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Gov. Josh Shapiro proposes $53.3B budget as Harrisburg prepares for midterm elections

Governor Shapiro's $53.3 billion budget targets education, transit, and economic growth, proposing $565 million for underfunded schools and $300 million for public transportation.

  • At the Capitol on Thursday, Gov. Josh Shapiro unveiled a $53.3 billion budget, seeking $3.5 billion from the Rainy Day Fund and prioritizing education and transit.
  • Positioning the budget as a political platform, Shapiro emphasized $50 million more for basic education, $50 million for special education, and a $100 million transfer for federal disruptions, ahead of the 2026 midterms.
  • Major spending items include a $1 billion four‑year infrastructure fund, $300 million for public transportation agencies, and $2 billion from a 52% tax on skill games and 40,000 machines.
  • Facing opposition, the proposal faces headwinds in the Republican-led state Senate and must meet the June 30 deadline after last year's late negotiations; Sen. Scott Martin warned, `The moment we start draining that, we'll be downgraded.'
  • Shapiro proposed raising the minimum wage to $15, saying it would reduce Medicaid costs by $300 million annually, while also boosting transit funding by 1.75% more sales tax next year and enforcing stricter data center developers and environmental standards.
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GoErie broke the news in on Tuesday, February 3, 2026.
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