Governor Josh Shapiro unveiled his $53.26 billion budget proposal to the General Assembly and Pennsylvanians on February 2.  The proposal is a 6.3% increase over the 2025-26 budget, and he says it balances the budget, does not raise taxes and does not rely of any broad-based tax increase. The governor’s proposal would regulate skill games and legalize adult-use cannabis to generate approximately $2 billion annually.

Governor Shapiro’s plan calls for a raise in the minimum wage from $7.25 an hour to $15 an hour beginning January 1, 2027. He says the higher wage would boost consumer spending, reduce turnover for employers and improve workers’ health and economic stability. While many employers already pay substantially more than the minimum wage, the governor says more than half a million Pennsylvanians still earn less than $15 an hour. Pennsylvania’s minimum wage has been in place since 2009 and the purchasing power of the wage has eroded by more than 30 percent since then.

The governor announced his continuing commitment to businesses by cutting red tape, streamlining the permitting and licensing process, and launching the Commonwealth’s first comprehensive economic development strategy in two decades. The PA First Program, which connects businesses with trained workers and supports job retention and capital investments, will receive an additional $10 million for a total of $38 million. He also designated $9 million for the Agricultural Innovation Program to drive innovation in agriculture; and proposes transferring an additional 1.75% of the Sales and Use Tax revenues to the Pennsylvania Transportation Trust Fund beginning July 1, 2027 to prevent service cuts and stabilize mass transit systems across the Commonwealth.

The budget provides funds for supporting law enforcement and fire protection, including $68.3 million for the Pennsylvania Commission on Crime and Delinquency’s Violence Intervention and Prevention Program (PCCD); $16.2 million for additional law enforcement training; and a $30 million investment in competitive grants to support recruitment, retention and capital needs for volunteer and professional fire companies.

School funding would increase by $565 million. Vo-tech, Career and Technology Education and apprenticeship programs would receive an additional $18 million. While higher education funding would include a $30 million investment in performance-based funding to Penn State, University of Pittsburgh and Temple University, plus $1.1 million Lincoln University, a historically black college and university.

He would also work to protect the vulnerable population from fraud originating from artificial intelligence (AI) by regulating it to include age verification, parental alerts, transparency reminders and prohibitions on sexually explicit or violent content involving minors. In addition, the governor is committed to positioning the Commonwealth as a national leader in the development of data centers and AI, while protecting energy and water resources; providing transparency and community engagement; responsible growth with accountability and delivering local jobs and community benefits.

Read the press release about the governor’s proposed budget.