Balancing a national profile and a new Trump term, Gov. Josh Shapiro’s budget pitch toes the line

HARRISBURG — Gov. Josh Shapiro’s third budget proposal was a balancing act.

On one hand, Shapiro, a Democrat in his first term and up for reelection next year, delivered a $51.5 billion budget pitch on Tuesday that incorporated Republican priorities like tax reforms and agricultural funding. On the other, Shapiro maintained a strong foundation of Democratic values, advocating to raise the state minimum wage and legalize recreational marijuana.

And through it all, the governor in his speech walked the bipartisan tightrope, preaching collaboration and unity, while repeating the refrain: “Pennsylvania is on the rise.”

As Democrats find their footing in President Donald Trump’s second term, Shapiro’s play to the middle speaks to the challenge they face. Trump has already threatened to cut off all federal funding — which makes up a core part of Pennsylvania’s annual spending — and previously restricted resources to Democratic governors who maligned him. Shapiro has the added weight of being a swing-state governor with a divided legislature, which requires all legislation to be agreed to by a GOP Senate and a narrowly Democratic House before it reaches his desk. What’s more: He remains a Democratic front-runner for the 2028 presidential primary, managing a national profile as a moderate willing to work across the aisle.

It’s a much different tone for Shapiro — and many Democratic governors — than during Trump’s first term. Then, as Pennsylvania’s attorney general, Shapiro was a part of the resistance, joining other Democratic states in lawsuit after lawsuit to challenge the Trump administration. Now, Shapiro is the governor of a large state that relies heavily on federal funding, and has pledged to work with Trump and any leader who has Pennsylvania’s best interest in mind.

During his budget address, Shapiro mentioned Trump only once, in reference to the red wave that took over Washington earlier this year with Trump’s inauguration in January.

“You can clap for that, that’s all right,” he said as some Republicans in the House chamber cheered at Trump’s mention.

As he noted that Republicans now control the U.S. House and Senate, far-right GOP State Rep. Stephanie Borowicz of Clinton County could be seen whooping in support.

“Hang on. You might wanna hold your applause for a second,” Shapiro said, before finishing his thought.

While voters nationwide elected Republicans to control Washington, Shapiro continued, Pennsylvanians preserved a split legislature, with a strong GOP majority in the state Senate and a one-seat Democratic majority in the state House. (The state House is currently tied at 101-101, after a Democratic member died following a health emergency, but is expected to return to narrow Democratic control after a special election next month.)

“The good people of Pennsylvania looked at all we’ve accomplished together and spoke loud and clear through their votes: Go do more of that,” Shapiro said.

» READ MORE: Josh Shapiro once called Donald Trump an existential threat. Now, he says he’s ready to work with him.

Shapiro’s 91-minute speech was filled with GOP priorities that Shapiro said he agrees with or is willing to compromise on — such as eliminating wasteful spending, which his administration is doing through a comprehensive review of all state-owned or -leased properties, a move he says will save the state $44 million over the next 10 years.

Other highlights for Republicans in Shapiro’s budget proposal include additional funds for state police to put more officers on the street, repeals of antiquated taxes, workforce development funding, and more.

But in the budget-balancing act, Shapiro left out the one thing that Republicans really wanted to hear from him: support for a school voucher program to allow students from the state’s lowest-performing schools to attend private schools with state dollars.

“He did mention it in passing in the second budget, and it seems he forgot about it all together in his third budget,” said Senate Majority Leader Joe Pittman (R., Indiana) in a news conference after Shapiro’s budget address. “We’re hopeful that he still holds true to what he promised on the campaign trail, what he promised the people of Pennsylvania his first year in office … figuring out ways to empower parents to make decisions for their children’s educational future.”

And top Senate Republicans want Shapiro to take a more active role in leading on issues he cares about, rather than playing a mediator in the divided legislative branch. (The General Assembly must send legislation to Shapiro’s desk for his signature.)

“If he wants something done, he needs to lead on it,” said Senate President Pro Tempore Kim Ward (R., Westmoreland), riffing on Shapiro’s get-stuff-done slogan. “He can’t throw an idea out there, which he did last year, and say, ‘Let the legislature figure it out, and I’ll sign it. Then I’ll go do press conferences all over the state.’ He has to lead on something.”

Democrats, for their part, lauded Shapiro’s third budget pitch as a calm and thoughtful “vision to move all of Pennsylvania’s people forward,” as Sen. Vince Hughes (D., Philadelphia) said in a news conference.

“You compare that to the chaos that’s happening in Washington, D.C.,” Hughes said. “Gov. Shapiro is doing, in many respects, trying to put a shield of protection around what is happening in Washington.”

Lawmakers agree that they cannot predict the future in the Trump administration, which has “flooded the zone” with dozens of executive orders and actions that have overwhelmed federal agencies, threatening the existence of some.

But they disagree on whether they will need to do anything different this year, despite threats of federal funding cuts from the Trump administration, most recently in the U.S. Department of Education, which sends billions of dollars to Pennsylvania schools each year.

Federal funds make up approximately 40% of state spending each year, in addition to the $51.5 billion in state funds Shapiro proposed in his budget address on Tuesday. Plus, Pennsylvania is facing a $4.5 billion budget shortfall this year that Shapiro wants to fill, in part, with new revenue streams and by tapping into the state’s emergency savings.

» READ MORE: Gov. Josh Shapiro says he ‘got stuff done’ in his first two years. With a budget shortfall on the horizon, his biggest challenges are to come.

House Majority Leader Matt Bradford (D., Montgomery) said House Democrats have deep concerns about the Trump administration’s recent actions, but nothing yet says they need to plan differently for the fiscal year.

“We do not know what the federal government will do. What we have to do — what Gov. Shapiro has shown the way — is we will take the challenges in front of us and we will govern,” Bradford said.

“You would need a crystal ball, and, frankly, I don’t even think you can project rational thinking on it sometimes,” Bradford said of the Trump administration.

Pittman, the Senate GOP leader, said he is not concerned about federal funding cuts at this time.

“I’m quite optimistic that once the Trump economy takes root, we’ll be just fine,” Pittman said. “Everybody except the governor today has acknowledged the structural deficit that we have and the realities that we are heading toward fiscal instability. … I think the best thing we have going for us is the Trump economy, but only time will tell.”