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.

Pennsylvania Gov. Josh Shapiro on Tuesday delivered his 2025-26 budget proposal to lawmakers. His plan seeks more money for the poorest public school districts, while emphasizing frugality and pushing for legalized marijuana.