The 2025–2026 Pennsylvania state budget delivers a milestone year for public education, with historic investments and new reforms coinciding with the recent resolution of the federal government shutdown. These changes provide crucial clarity and support for school districts across the Commonwealth as they move forward with budget implementation.​

Pennsylvania Education Funding in 2025–2026

The budget allocates over $900 million in additional education spending:

• $565 million is distributed through a revised adequacy formula, channeling resources to the districts with the greatest need.​

• Basic Education Funding increases by $105 million, bringing total funding in this category to $8.26 billion.​

• Special Education receives a $40 million boost, supporting equity and inclusion initiatives statewide.​

• School infrastructure is targeted with $125 million for modernization and safety improvements.​

• $100 million is dedicated to mental health and safety programs for students.​

Comprehensive Charter School Reforms

A highlight of this year’s budget is the sweeping reform of Pennsylvania’s cyber charter school funding system.​

• Aligning Tuition with Actual Costs: For years, school districts were required to pay cyber charter schools the same tuition rate as brick-and-mortar charters, even though online-only schools have significantly lower overhead. The 2025–2026 reforms recalibrate these payments so they better reflect the true costs of delivering online education, closing long-standing loopholes and adding new allowable deductions for expenses not incurred by cyber charters.​

  • Deductions include tuition paid to cyber charter schools for non-special education students, tax assessment and collection services, sixty percent of student activities, and sixty percent of operations and maintenance of plant services.

• Substantial Cost Savings: These changes will save traditional public school districts $175–178 million statewide in the coming year—funds that can be redirected to directly benefit students in local schools.​

• Weekly Wellness Checks: Another new requirement is that cyber charter schools must conduct weekly wellness checks, during which a teacher or administrator must visibly connect with each student. This measure was inspired by the need to ensure student safety following tragic incidents involving cyber students.​

• Impact on Cyber Charter Operations: The changes are significant; some cyber charter operators have reported the potential for staff reductions due to decreased revenue from the funding formula adjustment. However, advocates of reform point to increased fiscal responsibility and greater accountability, ensuring taxpayer dollars are focused on student needs, not inflated administrative costs.​

Federal Shutdown Context

• The budget negotiations unfolded in the shadow of the federal government shutdown, which has now ended; the resolution of federal uncertainties allowed Pennsylvania lawmakers to proceed with confidence, ensuring stability and full implementation of planned education initiatives.​

• The commitment to adequacy and equity—inspired by both federal and state mandates—remained central, with bipartisan support aligning around sustained increases and reforms in education spending.​

Summary Table: 2025–2026 Education Spending