July 2026 Pennsylvania GRAC Update

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For the fifth consecutive year, the Pennsylvania legislature has failed to pass a budget by the June 30th deadline required by the Commonwealth’s constitution. In April, the Democratic controlled State House passed Governor Shapiro’s (D) proposed $53.26 billion budget, a $2.72 billion increase over last year’s final spending. The nature of Pennsylvania’s divided government has led those in Harrisburg to a familiar disagreement, ultimately, how much to spend and how to pay for it.

On the political front Governor Shapiro is up for reelection this year facing off against current State Treasurer Stacy Garrity. Shapiro holds a significant fundraising advantage and is expected to win in November. Things are much less certain in the House and Senate contests. The Pennsylvania State House of Representatives is currently controlled by Democrats with a slim 102-member majority over their 101 Republican counterparts. The 50 member Senate is controlled by the Republicans by a 27 to 23 majority. Shapiro’s popularity combined with voter displeasure at the national level could have a major impact on state legislative races. Speculation is that D’s will increase their majority in the House and narrow or even take the majority in the Senate. The Dems have not controlled the House, Senate and Governorship in modern times.

If the hopes and prayers of legislators, staff, and lobbyists in Harrisburg are successful, the budget will be passed by mid-July, sending the legislators home to their districts for the summer to work toward a successful election. The House and Senate will both return for 9 legislative days in the fall before the midterms (Sept. 28–30, Oct. 5–7, and Oct. 19–21) and will return at different times in November following the results of the 3rd (House- Nov. 9 & 10) (Senate- Nov. 17 & 18) for leadership reorganization.