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Shapiro Signs $50.8B State Budget Amid Praise, Barbs

The plan adds more than $900 million for education and keeps the state’s nearly $8 billion rainy day fund intact, officials said.

  • On Sunday, Gov. Josh Shapiro signed a $50.8 billion state budget into law after both legislative chambers approved the spending plan nearly two weeks past the June 30 statutory deadline.
  • This marks the commonwealth's fifth consecutive late budget, requiring significant concessions from both parties. Senate Appropriations Chairman Scott Martin noted that while the final product contains positive measures, both sides accepted compromises they preferred to avoid.
  • The budget directs an additional $565 million toward school districts experiencing historic underfunding, part of a broader $900 million education investment. Senate Minority Leader Jay Costa defended the spending, saying it allows struggling districts to "lift themselves up."
  • Rep. Brad Roae called the spending plan "very terribly irresponsible," citing accounting maneuvers that delay $1.3 billion in Medicaid payments. The final agreement omits Shapiro's proposals for recreational marijuana legalization and skill games taxation.
  • Unresolved issues including public transit funding and affordable housing remain ahead of November's election, when voters will determine if Democrats secure a legislative majority. That shift could dictate future policy fights on data center regulation and cannabis legalization.
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Star Local broke the news on Saturday, July 11, 2026.
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