Governor Shapiro Unveils 2026–27 Budget Proposal to Keep Doing What’s Working in Pennsylvania: Cutting Costs, Growing the Economy, Strengthening Public Safety, Funding Education, and Getting Stuff Done for Pennsylvanians

Governor Shapiro’s 2026-27 budget proposal is a commonsense plan that builds on three years of progress by continuing to do what’s working and keeping Pennsylvania on the rise — growing the economy, supporting students, strengthening public safety, lowering costs, creating jobs, and positioning Pennsylvania for long-term growth.

The Governor’s proposed budget places a special emphasis on affordability, cutting costs for Pennsylvanians across the energy and housing sectors; investing in public safety; spurring economic development; and advancing bipartisan solutions to support Pennsylvania students.

The 2026-27 budget proposal maintains a balanced budget, continues cutting taxes, and saves taxpayers millions of dollars while keeping Pennsylvania moving forward.

See the full announcement of Governor Shapiro’s 2026-27 budget proposal online.

Harrisburg, PA – Today, Governor Josh Shapiro presented his 2026–27 budget proposal to the General Assembly and the people of Pennsylvania — building on three years of historic progress by continuing to do what’s working across the Commonwealth to lower costs, create economic growth, strengthen public safety, support students, and continue Pennsylvania’s rise. The Governor’s budget proposal maintains fiscal responsibility, continues to cut taxes, and ensures taxpayer dollars are spent wisely.

“From day one, my Administration has been laser-focused on delivering results for the people of Pennsylvania — and what we’re doing is working,” said Governor Shapiro. “By listening to Pennsylvanians and working together, we’re solving problems and proving that government can be a force for good in people’s lives. This budget builds on the progress we’ve made by making smart, responsible investments that strengthen our schools, keep communities safe, and grow our economy. At a time when dysfunction and division seem to dominate elsewhere, here in Pennsylvania we’ve shown that we can still work together to get stuff done and build on what’s working — because Pennsylvania is on the rise.”

Since taking office, Governor Shapiro has made historic investments in education, strengthened public safety, raised wages for workers who care for Pennsylvania’s most vulnerable neighbors, and driven economic development that has created over 21,500 good-paying jobs and attracted more than $39 billion in private-sector investment across the Commonwealth. Under his leadership, Pennsylvania has increased education funding by nearly 30 percent, kept unemployment below the national average for 31 straight months, and become the only state in the Northeast with a growing economy. The Governor has cut taxes seven times — delivering relief for seniors, families, and small businesses — while making Pennsylvania more competitive and affordable.

At the same time, the Shapiro Administration has strengthened public safety by putting securing funding for nearly 2,000 additional police officers on the beat and expanding afterschool and community-based violence intervention programs. These efforts are delivering results — violent crime is down 12 percent statewide and fatal gun violence has dropped 42 percent, helping communities across Pennsylvania feel safer and more secure.

This progress has been anchored by a strong commitment to fiscal responsibility. Through the first seven months of the current fiscal year, Pennsylvania has collected $417 million above revenue projections  — reflecting an economy that is growing as a result of strategic investments made by the Shapiro Administration. This budget is balanced, does not raise taxes, and does not rely on any broad-based tax increase over the next five years, ensuring long-term stability while continuing to deliver results for the people of the Commonwealth.

Under Governor Shapiro’s leadership, the Commonwealth has earned two credit rating upgrades — saving taxpayers more than $200 million in borrowing costs — with benefits that extend to school districts and local governments that can now borrow at lower rates. By protecting the Rainy Day Fund, maintaining a balanced budget, and making smart, forward-looking investments, the Shapiro Administration is strengthening Pennsylvania’s financial foundation while continuing to deliver results for the people of the Commonwealth.

Part of that work also requires modernizing Pennsylvania’s revenue structure. The Governor’s budget proposal notes that regulating skill games and legalizing adult-use cannabis together could generate approximately $2 billion annually, providing long-term, recurring revenue to support schools, public safety, and taxpayer relief.

“This budget builds on real progress by staying focused on the people we serve,” said Lieutenant Governor Austin Davis. “I’ve had the privilege of meeting Pennsylvanians who are making their communities safer, teaching our youngest learners, and fighting for victims’ voices to be heard. This budget has their back — investing in afterschool programs, community organizations addressing gun violence, early childhood education and child care, and support for victims of crime. These investments will give every Pennsylvanian the tools to succeed today and build a stronger future.”

As the Governor begins his fourth year in office, the 2026–27 budget proposal builds on that momentum — continuing to invest in proven strategies, putting the people of Pennsylvania first, and positioning the Commonwealth for long-term growth.

Watch the Governor’s full budget address to a joint session of the House and Senate online and read the Governor’s full remarks as prepared for delivery.

See the full announcement of Governor Shapiro’s 2026-27 budget proposal.

Read more about the Governor’s 2026-27 budget proposal below, and you can read the full budget in brief.

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