HARRISBURG, Pa. - Gov. Josh Shapiro signed a $50.1 billion budget into law on Tuesday for the 2025-26 fiscal year, a spending plan that includes new tax relief for families and increased funding for public education.

The budget also maintains nearly $8 billion in the state’s Rainy Day Fund at the end of the fiscal year, according to a news release from the governor's office.

The new spending plan delivers a new state-level Earned Income Tax Credit for families, called the Working Pennsylvanians Tax Credit. The credit will equal 10 percent of the federal credit and provide $193 million in tax relief. Nearly one million residents will qualify for the new credit, which is modeled after the federal credit, the release said. Working families with dependents may receive up to $805 back in tax

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