Josh Shapiro Signs $50.8 Billion Pennsylvania Budget Deal

Governor Josh Shapiro signed a $50.8 billion state budget into law on July 13, 2026, following a rare weekend session of the Pennsylvania General Assembly. The spending plan passed with broad bipartisan support, receiving 44-6 votes in the Senate and 167-35 in the House. This marks the fifth consecutive year the commonwealth has missed its June 30 statutory budget deadline.

The budget invests $11.8 billion in education, featuring a $678 million increase that includes $565 million for historically underfunded school districts. Other key provisions include $775 million for road and bridge projects, cost-of-living adjustments for over 80,000 retired public employees, and doubled funding for rape crisis centers. To preserve the state's $8 billion rainy day fund, the plan utilizes $500 million from off-budget special funds and delays $1.3 billion in Medicaid managed care payments.

To secure the bipartisan agreement, Shapiro dropped several key policy priorities, including a minimum wage increase to $15 per hour, the legalization of recreational marijuana, a regulatory framework for skill games, and dedicated funding for mass transit. The budget also introduces energy and water reporting requirements for large data centers and closes a Philadelphia sales tax loophole for online sellers.

Reaction to the deal was mixed. Senate Majority Leader Joe Pittman and other supporters described the budget as a necessary compromise. However, some legislators criticized the fiscal maneuvers as "cooking the books" or argued that the deal deferred critical issues that constituents cannot afford to wait on.