Governor Shapiro Proposes Budget that Invests in Housing Stability and Affordability
Today, February 3rd, Governor Josh Shapiro delivered his budget address to the General Assembly.
The Governor’s proposal reflects a growing recognition that housing is foundational to health, economic security, and strong communities.
Housing highlights from the proposed budget and policy agenda include:
Targeted Investments in Housing & Health
- $1 million to implement a Department of Human Services housing proposal within the Keystones of Health demonstration, aimed at connecting medically compromised individuals with stable housing.
Major Housing & Infrastructure Investment
- A proposed $1 billion housing and infrastructure investment supported through the issuance of general obligation bonds, with proceeds deposited into the Capital Facilities Fund.
- This program will provide flexible funding for large, transformative infrastructure projects across the Commonwealth, including bringing new energy generation onto the grid, building and preserving housing, and upgrading school and municipal facilities.
Common-Sense Housing Policy Reforms
The Governor also outlined support for a package of housing legislation designed to improve fairness, stability, and access, including:
- Establishing a statewide cap on rental application fees and prohibiting excessive or duplicative charges
- Affirming a tenant’s right to terminate a lease due to domestic violence
- Sealing eviction records for cases where a tenant was not actually evicted
- Advancing fair-chance housing reforms to limit when and how criminal history may be considered in rental decisions
- Limiting annual lot rent increases to protect residents of manufactured housing communities
- Addressing tangled title issues through a transfer-on-death deed option
- Creating a Deputy Secretary of Housing at DCED to better coordinate statewide housing priorities
- Modernizing the Municipalities Planning Code (MPC) to reduce regulatory barriers and support housing development
The Broader Budget Context
While Pennsylvania currently has budget surpluses, lawmakers are also grappling with a long-term challenge known as a structural deficit, where the cost of essential services like healthcare, education, and human services is projected to grow faster than ongoing revenues.
The state is operating within a divided legislature, with Democrats controlling the House, Republicans controlling the Senate, and the Governor needing agreement from both to pass a final budget.
Together, these dynamics shape what ultimately makes it into the state budget- what lawmakers choose to prioritize, protect, or postpone.
What Happens Next
This proposal marks an important starting point, not the final outcome. The budget reflects a statement of values from the current administration, and while housing has long been a bipartisan issue in Pennsylvania, how it is prioritized in the budget will be shaped through ongoing negotiations.
Continued advocacy will be essential to ensure housing stability, homelessness prevention, and long-term affordability remain in the final budget, which must be passed by June 30.
In the coming weeks, the House and Senate Appropriations Committees will hold budget hearings with state departments and agencies to closely examine the Governor’s proposed spending plan.