Shapiro Unveils Record $53.3 Billion Budget Proposal

Pennsylvania governor's plan includes new funding for housing, infrastructure, and education

Feb. 3, 2026 at 7:23pm

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Pennsylvania Governor Josh Shapiro (D) has unveiled a record $53.3 billion budget proposal for the 2026-27 fiscal year, an increase of $2.7 billion from the previous year's record. The proposal includes $100 million to hedge against potential federal cuts, $1 billion in new funding for housing and infrastructure, and $50 million increases for both basic and special education funding. Shapiro also wants to create new rules for incoming data centers and eliminate cellphones in schools. However, the budget proposal has faced criticism from Republican lawmakers, who are calling out the record price tag.

Why it matters

Shapiro's budget proposal reflects his priorities for the state, including investing in education, infrastructure, and economic development. The proposal's large price tag and some of its more controversial elements, such as the push for a window for survivors of sexual abuse to sue, are likely to spark heated debates in the state legislature.

The details

Shapiro's budget proposal includes $100 million to hedge against potential federal cuts, $1 billion in new funding for housing and infrastructure, and $50 million increases for both basic and special education funding. The governor also wants to create new rules for incoming data centers, including requirements that they create or pay for their power needs, hire Pennsylvania workers, follow environmental standards, and be transparent. Additionally, Shapiro's proposal includes a plan to eliminate cellphones in schools and mandated recess.

  • Shapiro unveiled the $53.3 billion budget proposal during his annual budget address on February 3, 2026.
  • Lawmakers have until June 30, 2026, to pass a budget, something that did not happen until the fall of 2025.

The players

Josh Shapiro

The Democratic governor of Pennsylvania who unveiled the record $53.3 billion budget proposal.

Kim Ward

The Republican State Senate President Pro Tempore who criticized Shapiro's budget proposal.

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What they’re saying

“Too many of these projects have been shrouded in secrecy, with local communities left in the dark about who's coming in and what they're building. That needs to change, and it will.”

— Josh Shapiro, Governor (abc27.com)

“Stop tying justice for abused kids to your pet political projects. Start listening to victims. Listen to the victims.”

— Josh Shapiro, Governor (abc27.com)

“If Shapiro was sincere about protecting victims of abuse, he should return campaign funds from a donor allegedly on the 'Epstein List'.”

— Kim Ward, State Senate President Pro Tempore (abc27.com)

What’s next

Lawmakers have until June 30, 2026, to pass a budget, something that did not happen until the fall of 2025.

The takeaway

Shapiro's budget proposal reflects his priorities for the state, including investing in education, infrastructure, and economic development, but the large price tag and controversial elements are likely to spark heated debates in the state legislature.