February 2025 | Legislative Update

What’s in the Governor’s budget proposal for housing?

On February 4th, Pennsylvania Governor Josh Shapiro presented his second budget address to the General Assembly. 

Highlights include a new education funding formula which will deliver an additional $526 million for public schools; accelerated corporate tax reductions and a change to the tax code.  New revenues are proposed through recreational adult-use cannabis legalization which is estimated to raise $1.3 billion for the state over five years. 

Once again, Shapiro has made aggressive housing proposals for 2025 that include an additional $10 million for the PHARE program, a new $50 million home repair fund, and a $10 million fund to assist first time home buyers.

State Representative Sean Dougherty has introduced HB 643 to increase PHARE by an additional $10 million by 2028-29 and funded at $110 million each year after.

Shapiro also called on the General Assembly to pass legislation that would seal eviction records for those who have never been evicted.  While the initiative is not a budget item, the Governor’s call to action on the issue is indicative of wide support for record sealing to allow tenants filed against to access future housing. 

The Housing Alliance is pursuing legislation once again this session to place all eviction records under an order of limited access after seven years.  Last session, HB 1769 was reported from the House Judiciary Committee, but not voted on the House floor.  Companion legislation is again expected in the Senate.

House and Senate Appropriations Committee hearings began the week of February 17th during which members of House and Senate Appropriations examine the budget requests for each department under the Administration.

While it is a great sign that the Governor is prioritizing housing in his budget proposal, we need bipartisan support of these proposals to get them past the finish line. Much is likely to change.

A final budget is due to be passed by June 30th.