Gov. Shapiro says ‘PA is on the Rise’ – Despite Vast Political Change at the Federal Level

Democratic Governor, Josh Shapiro, wants to double down on “common-sense” initiatives by expanding Pennsylvania’s 2025-26 budget.

On Tuesday, February 4th, the Pennsylvania General Assembly convened on the House floor to receive the Governor’s plans for the upcoming fiscal year. This is Shapiro’s third time delivering the budget address as governor.

The proposed budget increases funding for education by $75 million and boosts funding for mass transportation by $292.5 million. The proposal also includes an allocation of $40 million for student-teacher stipends and a $1 billion investment into a first-time homebuyer program.

Shapiro started his speech by praising bipartisan efforts. “We’ve moved the ball down the field and put points on the board – and we should celebrate,” stated Shapiro as he addressed his colleagues on both sides of the aisle.

“But we should be hungry for more,” Shapiro reports that since the start of his term unemployment rates across the state have decreased. Pennsylvania’s current unemployment rate stands at 3.6%.

He also announced that violence in the commonwealth has dropped significantly. This is true for Philadelphia. Reports from The Philadelphia Police Department show that homicides lessened from 410 to 269 between the years of 2023 and 2024.

Now let's talk about the initiatives that were flat-funded in the Governor's proposal:

• The Head Start Program, a program that provides early childhood services and care to low-income families, was level-funded in the 2025-26 proposal at $90,878.
• Temple University, alongside Penn State University and the University of Pittsburgh, remains flat-funded, but a $60 million pot of competitive funding is attainable to these institutions if they satisfy a performance-based metric system.
• Health services that work to protect the lives of Black Pennsylvanians, like Maternal Health Care and Sickle Cell services were also flat-funded. Other programs were Reduced.

A full breakdown of the proposed budget can be found here. Aside from funding, in the address, the Governor issued the Assembly to place new legislation on his desk.

Shapiro spoke on the controversial topic of legalizing recreational marijuana.“ 24 states have already legalized adult-use cannabis. That includes almost every single one of our neighbors,” said Shapiro. “And by doing nothing we are making Pennsylvania less competitive.”

“We’re losing out on revenue,” remarked Senator Street (D-Phila) in an exclusive with The Download. The Governor also urged for record expungements of those convicted on non-violent cannabis charges. This proposition enacted a roar of excitement on the left side of the aisle, however, the Right side was not as enthused. Republicans still concretely hold the majority in the Senate, therefore predicted movement on this matter is unknown.

The topic of raising the minimum wage to $15/hour also was incorporated into the address. The minimum wage in Pennsylvania sits at $7.25/hour and according to Shapiro, it's been stabilized at that amount for the last 16 years. “That’s hurting workers,” Shapiro expressed. “In the last session, the House of Representatives passed legislation to increase our minimum wage... and the Senate sat on its hands.”

Similarly to what is reflected in the federal government; Republican delegates want to cut back on spending and Democrats want to expand. The House Republican Caucus released a statement responding to the Governor’s proposed plan. The general consensus; House Republicans find the spending plan for 2025-26 to be unnecessary and unaffordable.

“Gov. Shapiro’s budget proposal increases spending far beyond sustainable levels,” remarked Jim Struzzi (R-Indiana), House Republican Appropriations Chairman. “Now listen, we are not for wasteful spending... we’re saying let’s make targeted and strategic investments that grow Pennsylvania,” said House Democratic Appropriations Chairman, Jordan Harris (D-Phila), in a press conference.

According to breakdowns from the House of Appropriations, the state’s current operating budget sits at $133.7 billion. This combined total includes $53.1 billion in federal funds. Right now at the federal level, the Trump Administration is working to enact permanent funding freezes on certain assistance programs. Such limitations could refigure Pennsylvania’s upcoming budget season.

“What is looming in Washington could force us back here in a very short amount of time to have another conversation. That's very real,” remarked Senator Hughes (D-Phila), in a press Conference. Although possible changes are on the horizon, Democratic leadership in Pennsylvania is encouraged. According to Shapiro, even with a budget increase, Pennsylvania still keeps a billion-dollar surplus. “Each of the last two years both Democrats and Republicans have voted for commonsense budgets...,” said Shapiro in his speech. “Pennsylvania is on the rise!”

Appropriations hearings start in Harrisburg on Tuesday, February 18th.