News Date: Monday, July 20, 2026
On July 12, Gov. Shapiro signed the general appropriations bill containing spending amounts for FY 2026-2027 budget
On Sunday, July 12, Gov. Josh Shapiro signed into law the Commonwealth’s General Appropriations Act and accompanying code bills for FY 2026–2027, which began on July 1. The enacted budget totals approximately $50.8 billion, representing a slight increase over the prior fiscal year and continuing a trend of rising state expenditures amid ongoing structural pressures.
To achieve balance, legislative leaders avoided reaching into the “Rainy Day Fund” by employing several accounting maneuvers including delayed payments to managed-care organizations within the Medical Assistance (Medicaid) program and redirecting more than $500 million from “special funds”. Furthermore, this budget provides for the expedited deployment of $775 million of Motor License Fund spending over the next two fiscal years directed to road and bridge projects across the commonwealth.
Larger policy issues such as how to regulate the so-called “skills games” in light of the Pennsylvania Supreme Court’s recent decision stating that skills games are subject to the commonwealths’ gaming statutes or increasing Pennsylvania’s minimum wage were not included in the final budget deal.
Legislators have until October 13, 2026 to act before skills games terminals become subject to seizure by law enforcement agencies and leaders have pointed to this issue possibly being addressed in this fall.
The final budget package includes the following key pieces of legislation:
While the FY 2026–2027 budget includes several targeted investments, many core county-administered programs once again received level funding or only modest increases, which, in the current fiscal environment, effectively amounts to a reduction in funding due to inflationary and operational cost pressures.
Notable investments in the final budget include:
Key county programs that remain flat funded or underfunded include:
To achieve balance, legislative leaders avoided reaching into the “Rainy Day Fund” by employing several accounting maneuvers including delayed payments to managed-care organizations within the Medical Assistance (Medicaid) program and redirecting more than $500 million from “special funds”. Furthermore, this budget provides for the expedited deployment of $775 million of Motor License Fund spending over the next two fiscal years directed to road and bridge projects across the commonwealth.
Larger policy issues such as how to regulate the so-called “skills games” in light of the Pennsylvania Supreme Court’s recent decision stating that skills games are subject to the commonwealths’ gaming statutes or increasing Pennsylvania’s minimum wage were not included in the final budget deal.
Legislators have until October 13, 2026 to act before skills games terminals become subject to seizure by law enforcement agencies and leaders have pointed to this issue possibly being addressed in this fall.
The final budget package includes the following key pieces of legislation:
- Act 1A of 2026: FY 2026–2027 General Appropriations – outlines total state expenditures
- Act 21 of 2026: Fiscal Code – provides direction on how appropriated funds are distributed and authorizes program implementation
While the FY 2026–2027 budget includes several targeted investments, many core county-administered programs once again received level funding or only modest increases, which, in the current fiscal environment, effectively amounts to a reduction in funding due to inflationary and operational cost pressures.
Notable investments in the final budget include:
- Dedicated funding for 988 and crisis walk-in centers
- Increased support for intellectual disabilities and autism services
- Targeted investments in long-term care and workforce-related initiatives
- Ongoing support for economic development programs
Key county programs that remain flat funded or underfunded include:
- County mental health base funding (+$40 million requested)
- Indigent defense funding ($7.5 million)
- Election administration support, including Act 88 funding ($45 million)