That level of spending exceeds projected revenue by $5.1 billion, creating a massive structural deficit.
To balance the books, lawmakers raided one-time funds, draining the general fund balance and redirecting unused accounts. But these are temporary fixes.
If spending isn’t brought under control, Pennsylvanians could face tax hikes or deep cuts as soon as next year
Overspending today means families and our state economy will pay the price tomorrow.
Bottom Line
This year’s budget reflects a familiar pattern in Harrisburg: short-term politics over long-term prudence.
While it includes some wins for families and small businesses, it still falls short of prioritizing true educational freedom, fiscal discipline, and respect for Pennsylvania taxpayers.
Pennsylvania Family Institute will continue to:
- Advocate for expanding parental choices in education through programs like Lifeline Scholarships so every family can choose the best education for their child.
- Defend cyber charter families from political attacks.
- Join with other conservative organizations in Harrisburg to hold lawmakers accountable for fiscal responsibility that protects working families.
The fight for a Pennsylvania where God is honored, religious freedom flourishes, families thrive, and life is cherished continues, because families deserve better than budget gimmicks and broken promises.
Learn more and support our work:
➡️ pafamily.org/scholarships
➡️ pafamily.org/donate
