Investment in Economic Development and Public Safety
In regards to economic development, the Commonwealth is investing in downtowns while also seeking to enhance the business climate to drive more investment from the private sector. Funding remains constant for the Main Street Matters grant program at $20 million. An additional $26.5 million has been allocated to “Community and Economic Assistance,” under the Department of Community and Economic Development, which facilitates state assistance for projects in the public interest.
The emerging trend toward facilitating an improved business environment can be seen with the lowering of the Corporate Net Income Tax (CNIT) rate, and increasing net operating loss deductions for small businesses. Additionally, the budget includes a $15.8 million increase to hire staff to support DEP’s Streamlining Permits for Economic Expansion and Development (SPEED) program – which was created in last year’s budget. The Shapiro Administration will also continue to push out $500 million in site development funding secured in the 2024-25 budget to attract major companies, create jobs, and grow the economy. The budget invests in workforce development broadly, including increased funding for career and technical education, apprenticeships, and vocational training. The combination of sustained grants for downtown revitalization and aggressive site development funding gives municipalities concrete tools to attract private investment and expand their local tax base. Furthermore, the targeted funding for the DEP’s SPEED program and workforce development addresses two persistent pain points: slow permitting that stalls projects, and the critical need for a skilled local workforce to fill new jobs.
Social Safety Net and Community Supports
The budget expands support for older adults and vulnerable populations — including boosting services for seniors via Area Agencies on Aging, and increased support for food assistance programs. For many lower- and middle-income households in the region, this may mean better access to essential services, support for disabilities or aging, and some ease on household budgets, especially as federal programs shift. To further support lower- and middle-income households, the budget establishes the Working Pennsylvanians Tax Credit (WPTC). This new state-level credit, modeled after the federal Earned Income Tax Credit (EITC), will provide tax relief starting with the 2026 tax filing season (for the 2025 tax year). The credit is equal to 10% of the federal EITC amount, with a maximum state credit of $805. Increased state funding for senior services and food assistance helps alleviate the burden on municipal and nonprofit social support systems. The WPTC is a welcome measure to improve the financial stability of local residents, which ultimately contributes to a stronger, more resilient community.
Support for Public Safety
Budget allocation doubled for disaster-response funding from $20 million to $40 million, in response to changes at the federal level. Another $5 million bump to the Commonwealth Disaster Recovery Assistance Program will increase direct support to impacted Pennsylvanians. State police will get an additional $69.3 million for operations, enough to fund four new cadet classes to increase its ranks. This staffing is critical for the 1,279 municipalities that don’t have police departments and rely solely on troopers for their law enforcement needs. The budget also renews funding for 911-service support (via phone surcharge) to help counties / municipalities cover 911 system costs.