NEW👉PADSA Update: 2025–2026 State Budget Highlights for Adult Day Centers

Dear Pennsylvania Adult Day Center Directors,

The Pennsylvania Legislature has passed the 2025–2026 State Budget and Fiscal Code. While this year’s budget does not include direct Adult Day Services funding changes, several items will influence the operating environment for ADS programs across the Commonwealth.

We are providing a brief overview below for all providers. A more detailed, ADS-specific analysis is available exclusively to PADSA members after logging in.

An attachment is included with this message, contains key excerpts from the state budget (SB 160 PN 1309) relevant to aging services and long-term care funding. This document is intended to support your understanding of the budget context.

While the 2025–2026 budget does not include direct rate adjustments or new funding for Adult Day Services, several line items are relevant to the ADS network:

Community Health Choices
CHC received an increase of more than $600 million. Although slightly below the original request, this supports the broader long-term services infrastructure and may offer some indirect stabilization in managed care funding.

PENNCARE and Aging Services
PENNCARE received a modest funding increase. While not ADS-specific, it supports the Options Program and related aging services, which many Adult Day Centers intersect with when serving older adults.

Fiscal Code Changes
The Fiscal Code authorizes transfers intended to strengthen the Lottery Fund, a key driver of aging services statewide. This is particularly important given prior concerns about the long-term stability of the fund.

2026–2027 Budget Outlook
Departments have already submitted proposals for next year’s budget. With further federal reductions anticipated, it is expected to be another difficult budget cycle. PADSA will continue to push for ADS recognition and rate reform.

How This Impacts Adult Day Centers
• No direct ADS funding or rate changes this year
• Some indirect stabilization via CHC and aging program increases
• Ongoing advocacy is essential for the upcoming budget cycle
• PADSA will continue to monitor developments and update members regularly

The attached document includes the specific pages from SB 160 PN 1309 referenced throughout this update.Track-2025-26-SB160PN1309

Sincerely,
Pennsylvania Adult Day Services Association (PADSA)

Vlada Rubarkh, PADSA VP