Pennsylvania Governor Josh Shapiro speaks at a ribbon cutting at the TGR Learning Lab Philadelphia in Philadelphia, Pennsylvania, U.S., September 8, 2025. REUTERS/Rachel Wisniewski

Pennsylvania Republicans know that incumbent Democratic Gov. Josh Shapiro won't be easy to beat next year in the 2026 midterms. The incumbent Democrat defeated far-right MAGA Republican Doug Mastriano by roughly 15 percent in 2022, and some Democratic strategists are hoping he will run for president in 2028 — arguing that he is moderate enough to go the distance not only in Pennsylvania, but also, in other swing states such as Arizona, Georgia, Michigan and Wisconsin.

But Republicans in the Keystone State are feeling bullish about Pennsylvania State Treasurer Stacy Garrity, who is seeking her state's 2026 GOP gubernatorial nomination. And according to Philadelphia Inquirer reporters Gillian McGoldrick and Katie Bernard, Garrity's latest "unprecedented" move may be carefully designed to improve her chances should she become the nominee and go up against Shapiro in the general election.

In an article published by the Inquirer on September 24, McGoldrick and Bernard report, "Pennsylvania Treasurer Stacy Garrity stepped in on Wednesday to offer counties and early education programs $500 million in low-interest loans to hold them over until a final state budget deal is complete, sidestepping the General Assembly and Gov. Josh Shapiro as they near the start of a third month at an impasse. Garrity, a Republican who last month announced her bid to challenge Shapiro in next year's gubernatorial election, announced the unprecedented move to allow the (Pennsylvania) State Treasury to offer the loans to county human service departments for the many social services they provide, as well as for early education Head Start programs, at a 4.5 percent interest rate."

The reporters adds, "Counties, schools, and social service providers have pleaded for months with the legislature to finalize a budget so they can begin receiving their expected state payments, which have been on hold since the beginning of the fiscal year on July 1…. The move would allow counties to access millions of dollars for early education programs serving 35,000 children across the state, as well as for county social services — all of which have been operating for months without their state appropriation, with no end to the budget impasse in sight."

Shapiro's Democratic allies tout him as a problem-solver who can cut through partisan politics and get things done in a volatile swing state that went to ex-President Joe Biden in 2020 and Donald Trump in 2024. And he was on Democratic presidential nominee Kamala Harris' short list for a running mate last year, although she ultimately chose Minnesota Gov. Tim Walz.

But Garrity's allies, according to McGoldrick and Bernard, are hoping to convince voters that she is the real problem-solver in the race.

Garrity denies that her move has anything to do with running for governor, but Pennsylvania State Senate President Pro Tempore was quick to praise her — saying, in a statement, "Today, Treasurer Stacy Garrity made a bold move that shows what 'get stuff done' actually looks like. Treasurer Garrity's leadership is on display as her solution-driven option is exactly what we need, but has been glaringly missing from the present administration."

McGoldrick and Bernard explain, "Garrity's decision to act unilaterally without the action of the (Pennsylvania) General Assembly allows her to capitalize politically on the ongoing budget crisis over Shapiro, challenging his image as a moderate Democratic governor of a politically 'purple' state willing to work across the aisle in a divided legislature. That brand, which he has built nationally as he is rumored to have interest in running for president in 2028, has been tested as he has so far been unable to secure a budget deal or a recurring funding stream for the state's beleaguered mass transit agencies, including SEPTA. Shapiro, for his part, has described his role in budget negotiations as being a go-between for Senate Republicans and House Democrats, who control their respective chambers, and has said that the two caucuses remain 'diametrically opposed' on some issues."

Read the full Philadelphia Inquirer article at this link (subscription required).