Governor Josh Shapiro’s 2025-26 budget for Pennsylvania emphasizes tax relief for working families, support for the agricultural sector, investments in child care, and major private-sector economic development projects. Since signing the budget into law, Shapiro has toured the state to highlight its impacts, underscoring progress made over his administration’s first three years.
A centerpiece of the budget is the new Working Pennsylvanians Tax Credit (WPTC), which will deliver $193 million in relief to over 940,000 residents beginning next tax season. Modeled after the federal Earned Income Tax Credit (EITC), the WPTC provides a 10% match, automatically benefiting anyone qualifying for the federal credit. This marks the seventh tax reduction enacted under Shapiro’s leadership.
The budget also allocates $10 million for the Ag Innovation Grant and fully funds the Pennsylvania Farm Bill, reinforcing support for the state’s top industry. Shapiro highlighted these investments during appearances at the Pennsylvania Farm Bureau’s 75th anniversary and at Camp Out for Hunger in Philadelphia, emphasizing food security and rural development.
To address a shortage of 3,000 child care workers, the budget includes $25 million for a recruitment and retention program offering $450 bonuses per employee, benefiting around 55,000 workers. An additional $7.5 million will stabilize wages for Pre-K educators, and $10 million is allocated for Early Intervention services. Leaders such as Valerie Hamilton of Children of God Educational Services praised the move, calling child care providers “the workforce behind the workforce.”
Two major private investments were announced under the state’s economic development strategy. First Quality Retail Services will invest $142.2 million to expand manufacturing in Mifflin County, creating jobs and boosting local production. US Durum Products LTD, the nation’s leading couscous manufacturer, will invest over $8 million to relocate from Lancaster County to Harrisburg, enhancing regional manufacturing capacity.
Business and community leaders across Pennsylvania have voiced support. Chris Hoffman of the Pennsylvania Farm Bureau commended the Ag Innovation Grant, while Heidi Neuhaus of United Way highlighted the tangible benefits of the new tax credit for low-income families. House Speaker Joanna McClinton and Senator Patty Kim emphasized the budget’s role in countering economic pressures faced by working households.
Education and workforce advocates, including Madison Peneguy, a high school student working in child care, expressed optimism that the incentives will make the field more sustainable for future generations. Industry representatives like Alex Halper of the PA Chamber of Business and Industry noted that child care access remains a barrier to workforce participation, underscoring the broader economic importance of the investment.
Regional economic alliances, including the York County Economic Alliance and Focus Central Pennsylvania, praised the manufacturing expansions as catalysts for long-term growth. Said Chergui, CEO of US Durum, thanked the Shapiro administration for facilitating the company’s move to Harrisburg.
The budget has drawn media attention across outlets such as the Philadelphia Inquirer, PennLive, and WESA, with coverage focusing on tax relief, food security, and job creation. Shapiro’s administration continues to promote the budget as a bipartisan achievement that strengthens economic opportunity and quality of life across the Commonwealth.
— news from PA Department of Community & Economic Development (.gov)
— News Original —
26 Budget, Governor Shapiro Highlights Investments in Agriculture, Tax Cuts for Working Families, Support for Child Care Workforce, and New Economic Development Wins Across Pennsylvania
“Over the last three years, Governor Shapiro has promised that he would continue to be committed to serving agriculture and to keep Pennsylvania’s top industry strong. That commitment was reflected in the 2025-26 budget…” n
“The Working Pennsylvanians Tax Credit is a real win for Pennsylvanians — it puts more money back in the pockets of working families who need it at a time when costs keep rising.” n
“Governor Shapiro understands that child care is essential to Pennsylvania’s economy, and this budget reflects that understanding. These new recruitment and retention bonuses will help stabilize this field and strengthen communities across the Commonwealth.” n
“This investment brings modern equipment, expands local manufacturing in the heart of our region, and helps protect and grow family-sustaining jobs. Projects like this strengthen our local economy and show what’s possible when we support homegrown businesses and workforce development. n
Harrisburg, PA – In the week since signing the 2025-26 budget into law, Governor Josh Shapiro has traveled across Pennsylvania to highlight how the new state budget delivers for working families, grows the Commonwealth’s economy, tackles workforce shortages, and keeps Pennsylvania competitive. n
From increasing funding for Pennsylvania farmers and strengthening food security, cutting taxes for nearly one million working Pennsylvanians, investing in the child care workforce, and announcing major economic development projects — Governor Shapiro has made clear that Pennsylvania is on the rise and that this budget builds on two years of progress to keep it moving forward. n
Supporting Farmers, Strengthening Food Security & Investing in Agriculture n
In Philadelphia, Governor Shapiro joined WMMR’s Preston & Steve Show and volunteers at Camp Out for Hunger, highlighting the budget’s historic food security investments. In Hershey, he spoke at the Pennsylvania Farm Bureau’s 75th Anniversary Banquet about how his Administration is delivering for farmers and rural communities. n
Cutting Taxes for Nearly 1 Million Working Pennsylvanians n
Governor Shapiro, Lt. Governor Davis, Revenue Secretary Pat Browne, and legislative and community leaders visited Widener University Commonwealth Law School’s tax clinic to highlight the new Working Pennsylvanians Tax Credit (WPTC) created in the 2025-26 budget. This is the seventh tax cut Governor Shapiro has enacted in three years. n
The WPTC will deliver $193 million in tax relief to more than 940,000 working Pennsylvanians beginning next tax season. Modeled after the federal Earned Income Tax Credit, it equals 10 percent of the federal credit, and anyone who qualifies for the federal EITC will automatically receive the state credit. Here is a county-by-county breakdown of how many working Pennsylvanians will benefit from the new tax credit. n
Strengthening the Child Care Workforce & Expanding Access n
Governor Shapiro and Human Services Secretary Dr. Val Arkoosh visited Children of God Educational Services in Bucks County to highlight budget investments addressing child care workforce shortages. Pennsylvania currently has 3,000 unfilled child care jobs. This budget includes $25 million for a Child Care Staff Recruitment and Retention Program, providing a $450 bonus per employee to support 55,000 workers; $7.5 million for Pre-K Counts to stabilize wages for early educators and $10 million for Early Intervention services. The Governor’s Advisory Commission on Women also hosted a virtual discussion between business and government leaders and child care advocates about Pennsylvania’s child care crisis. n
Announcing Major Economic Development Projects n
Continuing to build momentum behind the Commonwealth’s first Economic Development Strategy in nearly two decades, Governor Shapiro announced two significant private-sector investments: First Quality Retail Services will invest $142.2 million to expand manufacturing operations in Mifflin County and US Durum Products LTD, the nation’s leading couscous manufacturer, will invest more than $8 million to relocate and expand into Harrisburg. These projects underscore Pennsylvania’s growing competitiveness as a place where businesses want to invest, expand, and hire. n
Here’s what elected leaders from across the Commonwealth are saying about the 2025-26 budget: n
Chris Hoffman, Pennsylvania Farm Bureau President: “We are truly excited to have Governor Shapiro with us to help us celebrate our 75th anniversary. Over the last three years, Governor Shapiro has promised that he would continue to be committed to serving agriculture and to keep Pennsylvania’s top industry strong. That commitment was reflected in the 2025-26 budget with the $10 million dedicated to the Ag Innovation Grant, while fully funding the Pennsylvania Farm Bill. We are extremely grateful for his partnership in helping to advance Pennsylvania agriculture.” n
Heidi Neuhaus, Director of the Volunteer Center, United Way of the Capital Region: “I’ve seen firsthand how meaningful the federal Earned Income Tax Credit is for the clients we serve. I’m honored to stand with Governor Shapiro as we highlight a brand-new, state-level Earned Income Tax Credit that was just signed into law. This credit will help nearly a million Pennsylvanians and put more money back into the pockets of the working individuals and families we support every day. Our volunteers were proud to testify before the House Finance Committee in favor of creating a state-level credit, and we are eager to see the positive impact it will have in communities across the Commonwealth. We are grateful to Governor Shapiro and his Administration for making this a priority.” n
Karen Showalter, Senior Director, MomsRising: “We know this tax credit will make a real difference because we hear it from our members every day, in every corner of the state. So many of them tell us that even though they’re working hard and caring for their families, they still can’t get ahead. More and more are juggling paid work while also caring for young children or aging parents — often both — and struggling to keep everything afloat. Programs like this provide meaningful relief. One of our members in Pittsburgh, a single mom, told us, ‘An extra $700 isn’t just a number on paper — it’s groceries that stretch a little further, gas in the tank without holding my breath at the pump, and the kind of breathing room that keeps the lights on and the stress down.’” n
House Speaker Joanna McClinton: “As the Trump Administration drives up prices for the average family, we’re responding with policies to help Pennsylvania’s working families save more of their hard-earned income. I am proud to have steered the Working Pennsylvanian Tax Credit through the House twice this year, because it is good for everyone — saving people money while boosting local economies and helping small businesses.” n
Senator Patty Kim: “I am so honored to have voted for this tax credit — it is truly essential. As many of you know, we recently went through a SNAP snafu and saw far too many working families struggling. In the midst of that darkness and uncertainty, Governor Shapiro fought hard to protect them, and we’re grateful for that leadership. Now it’s our turn as a state to step up, do our part, and give something back to the people who are working to feed their families.” n
Representative Christina Sappey: “All across Pennsylvania, working families are doing everything they can to make ends meet. Many are dual-income households earning modest wages, juggling rent or mortgage payments, child care, health care and everyday essentials. When those basic costs outpace paychecks, families struggle — and our entire economy feels the impact. This new tax credit will support working families and benefit our economy.” n
Representative Justin Fleming: “The Working Pennsylvanians Tax Credit is a real win for Pennsylvanians — it puts more money back in the pockets of working families who need it at a time when costs keep rising. Most Pennsylvanians living in poverty are children, and one of the best ways to secure their future is by making smart, targeted investments like this tax cut that support families and strengthen local economies.” n
Valerie Hamilton, Founder and Executive Director of Children of God Educational Services: “Today, we are celebrating a truly monumental investment in child care. Child care providers are the workforce behind the workforce. They deserve competitive wages, families deserve affordable, high-quality care, and our children deserve safe, nurturing places to learn and grow. Governor Shapiro understands that child care is essential to Pennsylvania’s economy, and this budget reflects that understanding. These new recruitment and retention bonuses will help stabilize this field and strengthen communities across the Commonwealth.” n
Madison Peneguy, a senior at Bristol High School who works at Children of God: “I’ve been working in child care for over a year, and even as a high school student, I know how important this work is. My mom has worked in child care for nearly 16 years, and while I’ve always wanted to follow in her footsteps, the low wages in this field have made me hesitant. This new recruitment and retention incentive gives me hope for the future — it makes me excited to stay in this career and keep growing in it. The children I work with brighten my day, every day. I appreciate Governor Shapiro for recognizing how hard we work and making this field a priority.” n
Senator Steve Santarsiero: “Affordability is the throughline of our new budget in Pennsylvania. As working families face higher costs, we are working to lower their tax bills, provide greater support for childcare programs, and make sure people in Pennsylvania have access to fresh and healthy food.” n
Representative Tina Davis: “It takes a village to raise a child — and our child care workers, teachers, and caregivers are the heart of that village. I’m grateful to them for the essential work they do every day, and I’m grateful to Governor Shapiro and Secretary Arkoosh for working tirelessly to deliver a budget that truly supports working families. The Governor never gave up — this bipartisan, compromise budget delivers real results for the people of Pennsylvania.” n
Cara Ciminillo, Executive Director of Trying Together: “Ensuring affordable, high-quality child care depends on bold, ongoing investment in the educators who power our Commonwealth. Early educators are the workforce behind every thriving community. By continuing to invest in them, Pennsylvania can strengthen its economy, support families, and build a child care system that positions our state for long-term prosperity.” n
Alex Halper, Senior Vice President of Government Affairs for the PA Chamber of Business and Industry: “Employers throughout the Commonwealth continue to struggle finding workers and child care access is a barrier preventing many Pennsylvanians from entering the workforce. Lawmakers should pursue a comprehensive agenda to support child care providers, who are strained by many of the same challenges impacting the broader small business community, including overly burdensome regulations, rising insurance costs and their own staffing shortages.” n
Kevin Schreiber, President and CEO of the York County Economic Alliance: “Access to quality, affordable child care isn’t just a family issue — it’s a workforce issue and an economic competitiveness issue. In York County, employers are feeling the strain as parents are forced to choose between reliable care and reliable work. If we want to grow our labor force, strengthen our businesses, and keep our local economy thriving, we have to ensure that every working family has the child care support they need to succeed.” n
Allen Bodford, President, First Quality Absorbent Hygiene Division: “First Quality is thrilled to be expanding our adult incontinence manufacturing capacity in Lewistown. We thank Governor Shapiro, the Commonwealth of Pennsylvania Department of Community and Economic Development and the Mifflin County Industrial Development Corporation for their continued support. We also want to thank our dedicated team in Lewistown for their continued dedication to the company and to making a quality product for our customers.” n
Nick Felice, President/CEO, Mifflin County Industrial Development Corporation: “First Quality came to our community in 2009 and quickly became a top five private sector employer. This expansion shows their strong commitment to Mifflin County, as they continue to provide competitive wages and benefits to area residents. We are appreciative of their investments here in Central Pennsylvania and look forward to their continued positive impact on our local and regional economy.” n
Lauren Bryson, Executive Director, Focus Central Pennsylvania: “First Quality has proven to be a leader in the marketplace, a choice employer providing high-quality career opportunities, and a strong community supporter of education, community events, and volunteer work. Focus Central Pennsylvania is proud to partner with our local leaders like Nick Felice and MCIDC to collaborate regionally to attract investment that cultivates economic growth in Central Pennsylvania. Pennsylvania is getting it done!” n
Said Chergui, CEO and President, US Durum: “We’d like to thank DCED and the Shapiro Administration for their support in helping us make this move to Harrisburg. We are happy to be here and look forward to being a strong part of the local community for many years to come.” n
Senator Patty Kim: “This investment by US Durum Products is exactly the kind of growth we want to see in Harrisburg. Jobs are being brought to our community and we’re also supporting Pennsylvania’s farmers. This project creates real opportunities for working families while strengthening our local economy for the long term.” n
Representative Dave Madsen: “I’m thrilled to welcome US Durum Products to Harrisburg. This investment brings modern equipment, expands local manufacturing in the heart of our region, and helps protect and grow family-sustaining jobs. Projects like this strengthen our local economy and show what’s possible when we support homegrown businesses and workforce development.” n
Here’s what Pennsylvanians are watching and reading about the 2025-26 budget: n
Lancaster Farming: Gov. Shapiro Lauds Pennsylvania Farm Bureau for 75 Years n
South Philly Review: Shapiro Joins Annual Camp Out For Hunger n
WESA: Pennsylvania’s budget includes extra funds for food banks hard hit by SNAP freeze n
Philadelphia Inquirer: A new Pa. tax credit could put up to $805 in your pocket. Here’s what to know. n
Center Square: Families will see $193M tax credit in 2026 n
PennLive: Long-sought Pa. tax credit for some workers to be ready for filing season n
ABC 27: 1 million Pennsylvanians will qualify for new tax credit n
WGAL: Governor announces new state tax credit for working Pennsylvanians n
WPXI: New Working Pennsylvanians Tax Credit projected to bring $193M in tax relief n
FOX43: Gov. Shapiro highlights new Working Pennsylvanian’s Tax Credit in state budget n
WJAC: State leaders tout new tax credit to help millions of working Pennsylvanians n
Nuevo crédito fiscal estatal para habitantes de Pensilvania n
Delaware Valley News: Governor Shapiro Came To Bristol To Talk About Child Care n
Center Square: Child care workers make $25M appearance in budget n
ABC 27: Pennsylvania devotes $25 million to childcare industry n
WFMJ: $25 million budgeted for Pennsylvania child care n
Penn Live: Food manufacturer to relocate from Lancaster County to Harrisburg n
Pennsylvania Business Report: First Quality makes $142M expansion investment in Lewistown manufacturing plant n
WGAL: Lancaster County couscous business relocates to Dauphin County, creating new jobs n
Central Penn Business Journal: Shapiro-Davis Admin secures $8M Investment from US Durum to expand manufacturing, create jobs n
Governor Shapiro’s 2025-26 budget will build on the foundation the Shapiro Administration has constructed over the past two years and move Pennsylvania forward as the Governor continues working across the aisle to get stuff done and ensure people across the Commonwealth have the freedom to chart their own course and the opportunity to succeed. n
Read more about Governor Shapiro’s 2025‑26 budget, view the Governor’s final budget remarks as prepared Governor’s final budget remarks as prepared online, or watch the Governor deliver remarks online. n
For more information about the Department of Community and Economic Development, visit the DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn. n
MEDIA CONTACT: n
Governor’s Office, ra-gvgovpress@pa.gov, 717.783.1116 n
DCED, dcedpress@pa.gov n
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