The $50.8 billion budget deal does not raise taxes and invests $11.8 billion in education, as well as
The bill was signed 12 days after its June 30 deadline, but is also being celebrated for being a bipartisan compromise. Gov. Josh Shapiro signed Pennsylvania's 2026-2027 budget into law after both chambers of the legislature passed the agreement on Sunday.
Shapiro's office called the bill bipartisan, and members of both parties celebrated its passage on social media. At a signing ceremony on Sunday, Shapiro said the bill will allow for $50.8 billion in spending while not raising taxes. The bill will also not touch the Commonwealth's $8 billion rainy day fund. State Rep.
Tarik Khan, whose district covers parts of Philadelphia and Montgomery County, said the bill will increase spending in Philadelphia's public schools, as well as more support for Medicaid and the first pension payment increases for retired police officers, firefighters, teachers and other state employees in more than 20 years. Lt. Gov. Austin Davis celebrated the bill as well, saying,"This bipartisan budget will continue to grow our economy, creating ladders of opportunity and making life more affordable for Pennsylvania families.
" "Today’s budget is a reasonable compromise. It reins in spending compared to the governor’s original proposal while making meaningful investments in career and technical education, mental health, infrastructure, and public safety. Just as importantly, it builds on the pro-growth policies we fought for last year that are already delivering results: Stronger revenues, energy reforms, and permitting improvements that have put PA in a better fiscal position than many expected.
PA’s future depends on continuing to grow our economy, attract investment, and create jobs to keep moving the Commonwealth in the right direction. "
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