Malagari highlights wins for Montco families in 2026-27 state budget
$50.8 billion budget delivers for healthcare, education and working families without raising taxes
Rep. Steve Malagari July 13, 2026 | 3:13 PM
LANSDALE, July 13 – State Rep. Steve Malagari (D-Montgomery) announced today that Pennsylvania's newly enacted 2026-27 state budget delivers significant investments for Montgomery County families – all without raising taxes or drawing down the state's Rainy Day Fund. The $50.84 billion budget, a 3.7% increase over the prior year, includes new investments to support education, affordability, infrastructure and businesses across the commonwealth.
"Our state budget is our priorities list, and this budget reflects what I hear from families across our community every day – taking steps to address the cost of healthcare, the cost of raising kids and making sure our schools and small businesses have what they need to thrive," said Malagari. "I'm proud of what we got done this year for the people and businesses that call Pennsylvania home."
BUDGET HIGHLIGHTS:
Affordability:
- No new taxes, with the budget balanced while keeping the state's $7.74 billion Rainy Day Fund untouched.
- Continued funding for the Farmers' Market Food Coupons and State Food Purchase Programs, supporting families and seniors.
- Finally delivering a cost of living adjustment to pre-Act 9 retirees, including teachers, police officers and firefighters, a change Malagari has been fighting to implement for over four years.
Healthcare:
- A $615 million increase in Medical Assistance (Medicaid) managed care funding and an 11% increase to the Fee-for-Service program, strengthening care options amid federal funding uncertainty.
- A $41.2 million increase for mental health services, including $10 million dedicated to the 988 crisis line and new crisis stabilization walk-in centers.
- A 6.1% increase for the Children's Health Insurance Program (CHIP).
- Nearly double the funding for the Rape Crisis program, representing a major investment in resources for victims.
Education:
- Increases to both Basic Education Funding and Special Education Funding, with over $10 billion in total state investment in education.
- A $40 million investment to fully fund the student teacher stipend program.
- A rise in the maximum PHEAA state grant to $6,000, helping college students and their families cover the costs of their education.
- A 20% increase to the Child Care Worker Recruitment and Retention Program, addressing staffing shortages that have made child care harder to access.
- $825 million in increased funding for Pre-K Counts and Early Intervention services for Pennsylvania's youngest learners.
Local Business & Infrastructure:
- A funding increase of 75% for the PA SITES program, helping businesses that want to set up shop in PA get shovels in the ground more quickly.
- A $300 million (46%) increase in Highway and Safety Improvement funding to help keep all road users safe and keep goods and people moving.
- $38 million for Pennsylvania First and $20 million for Main Street Matters, supporting small businesses and downtown revitalization in communities like ours.
"This is a budget that puts people first," Malagari said. "From strengthening healthcare to investing in our schools and supporting local businesses, we're delivering real results for the families who sent us to Harrisburg to work for them."