Last week, Governor Josh Shapiro presented his proposed state budget to the General Assembly. Its central focus is addressing the impact of rising costs on Pennsylvania families. From housing and utilities to childcare and transportation, too many households are feeling stretched thin. His proposal is built around easing those pressures by strengthening paychecks, lowering everyday costs, and making practical investments that help families stay on solid footing. Governor Shapiro commented, “I know Pennsylvanians are feeling the pinch of rising costs… trips to the grocery store cost more, our utility bills keep going up, and for so many, the American dream of owning a home no longer feels possible.”
One of the most significant components of the budget is a proposal to finally raise Pennsylvania’s minimum wage to $15 an hour. While the House has passed multiple proposals to raise the wage, the Senate has refused to approve any of the bills from the previous and current sessions we’ve sent over, nor have they proposed their own solution.
Our state’s minimum wage has been stuck at $7.25 for nearly two decades, even as every neighboring state has taken action. During his address, Governor Shapiro noted, “it’s been 7,150 days since Pennsylvania last passed legislation to raise the minimum wage, and that’s hurting over half a million workers.” Since 2009, the purchasing power of the minimum wage has decreased 30%. You may recall that I have spoken on this matter before and have noted that we are far behind from our neighboring states, including West Virginia and Ohio, in raising the minimum wage. Raising the minimum wage would help the economy by bringing in an estimated $80 million in increased revenue.
Raising the wage would put more money in workers’ pockets to cover essentials like rent, groceries, and transportation, it would create less reliance on benefits like SNAP and Medicaid, while also strengthening local economies as those dollars are spent close to home. Currently, there are 61,000 workers who rely on Medicaid in the commonwealth and earn less than $15 an hour. Should the minimum wage be raised, it would allow the commonwealth to reduce reliance on public assistance and save an estimated $300 million in the first full year in Medicaid payments alone.
The budget also continues the Working Pennsylvanians Tax Credit, which provides targeted tax relief to nearly one million working families. This year alone, the credit will return nearly $200 million to households across the Commonwealth. As the Governor emphasized, this initiative is about “putting money back in the pockets of working Pennsylvanians struggling to get by without raising broad-based taxes.”
Housing affordability is another major concern this budget seeks to address. For many families, rent and housing-related fees have become one of the largest monthly expenses. Currently, more than one million households spend over 30% of their income on housing. Governor Shapiro warned that “home prices and rents are rising faster than wages, and if we don’t take action now, we’ll be short 185,000 homes by 2035.” The proposal includes reforms aimed at capping excessive rental application fees, strengthening renter protections, and encouraging the construction of new housing to reduce costs and increase supply.
To strengthen housing coordination and accountability, the reforms include creating a Deputy Secretary for Housing at the Department of Community and Economic Development (DCED) to coordinate housing policy, oversee implementation of a Housing Action Plan, develop a digital one-stop shop for housing resources, and share model land-use ordinances and best practices with municipalities.
The Governor explicitly referenced my House Bill 1250, and I am hoping having him support the bill will help get it to his desk! HB 1250 has not seen further action since the House sent the bill to the Senate and has remained in the Urban Affairs & Housing Committee. If you are a resident of a manufactured home community and have been significantly impacted by the rising costs, I still urge you to contact your Senator and urge them to support this bill.
Energy and utility costs are another area where families have felt real strain. The budget includes steps to stabilize costs, improve consumer protections, and hold utility companies accountable. As Governor Shapiro explained, “together, these steps will save Pennsylvanians over $500 million on their energy bills every year.” These investments are designed to keep utility bills manageable while ensuring reliable and resilient energy systems.
The proposal also includes long-term, stable funding for public transportation systems across Pennsylvania. More than a million residents rely on public transit to get to work, school, medical appointments, and other daily needs. The current funding mechanisms aren’t sustainable. As the Governor said, “mass transit helps drive our economy. This is an issue of economic competitiveness.” Reliable transit helps families avoid the high cost of owning and maintaining a car and keeps communities connected.
Throughout the proposal, there is a strong focus on fiscal responsibility and protecting taxpayer dollars. The budget emphasizes efficiency, modernization of state systems, and careful stewardship of public funds. Governor Shapiro highlighted that the commonwealth has already collected hundreds of millions more in revenue than projected and improved its bond rating twice, proof that “what we’re doing, together, is working.”
At its core, this budget reflects the everyday concerns people raise around kitchen tables and in community groups. It focuses on the cost of living, the size of a paycheck, and the basic services families rely on. As budget negotiations continue in the months ahead, I will work with my colleagues to push for a final agreement that delivers relief for our community.
As always, if you have questions or need assistance with a state-related matter, please do not hesitate to contact my office.