Six More Weeks of Winter & Another Budget Season

2026-27 Budget Proposal


ICYMI, but really, how could you?


Governor Shapiro delivered his 2026-27 budget address to a joint session of the General Assembly in the House Chambers at the State Capitol in Harrisburg on Tuesday.


The proposed General Fund expenditure for this budget is $53.3B, marking a $2.7B increase, or 6.4% rise, from the approved 2025-26 budget. Did you miss our special edition on the budget proposal? You can find all of the information here: https://conta.cc/49V2o5n


The Republican response expressed concerns with spending but underscored their intent to ensure that pro-growth policies continue to be supported. The Senate Republican release is available here, while the House Republican release is available here

Energy and Data Centers


Energy, and data centers’ impact on that energy, was a focus within the Tuesday budget address. The Governor announced the Governor’s Responsible Infrastructure Development (GRID) standards for data center developers.


GRID requires data centers to supply their own energy or pay for any new generation they need. It also calls on them to hire and train Pennsylvania workers and comply with “the highest standards of environmental protection,” including in water conservation. 

Speaking of Data Centers


On Monday, the House Energy Committee approved legislation that expands state regulations for data centers. House Bill 1834 (HB 1834) directs the state Public Utility Commission (PUC) to set regulations for data centers in such areas as paying for grid-related costs and curtailing their electric demand during emergencies. 


The committee also held a hearing on two other data center bills: House Bill 2150 (HB 2150) that requires data centers to report energy and water use to the Department of Conservation and Natural Resources, and House Bill 2151 (HB 2151) directing local governments to adopt local ordinances addressing setbacks, sound barriers and design standards for data centers.

Budget Legislation


Legislation tied to proposals in the Governor’s address have begun to trickle out. Senator Hughes and Rep. Briggs are introducing legislation in their respective chambers for Innovate in PA 2.0.


The legislation will restart the Innovate in PA tax credit program. The 2013 program authorized the sale of $100 million in Insurance Premium Tax Credits to invest in the Commonwealth’s biotech/life sciences. It generated approximately $85 million for the biotech industry.


The 2.0 program will offer $350 million of deferred insurance premium tax credits for sale. The sale of tax credits would not occur before October 1, 2026, and tax credits would not be redeemable until 2030. The total amount of tax credits applied against insurance premiums tax in a fiscal year would be capped at $70 million per year beginning in calendar year 2030.


Funds generated from the tax credit sale will be invested in programs that will support the Commonwealth’s biotechnology/life sciences industry as follows:


  • Commonwealth Financing Authority -- 40% for grants or loans to support the construction of commercial lab space, incubators, applied research and development facilities, and related public improvement and public interest projects
  • Venture Investment Program – 25%
  • Regional biotechnology research centers – 10%
  • Labor & Industry – 10% for grants to fund new partnerships between biotechnology and life science companies, training providers, and educational institutions; programs that provide opportunities to prepare a diverse range of students from diverse backgrounds for careers in the biotechnology or life sciences sector; programs designed for 11th and 12th grade students from historically underrepresented or economically disadvantaged communities and who have an interest in biotechnology or life sciences research; and programs that provide personalized entrepreneurial education for first time founders of biotechnology or life science ventures of any development stage
  • Department of Community & Economic Development – 8% for grants to life science companies and institutions of higher education for recruitment and retention initiatives to attract and retain exceptional life science researchers
  • Ben Franklin Technology Partners – 7%.

GROW PA


The 2026-27 Grow PA grant application is now available here. The Grow PA Scholarship Grant program offers grants of up to $5,000 per year for in-state students who pursue a degree or certification in an in-demand occupation. The program is administered by the Pennsylvania Higher Education Assistance Agency (PHEAA).

(Another) Special Election


A special election for Rep. Seth Grove’s (R-York) House seat will be held May 19, 2026 (the same day as PA’s Primary Election). The candidates for the office are expected to be finalized by early April.


As a recap:


Democrat Ana T. Tiburcio will take on Republican Robert E. Smith, Jr. on February 24 to fill the vacancy in the 22nd Legislative District. Located in Lehigh County, the seat is vacant after Joshua Siegel was elected Lehigh County Executive.


In the 42nd Legislative District, Democrat Jen Mazzocco and Republican Joseph Leckenby are competing in the February 24 primary. One of the two will be filling the vacancy left by Dan Miller who resigned after winning a seat on the Court of Common Pleas in Allegheny County.


On March 17, Democrat Caleb McCoy and Republican Andrea C. Verobish will go head-to-head to be the next representative in the 79th Legislative District. The seat is vacant following the election of Louis Schmitt, Jr. to the Court of Common Pleas of Blair County.



That same day, a special election for the 193rd Legislative District pits Democrat Todd Crawley against Republican Catherine Wallen. The district includes municipalities in both Adams and Cumberland County and had previously been held by Torren Ecker, who was elected to the Adams County Court of Common Pleas.

2026 Winter Olympics


The opening ceremony for the 2026 Winter Olympic Games in Milan is starting now (and replaying this evening for those of you who miss it).


Interested in rooting for the Pennsylvanians? Follow these athletes:


Taylor Anderson-Heide – Curling (Hometown: Broomall, PA)

Dan Barefoot – Skeleton (Hometown: Johnstown, PA)

Summer Britcher – Luge (Hometown: Glen Rock, PA)

Andrew Heo – Speedskating, Short Track (Hometown: Warrington, PA)

Jasmine Jones – Bobsled (Hometown: Greensburg, PA)

Ava McNaughton – Ice Hockey (Hometown: Seven Fields, PA)

Vincent Trocheck – Ice Hockey (Hometown: Pittsburgh, PA)


Special Shout Out:


J.T. Miller – Ice Hockey (His hometown is East Palestine, OH, BUT, he lived in Moon Township, PA as a kid and played hockey there.)

What's Next

The Senate will reconvene on March 16 for a voting session, with the House returning the week following, on March 23.


Budget hearings will also be beginning soon. You can find the schedules in the link below.

Resources



Session Schedules – House + Senate

Committee Meeting Schedules – House + Senate

2026-27 Budget Hearing Schedules - House + Senate

Bill Index – House + Senate

Co-Sponsorship Memoranda – House + Senate

Pennsylvania Bulletin – February 7, 2026

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