Pugh: State Budget Delivers on Key Initiatives Without Raising Taxes

July 12, 2026

HARRISBURG, PA - State Rep. Brenda Pugh (R-Luzerne) today is offering her comments on the passage of the 2026-27 fiscal year $50.8 billion spending plan.

"A well-planned state budget is a roadmap for stability, one that helps communities grow stronger and creates opportunities for everyone," Pugh said. "This state budget is not perfect, but there are numerous investments that will strengthen public safety, expand educational opportunities, support our retired teachers and public servants, improve infrastructure, and ensure safer and more modern school environments. Last year we fought for change, and because of that fight, we ended the fiscal year with $1 billion more in revenue than expected.

"The spending plan for 2026-27 is $2.5 billion less than the spending plan Gov. Josh Shapiro proposed earlier this year. That reduction is largely the result of shifting significant costs into the following fiscal year rather than true savings. Even so, the budget does not raise taxes, nor does it draw down the Rainy Day Fund."

Highlights for Pennsylvania taxpayers and businesses include:

• School safety, student protections and education programs. The budget invests $10 million for career and technology education (CTE) centers to eliminate the waiting list for students, preserves the popular Earned Income Tax Credit (EITC) scholarship program for students, and requires all school entities to update existing bullying policies to explicitly include cyberbullying and incorporate these provisions into their student conduct codes.
• Retirement adjustments without burdening school districts. The budget provides a long overdue cost-of-living adjustment to teachers, municipal police officers and firefighters who retired prior to 2001, addressing decades of inflation erosion without impacting current school district budgets.
• Funding for rural roads and bridges. Funding in the amount of $775 million will be available for shovel-ready rapid deployment projects.
• Healthcare, long-term care and disability services. The budget strengthens health services, increases funding for LIFE Program and statewide autism intervention and support services.
• No delay in CNIT reduction. With the Corporate Net Income Tax (CNIT) reductions remaining on schedule, Pennsylvania will remain competitive with our neighboring states.

"The 2026-2027 budget reflects continued fiscal discipline and long term investment. With strengthened protections for students, targeted support for retirees, expanded safety programs and sharp attention to infrastructure and community needs, the Commonwealth continues to build a stable and forward looking future, with many provisions providing direct benefit to residents throughout Northeast Pennsylvania," Pugh concluded.

Representative Brenda Pugh
120th District
Pennsylvania House of Representatives