HARRISBURG — The Pennsylvania Economic Competitiveness Caucus today welcomed several provisions in the 2026-27 state budget that strengthen Pennsylvania’s competitiveness and support long-term economic growth. Caucus co-chairs, State Senators Kristin Phillips-Hill (R-York) and Lisa Boscola (D-Northampton), along with State Representatives Paul Friel (D-Chester) and Josh Kail (R-Beaver), praised the preservation of key tax reforms, investments in workforce and innovation initiatives, and measures that advance infrastructure and energy development across the Commonwealth.
The budget maintains Pennsylvania’s Corporate Net Income Tax reduction schedule and preserves recent improvements to Net Operating Loss deductions, continuing reforms that help attract investment, support business growth, and create jobs. The budget also avoids several proposals that would have increased costs and uncertainty for employers.
“Adjusting for inflation, this budget effectively cuts spending and puts Pennsylvania in position for a future balanced budget,” said Senator Phillips-Hill. “While imperfect, this budget continues tax cuts, blocks future tax hikes, funds what’s important to Pennsylvanians and allows our commonwealth to remain competitive.”
The Caucus also pointed to investments aimed at strengthening Pennsylvania’s future workforce and economy, including support for employer-driven job training, career and technical education wait-list relief, Grow PA scholarship programs, and the new Innovate in PA 2.0 initiative, aimed to help attract private investment and support the growth of Pennsylvania’s innovation economy.
“Competitiveness means giving employers a reason to choose Pennsylvania,” said Senator Boscola. “The budget does that by holding the line on taxes while investing in the workforce training and infrastructure our businesses need to compete, grow, and hire.”
Additionally, the budget includes measures to accelerate transportation improvements, support critical infrastructure projects, and advance energy development, helping ensure Pennsylvania remains competitive in attracting businesses, residents, and investment.
“When we work together and find common ground, we can build an economy that works for all Pennsylvanians,” said Representative Friel. “This budget proves we can invest in people and create an environment where businesses can thrive.”
“I would have preferred an even leaner budget, but this agreement includes meaningful investments that directly benefit our communities,” said Representative Kail. “It provides nearly $800 million in additional funding for rural roads and bridges, helping to improve public safety, agriculture, and economic development across our region.”
This budget preserves important competitiveness gains and advances policies that support investment, job creation, and long-term growth in Pennsylvania. The Competitiveness Caucus will continue working across party lines to advance policies that strengthen the Commonwealth’s economic competitiveness.
The Pennsylvania Economic Competitiveness Caucus is a bipartisan, bicameral group of lawmakers focused on advancing policies that strengthen Pennsylvania’s economic competitiveness, encourage private-sector investment, and support sustainable economic growth.