Pennsylvania legislators finally agreed on a $50+ billion budget for the current fiscal year, more than 130 days after the deadline.

It includes research commitments across the commonwealth, including ones that could help boost Philadelphia’s life sciences scene, plus cash for innovation in the manufacturing sector, a scene where Pittsburgh has undertaken vast initiatives to improve.

There are also millions allocated for career training programs, new private sector incentives and upcoming US Semiquincentennial celebrations.

“This budget continues Pennsylvania’s economic rise,” said Gov. Josh Shapiro, “cutting taxes for our businesses and investing in sites, in innovation, and in the main streets that form the beating heart of so many communities.”

The final budget is lower than what Shapiro, a Democrat, proposed back in February for FY 2025-2026 (he’d put forth a roughly $51.5B spending plan). While his party has a narrow margin in the Pennsylvania State House, Republicans control the State Senate, and differences between the parties held up the passage for over four months — one of the longest in history.

As negotiations dragged on, billions in payments to schools, counties and human-service providers have been delayed, forcing short-term fixes, while also facing funding shortfalls from the federal government.

The months-long stalemate resulted in notable compromises between the parties, including cuts to cyber charter reimbursements, new funding for underresourced schools and an end to Pennsylvania’s participation in the Regional Greenhouse Gas Initiative.

Here’s a full breakdown of all the tech, economic development and innovation funding to watch in the new budget.

Incentivizing tech startups and new business 

Investments in robotics, manufacturing, life sciences and other tech-driven industries have been a cornerstone of Pennsylvania’s economic development strategy in recent years — and this year’s budget continues the pattern.

The Department of Community and Economic Development, which manages programs that support business and job growth in the commonwealth, was allocated level funding compared to last year for most major programs. That still equates to millions of dollars to support tech companies, small businesses and tourism. 

Tech startups across the state will get a boost through the Ben Franklin Technology Development Authority Fund, which was allocated $17 million, same as the previous year. At least 80% of that funding will go towards Ben Franklin Technology Partners, a statewide organization that invests money and provides resources to local tech companies. 

Money is also going towards the creation of new companies, specifically ones spinning out of the Pennsylvania State University. Invent Penn State, a program that supports startup ideation and incubation at the university level, will receive $2.35 million, the same as last year. 

The commonwealth will continue to support small businesses through the Main Street Matters Program and the Historically Disadvantaged Business Program, with $20 million again allocated to each. 

The life science sector will get a boost thanks to another annual $3 million allocated to the Life Science Greenhouse Initiative, which provides funding and support to those early-stage companies. Plus, the commonwealth’s Agricultural Innovation Fund again received $10 million, going toward helping farmers adopt new technologies.

Despite being known for its prowess in the life sciences sector, the Philadelphia region faced challenges this year.  Industries like cell and gene therapy require a lot of money, and regional stars like Spark Therapeutics struggled in 2025. 

Other investments through the DCED include

$2.5 million towards helping local businesses implement technology,

$13 million to train people for manufacturing jobs and increase manufacturing capacity, and 

$500,000 for supercomputer center projects.

NFL Draft, USA250 and lower corporate income taxes

“Next year, the eyes of the world are going to be on us as we celebrate 250 years of American democracy,” Shapiro said, plus “we will play host to the NFL Draft, March Madness, the PGA Championship, the FIFA World Cup, the MLB All-Star Game and even more.”

Millions of people will visit Pennsylvania as a part of those events, he said, and the budget invests $50 million “to help make sure we are prepared and safe next year as we welcome the world to the birthplace of democracy” — including $10 million just for the NFL Draft in Pittsburgh. DCED will get $2.5 million to support its planning for America250PA semiquincentennial celebrations.

PA SITES received another $175 million to build shovel-ready sites for businesses and the budget includes a provision to lower the Corporate Net Income Tax, efforts to drive more private sector investment in Pennsylvania. $20 million will go towards paying off loans already used for the program. 

Workforce, research and education

In total, the new budget outlines $183 million in funding for career and technical education and apprenticeship programs, according to Shapiro’s remarks. 

Pennsylvania will maintain its current level of state funding for workforce training programs under the Workforce Innovation and Opportunity Act, per the newly passed budget.

The budget allocates more than $19.8 million of state funding for workforce development efforts 

$12.5 million for apprenticeship training,

$3.5 million for School-to-Work programs,

$2.8 million for industry partnerships, and

$1 million for New Choices/New Options programs.

Notable across Pennsylvania’s research corridors, millions from the commonwealth will be dedicated to new funding opportunities.

Under the Department of Health, $11.35 million will go toward biotechnology research, funds that Pennsylvania institutions are leaning on after the Trump administration’s cuts to federal science grants. Other health research grants include $5 million for institutions studying neurodegenerative diseases.

IT and cybersecurity upgrades

The Commonwealth Office of Digital Experience (CODE PA) will operate on a budget of $11.55 million. That’s significantly higher than the fiscal year 2024 to 2025’s enacted total of $8.24 million

Established in 2023, Shapiro called CODE PA “Pennsylvania’s tech startup,” responsible for connecting residents to online government services.

Since then, the award-winning department has created a unified PA.gov, developed an online tool to help residents appeal denied healthcare claims and several other projects. Internal improvements to permitting processes, a major tentpole of Shapiro’s administration, will also continue to be a priority.

“This budget expands DEP’s SPEED program, codifies parts of our PAyback initiative and creates a new, public dashboard to track permits,” Shapiro said.

Several agencies are also set to receive information technology and cybersecurity upgrades. 

The budget includes

$3.49 million for judicial system cybersecurity and disaster recovery, 

$1.25 million for Treasury Department information technology and cybersecurity,

$27.87 million for law enforcement information technology,

$5.1 million for information technology modernization at the legislative data processing committee, and

$7.59 million for technology and process modernization within the Department of Revenue.

Energy and utilities 

As part of the state budget negotiations, lawmakers agreed to advance a bill that would expand oversight of PJM Interconnection — the independent organization that manages Pennsylvania’s electric grid — according to the Philadelphia Inquirer. 

The proposal would give the Pennsylvania Public Utility Commission authority to review how PJM forecasts future electricity demand. 

That matters because PJM’s energy forecasts help determine the price of electricity across the region. With the recent boom in electricity demand – partially fueled by data centers –  the price PJM sets for electricity has risen. This is ultimately trickling down to households and businesses’ monthly electricity bills. 

The rising rates have drawn criticism from state leaders, and Shapiro recently threatened to pull Pennsylvania out of PJM if prices don’t stabilize.

“We have more work to do to grow our economy — and what we do on energy is a big part of that,” Shapiro said. 
This is happening at the same time as the new budget phases the commonwealth out of the Regional Greenhouse Gas Initiative, a program requiring companies to cap their carbon emissions. Critics of the move say it will raise energy prices for Pennsylvanians, while Republicans have long argued the program prevented lower consumer bills.