What Happened: Pennsylvania lawmakers returned to Harrisburg the weekend of July 10 and passed a $50.8 billion budget, ending an impasse that stretched past the June 30 constitutional deadline. Gov. Shapiro quickly signed it.
By the Numbers: Spending is up $1.8 billion over the prior fiscal year, but the package doesn’t rely on new revenue sources or draw from the Commonwealth’s $8 billion Rainy Day Fund. Instead, it balances by:
- Delaying $2.6 billion in payments to Medicaid managed care organizations and Community HealthChoices.
- Using $2 billion in special fund transfers.
What’s Inside: Economic development and workforce initiatives feature prominently.
- The new Foundations in Industry Training Program funds employer training up to $3,000 per worker per year, for up to three years.
- New Keystone Opportunity Expansion Zones target blighted residential property, new residential construction, and mixed-use development.
- Innovate in PA 2.0 tax credits, $125 million in insurance-premium-tax credits backing Ben Franklin Technology Partners’ venture funds, and additional life sciences and biotech grants.
- A $5 million boost for Child Care Worker Retention and Recruitment.
Energy & Data Centers: Data centers must now report water and energy use to DEP, and municipalities can impose temporary moratoriums on new data center development while updating zoning. Utilities and pipeline owners must give advance notice when alternative transmission technologies could boost line capacity.
Roads & Troopers: The budget adds a design-build best-value procurement option for Turnpike projects, reverses the phaseout of State Police funding from the Motor License Fund (now $375 million, a $125 million increase), and directs PennDOT to deploy $775 million over two years to accelerate highway improvements (including $500 million in FY 2026-27) while waiving local match requirements for the Multimodal Transportation Program.
What They’re Saying: Gov. Shapiro touted the bipartisan result: “In a divided legislature, we’ve proven time and again that Democrats and Republicans can come together to get stuff done for the good people of Pennsylvania — cutting taxes, investing in education and workforce development, and keeping the economy growing. By listening to Pennsylvanians and working together, we’re solving problems and building on the last three years of real progress.”
Go Deeper: Read the Governor’s announcement or contact the Harrisburg Regional Chamber with your specific questions.