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Pennsylvania Governor Josh Shapiro delivered his 2026 budget address to the state legislature. He laid out the $53+ billion spending plan that he says builds on economic growth, rising employment, and increased education funding. Shapiro opened his address by celebrating recent progress within the state, such as 30% more funding for schools, lower unemployment than the national average for two years, and a growing economy that he claims as the strongest in the northeast.
He talked through job creation investments, and private sector deals. The budget plan includes a 6% increase in state spending without raising income taxes, continuedf corporate tax cuts, and a new $1 billion infrastructure fund for housing and other projects. Shapiro also emphasized increased education spending, more mental health support in schools, zoning and housing reforms, and more funding for public safety/violence prevention.
He framed the budget as a defensive move to protect state services if federal funding is cut or delayed.
Growth doesn’t always mean fixing the affordability crisis
The address leaned heavily into growth … rising employment and bigger budgets … but many Pennsylvania residents still face unaffordable rent, stagnant wages, and unstable access to health care.
Progress measured by bond ratings and investment headlines doesn’t always mean the working class is doing great.
Need housing rights
The new infrastructure and housing funding is one that sticks out. Without legislation providing strong affordability requirements, tenant protections, etc housing dollars can funnel into market rate development instead of solving the housing crisis.
So the Q is whether these funds will support affordable housing, public housing, etc or whether they’ll mainly benefit developers while displacement continues.
Increasing demand with no new taxes
Shapiro’s repeated promise not to raise income taxes is really just politically safe. Corporate tax cuts remain intact, as public services face growing demand.
Refusing to raise taxes on the wealthy while expanding spending usually just shifts costs onto workers through things like higher fees or underfunded services.
Key takeaways
The budget centers around economic growth and business confidence more than actually serving the working class.
It’s unclear who will benefit from the housing funding.
Tax policy continues to protect corporations and the wealthy.
Public safety still prioritizes policing over root cause solutions.
Shapiro’s budget only shows what’s possible within the current political climate. The political will to actually make life better for working people doesn’t seem to be there.
Should we have a pool to see when PA actually passes a budget? We don't have a great history.