Pennsylvania Gov. Josh Shapiro, a Democrat, unveiled his 2025-26 budget plan on Feb. 4 in his third budget address to Pennsylvanians.
“Pennsylvania is on the rise, and we’re not gonna stop,” Shapiro said in his address. “We have the resources we need to make smart investments now and maintain a responsible balance in reserve.”
Shapiro focused part of his address on education. The Pennsylvania legislature is under a state supreme court order to fix the funding of its public schools, which was deemed unconstitutional almost exactly two years ago.
His budget would continue investing in student teacher stipends for college students who agree to stay in Pennsylvania for the beginning of their career, increasing funds for mental health in public schools and investing in special education programs.
“What we’re doing for education is working,” Shapiro said. “Let’s continue to build on this foundation we’ve laid.”
Shapiro also touched on energy investments and regulation of skill games, as well as the price of prescription drugs. He also called for the legalization of adult-use cannabis, or marijuana. Shapiro said as a father and as the former state attorney general, calling for the legalization of marijuana was hard for him, but he took time to study its impacts.
“Letting this business operate in the shadows doesn’t make sense, and by doing nothing, we’re making Pennsylvania less competitive,” Shapiro said. “Besides, let’s not kid ourselves. Pennsylvanians who want to buy cannabis are just driving across the border to one of our neighbors.”
New York, New Jersey, Delaware and Maryland have all legalized recreational marijuana use.
Under Shapiro’s proposal, Pennsylvania could also join its neighbors in raising the minimum wage above the federal floor. All of the states that neighbor Pennsylvania have a higher minimum wage than $7.25, ranging from $8.75 in West Virginia to $15 in New Jersey and New York.
Shapiro proposed raising Pennsylvania’s minimum wage to $15.
Also included in Shapiro’s budget is funds for future events in Pennsylvania, including the 2026 National Football League (NFL) draft (Pittsburgh), games in the 2026 Fédération Internationale de Football Association (FIFA) World Cup (Philadelphia) and the 2026 Professional Golfers’ Association (PGA) Championship (Philadelphia).
Notably missing from the budget address was a proposal for money for school vouchers, also known as Lifeline scholarships. School vouchers is a program that allows students from disadvantaged public schools to attend a private school of their choosing while the state foots the tuition bill.
In the last two years, Shapiro has tried and failed to push vouchers through. Although he has Republican support in the Senate, Democrats have held a slim majority in the state House.
Shapiro’s budget includes dipping into the rainy day fund, excess funds from previous years, for about $4.5 billion. To save money, Shapiro proposed shuttering two state correctional facilities, to save a projected $100 million a year.
The legislature has until the June 30 deadline to pass the budget, although the past two years have resulted in an impasse and the budget has been passed after the deadline. Visit pa.gov for a budget overview created by Shapiro’s team.
