What Pennsylvania Lawmakers Must Prioritize in 2026

Pennsylvania stands at a pivotal moment. Families are stretched thin by higher costs, and employers are weighing whether to invest here or elsewhere. We can’t afford to ignore these warning signs. All the while, the commonwealth will remain in the national spotlight as the most important swing state.

Many lawmakers are already leading on these priorities, particularly allies in the Pennsylvania Senate and House Republican leadership. We welcome their continued leadership and stand ready to work with any lawmaker, regardless of party, who is serious about delivering results for Pennsylvania families.

Time is of the essence.

Empower Families with Educational Choice

Parents like us — not bureaucrats — know best what our children need to succeed.

However, too many families remain stuck in schools that don’t work for their kids. More than 63,000 EITC and OSTC applicants didn’t receive a scholarship, underscoring an urgent unmet need. Hundreds of thousands of Pennsylvania students remain stuck in the state’s lowest-achieving schools without viable alternatives. For some students, limited options became even more limited when the governor cut $178 million from cyber charters.

The General Assembly should expand educational opportunity for every family. This means (1) expanding tax credit scholarships; (2) enacting Lifeline Scholarships, which provide funding to students trapped in the lowest-performing schools; and (3) opting into the new federal scholarship program.

When education dollars follow students, everyone wins.

Confront the Deficit — But Not with the Rainy Day Fund

Pennsylvania faces a $4.8 billion structural deficit driven by spending that outpaces revenues.

Some public officials, including Gov. Josh Shapiro, have proposed dipping into the state’s Rainy Day Fund to paper over this fiscal shortfall. However, this fund is only for emergencies, not reckless spending.

Ignoring this problem — or draining fiscal reserves to “solve” it — only makes the eventual reckoning more painful for Pennsylvania families. If lawmakers continue to kick this can down the road, the likely result will be a statewide tax hike of about $1,500 for an average family of four. Pennsylvanians must live within their means; government should do the same.

The General Assembly must rein in spending and produce a responsible budget that focuses on core government functions and protects families from tax increases.

Prioritize Affordability by Unleashing Growth

Pennsylvania’s regulatory code — with more than 164,000 restrictions — has grown into a cumbersome, outdated maze that discourages innovation and entrepreneurship. Pennsylvanians feel the impact of policies that limit competition, resulting in higher electricity bills and increasing health care costs.

Assuredly, the General Assembly made great strides this year. As part of state budget negotiations, lawmakers passed “deemed-approved” permitting, which prevents unnecessary bureaucratic delays and encourages businesses to invest in Pennsylvania.

But lawmakers must enact deeper regulatory reforms this session. This includes passing the Regulations from the Executive in Need of Scrutiny (REINS) Act, which would require legislative approval of major new regulations.

Smart regulation protects health and safety without strangling opportunity. By removing such barriers, Pennsylvania can lower costs for families and businesses and unleash its economic potential.

Ensure Welfare Helps Those Most in Need

We recognize that a strong safety net is warranted, but it must be targeted, accountable, and effective. Compassion and accountability are not mutually exclusive principles.

However, as Minnesota has recently demonstrated, welfare programs are susceptible to waste, fraud, and abuse. Lawmakers must strengthen eligibility verification, improve oversight, and encourage pathways to work and independence for healthy, childless, working-age adults.

Such reforms ensure assistance reaches individuals and families who genuinely need help.

Protect Worker Freedom and ChoiceWorkers deserve both opportunity and choice.

Too often, government unions play politics rather than representing their members — funding their partisan politics and activism with membership dues.

Labor reforms, such as union recertification and paycheck protection, ensure unions remain accountable to the workers they represent. These reforms safeguard workers’ rights and freedoms while fostering a more flexible, competitive labor market that benefits everyone.

New Year and New Opportunities

In 2026, all eyes will be on Pennsylvania again. Lawmakers have a unique opportunity to showcase the commonwealth as a beacon for progress and possibility. This will take bold action that bucks the status quo.

By expanding educational choice, protecting taxpayers, improving affordability, restoring fiscal discipline, and unleashing our strongest industries, Pennsylvania can become a national leader and help shape a future of opportunity and prosperity for all. When we transform Pennsylvania, we will save America.

Megan Martin, a former state Senate parliamentarian, and Stephen Bloom, a former state representative, work for the Commonwealth Foundation, Pennsylvania’s free-market think tank.

Stephen Bloom, a former state representative, and Megan Martin, a former state Senate parliamentarian, work for the Commonwealth Foundation, Pennsylvania’s free-market think tank.