New Report: Closing School Funding Gaps Across Urban and Rural Pennsylvania

Posted by Penn Policy Center on July 28, 2026

The Pennsylvania Policy Center has released its newest report examining the impact of adequacy funding.

For decades, Pennsylvania’s school funding system relied too heavily on local wealth rather than student need, leaving students in many low-income communities, communities of color, and rural communities without the resources they deserved. The Commonwealth Court ruled in 2023 that this system was unconstitutional, leading Pennsylvania to begin investing in school funding based on adequacy. This year’s enacted budget builds on that progress by making another significant investment toward closing those funding gaps.

Among the key findings:

• The adequacy funding formula is working as intended by directing the largest new investments to school districts with the greatest remaining funding gaps.
• Districts serving the highest concentrations of low-income students, Black students, and Hispanic students are receiving some of the largest reductions in funding gaps.
• Pennsylvania’s school funding inequities are not simply an urban issue. The adequacy formula is benefiting both urban and many low-income, predominantly white rural school districts by directing the largest investments where student need is greatest, regardless of geography.

The report makes something else clear: while Pennsylvania has made meaningful progress, billions of dollars in unmet need remain. Continued investments will be necessary to ensure every student, regardless of race, income, or ZIP code, has access to a thorough and efficient public education.

Read the report.