The state budget for FY 2026-27 that lawmakers passed on Sunday has several key provisions that address some of PSEA’s top priorities, which are outlined below.

“This state budget reflects a remarkable commitment to K-12 public education in Pennsylvania and reminds us how important it is to elect pro-public education leaders,” PSEA President Aaron Chapin said. “The budget continues a multiyear plan to improve school funding adequacy and equity, helping more students in more communities reach their full potential. It also invests more in the Student Teacher Support Program, ensuring that nearly every student teacher eligible for a stipend will receive one in the coming school year."

This budget includes a $565 million increase in adequacy and equity funding that is part of the multiyear effort to close the adequacy gap in response to the 2023 Commonwealth Court ruling.

PSEA is a strong supporter of adequacy supplements, which have empowered more school districts to hire teachers, lower class sizes, maintain key educational programs, invest in STEM, and support math and literacy coaching, among other things.

This funding increase is a major win for ensuring all schools are funded equally and that all students across the commonwealth have access to a quality public education.

This budget includes a long-overdue cost-of-living adjustment (COLA) for more than 34,000 retired educators and education support professionals who retired before Act 9 of 2001. After nearly 25 years without a pension increase, these retirees will finally receive meaningful relief.

The bipartisan state budget approved by the General Assembly and signed by Gov. Josh Shapiro includes a permanent COLA for eligible pre-Act 9 PSERS retirees.

This marks the first time since 2002 that Pennsylvania has approved a pension COLA for retired public school employees. Thousands of retired educators and support professionals who have seen inflation steadily erode the value of their pensions will finally receive the increase they have earned.

This victory simply would not have been possible without years of advocacy from PSEA members, retirees, legislators from both parties, and the governor. In the last three years, PSEA members have sent more than 45,000 messages to lawmakers on COLA legislation.

Together, we secured one of PSEA’s legislative priorities and reaffirmed that every public school employee deserves dignity and security in retirement.

Act 33 of 2023 created the Student Teacher Support Grant Program in response to the advocacy of Student PSEA members who called for the creation of a student teacher stipend program to pay aspiring educators during their 12-week student teacher experience. Pennsylvania’s policymakers listened to student voices about the challenges they face as they navigate the student teacher experience and struggle to support themselves and/or their families.

Recipients of a student teacher stipend grant from the Pennsylvania Higher Education Assistance Agency (PHEAA) must agree to teach at a Pennsylvania public or nonpublic school for three years. This program goes right to the heart of the school staff shortage impacting Pennsylvania and states across the country.

The FY 2026-27 budget includes a $10 million increase for student teacher stipends, bringing total funding to $40 million for FY 2026–27, which means more than 700 more student teachers and their cooperating teachers will receive stipends

There is good news for higher education in the FY 2026-27 budget, including more money to help students afford college and additional resources for the Pennsylvania State System of Higher Education (PASSHE).

The budget includes a $5.9 million increase for the Pennsylvania State Grant program through the Pennsylvania Higher Education Assistance Agency (PHEAA) and a $10 million increase for Grow PA scholarships to help students pursuing critical in-demand jobs, including careers in education.

The budget agreement also includes $78 million to provide debt relief to PASSHE, freeing up resources to be invested back into universities and students across the system.

PSEA is proud to represent thousands of faculty and staff in higher education institutions across the commonwealth. Going forward, we want to build on past progress by continuing advocacy efforts to increase funding for public higher education in Pennsylvania and to make college more affordable.