Shapiro\u2019s administration projects that a $15 state minimum wage<\/a> would reduce Medicaid spending by about $300 million in its first full year, tying wage policy to health and fiscal outcomes.<\/p>\n What To Know\u00a0<\/p>\n The proposal would bring Pennsylvania in line with most of its neighboring states, many of which have already moved to $15 or are on a path toward reaching it.\u00a0<\/p>\n Shapiro framed the change as both a moral imperative and a fiscal strategy, highlighting projected savings to state entitlement programs if wages rise.<\/p>\n Elsewhere in the United States, at least 18 states will increase minimum wages in 2026, including California, New York, New Jersey, and Missouri, reflecting ongoing divergence from the federal $7.25 rate.<\/p>\n Shapiro leaned on that national context during his plea, noting that Pennsylvania is now surrounded by states with higher wages and risks further regional economic divergence if it does not keep pace.<\/p>\n In Full: What Shapiro Said About Raising Pennsylvania’s Minimum Wage<\/p>\n Governor Shapiro said during his 2026-27 Budget Address to the General Assembly and to the people of Pennsylvania:\u00a0<\/p>\n You know how else we can put money in people\u2019s pockets?<\/p>\n By finally raising the minimum wage.<\/p>\n Our minimum wage in Pennsylvania has been stuck at $7.25\/hour for the last 16 years. In that time, every single one of our neighboring states has raised the wage for their workers.<\/p>\n Four of our 6 neighbors are at $15 or more. Ohio is on their way to $15. Even West Virginia is ahead of us.<\/p>\n The House of Representatives has passed legislation to increase our minimum wage twice. And each time, the Senate refused to act.<\/p>\n As Senator [ Christine] Tartaglione will tell you from the floor of the Senate later today, it\u2019s been 7,150 days since Pennsylvania last passed legislation to raise the minimum wage. That\u2019s hurting over half a million workers who are still making less than $15\/hour. But you know what? Clearly, those arguments haven\u2019t convinced our friends in the Senate to act over the last decade and a half.<\/p>\n So let me give you one more reason why we need to do this.<\/p>\n Because raising the minimum wage to $15\/hour will save this Commonwealth $300 million a year on entitlement programs like Medicaid.<\/p>\n Not by adding arbitrary and cumbersome requirements that push people who still need help off the rolls, but by literally raising the wages of nearly 61,000 people who currently rely on Medicaid and make less than $15\/hour. We can put more money in their pockets so they don\u2019t need Medicaid anymore.<\/p>\n Listen.<\/p>\n If you aren\u2019t going to do this because it\u2019s the right thing to do\u2026Or because it would let more families put food on the table for their kids\u2026Then do it because it\u2019s going to save us $300 million and shrink our entitlement budget by growing our workforce and putting more money back in our workers\u2019 pockets.<\/p>\n I\u2019m calling on lawmakers to put a minimum wage bill on my desk.<\/p>\n Republican Pennsylvania Senate Majority Leader Joe Pittman: \u201cQuite frankly, if an individual\u2019s making $7.25 an hour or $15 an hour, they\u2019re not going to be able to effectuate the American dream. They\u2019re not going to be able to buy a home.\u00a0And that\u2019s why we\u2019ve continually been focused on pro-growth economic policies that bring all wages up to maximum wages.\u201d<\/p>\n He added: \u201cThe governor simply wants to spend too much money in this budget, full stop.\u201d<\/p>\n Democratic Pennsylvania House Speaker Joanna McClinton: \u201cFinally, Pennsylvania needs to stop leaving money on the table by failing to increase our outdated minimum wage.\u201d<\/p>\n Republican Pennsylvania state Senator Lisa Baker: “The governor once again marries big spending increases with proposed taxes he has failed to achieve in past years. Speculative revenues are never a good way to support continuing spending.\u00a0<\/p>\n “It is hard to see where additional votes would come from, because the arguments for and against have not changed.”<\/p>\n Pennsylvania House Republican Leader Jesse Topper: \u201cOur number one priority must be providing the foundation for substantial economic growth in the Commonwealth to balance any future state budgets. We also must begin\u2014right now\u2014the hard work of reducing the size and scope of government so we do not continue to take too much from hardworking Pennsylvania taxpayers who are already struggling to make ends meet.”<\/p>\n What Happens Next<\/p>\n Any increase to Pennsylvania\u2019s minimum wage would require action by both the House and the Senate before it could be sent to Shapiro\u2019s desk<\/p>\n In a polarized era, the center is dismissed as bland. At Newsweek, ours is different: The Courageous Center\u2014it’s not “both sides,” it’s sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.<\/p>\n When you become a Newsweek Member<\/a>, you support a mission to keep the center strong and vibrant.\u00a0Members enjoy:\u00a0Ad-free browsing, exclusive content and editor conversations.\u00a0Help keep the center courageous. Join today.<\/a><\/p>\n![\"Josh](\"https:\/\/www.newsbeep.com\/us-pa\/wp-content\/uploads\/2026\/02\/GettyImages-2254716175.jpg\"\/)
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