Shapiro pitched the state should address the deficit by creating new revenue streams, including recreational marijuana and so-called skill games, as well as tapping into $1.6 billion in savings.

This was Shapiro’s 3rd budget address, kicking off the second half of his four year term. With re-election in 2026, and a potential presidential run in 2028, what the Montgomery county native can accomplish in these next two years will set the stage for those campaigns.

Gov. Josh Shapiro on Tuesday delivered a $51.5 billion budget proposal for the 2025-2026 fiscal year that he touted as a plan for Pennsylvania “on the rise.” It includes new investments in public education, health care, workforce, economic development and transportation.