(The Center Square) – Pennsylvania’s minimum hourly wage has remained unchanged for 16 years, even though it has reached double digits in neighboring states.
However, unlike previous years Governor Josh Shapiro”Tuesday’s budget proposal puts a massive emphasis on eventually raising the rate from $7.25 to $15, emphasizing that it is key to economic growth, entitlement reform and human security.
“Look, if you’re not going to do it because it’s the right decision or because it would allow more families to put food on the table for their children,” Shapiro said, “then do it because it will save us $300 million and reduce our entitlement budget by increasing our workforce and putting more money in the pockets of our employees.”
The “you” in the governor’s comments refers to Republican lawmakers who have been negligent in raising the stakes too high for fear of collapsing the job market for low-income workers.
Senate Majority Leader Joe Pittman (R-Indiana), one of the Legislature’s key budget negotiators, said that even at $15, minimum wage workers would not be able to “realize the American dream.”
“We are willing to talk about the minimum wage and see if we can come to a compromise, but judging by the way the governor has delivered this message, I think he is more interested in political issues than actually doing something about it,” he said.
The policy fits into a broader message from Shapiro and his Democratic allies in the Legislature: Pro-worker, pro-family policies will enhance state revenues enough to cover rising spending on schools, safety net programs and tax breaks.
The latter includes a state income tax credit that will pay $1,000 to about 900,000 workers. Tax credit financing, as well as Medicaid and food stamp costs, make up part of the $4.5 billion budget gap. Republicans fear revenues won’t be able to cover it.
Earlier this month, the federal Department of Health and Human Services, which gives money to states to pay for social programs, reported that enrollment had dropped 8% over the past two months.
The recent rules require recipients to work, volunteer or participate in work or education programs for a total of at least 80 hours per month or approximately 20 hours per week.
It is unclear whether the decline in enrollment is a result of finding gainful employment. A 2023 Congressional Budget Office study that examined Medicaid work requirements found that the changes “would lead to lower federal costs, an increase in the number of uninsured people, no change in employment or hours worked by Medicaid beneficiaries, and an increase in state costs.”
For Medicaid, the recent requirements will go into effect on January 1, 2027.
For SNAP, the recent requirements went into effect in September and November. They have increased the age of people who must apply to 64. Lowered the age for eligible dependents to 14. Additionally, recent federal legislation waived SNAP provisions for veterans, homeless individuals, and current or former foster children ages 18 to 24.
Supporters say many people who don’t meet the recent requirements are overburdened with unpaid work, such as caring for family members, including adolescent children, people with disabilities and the elderly. Others, they say, meet the requirements but will likely slip through the cracks in meeting the reporting requirements.
In the reportThe Independent Tax Office said it was “impossible to determine precisely how much of the decline is attributable to new work requirements.” While timing suggests changes were at least a factor, it remains to be seen whether the adjustment will be eternal.
More than 2 million residents have received payments from the Nutrition Assistance Program in Novembershortly after solving the problem of suspending the activities of the Congress. Low-income residents, often called SNAP or food stamps, spend more than $350 million a month at 38,000 stores, and some of them depend largely on those sales for survival.
From 2019 to 2025, SNAP benefits increased by 76% and enrollment increased by two-thirds. That includes declines from pandemic-era highs, boosted by record injections of funds from the federal government.
Changes long sought in the state legislaturealthough ideological divisions still persisted. Republicans have long wanted the mandate exemptions, which have been used on and off over the past 20 years, to expire out of fear of prolonged government dependency and fraud. Democrats see this option as economically viable in the absence of a stronger safety net.
The growth of social welfare has outpaced population growth. Since 2000, Pennsylvania has gained just 700,000 residents. However, the state budget is dominated by spending provided by the Department of Human Services.
Spending on Medicaid has increased over the past 25 years. In 2000, the state spent $10.7 billion for 1.3 million residents, but in 2025, the commonwealth allocated $47 billion in benefits to 3.3 million residents.
Christen Smith is regional editor for The Center Square
