Minimum wage in Pennsylvania could rise to $15

Governor Josh Shapiro proposed raising Pennsylvania's $7.25 hourly minimum wage to $15 in his 2026-27 budget address, and his administration estimates the change could lower Medicaid spending by about $300 million in the first full year.

Pennsylvania's minimum wage, unchanged for 16 years, is the focus of Governor Josh Shapiro's 2026-27 budget proposal. In his budget address, Shapiro urged lawmakers to raise the state's $7.25 hourly wage to $15. He framed the change as both a moral choice and a fiscal strategy and cited a state estimate of Medicaid savings tied to higher wages. The proposal was presented amid wider movement across several states to raise minimum pay. Key facts: - Pennsylvania's minimum wage has remained $7.25 per hour for 16 years. - Governor Josh Shapiro included a proposal in his 2026-27 budget to raise the state minimum wage to $15. - The administration projects roughly $300 million in Medicaid savings in the first full year if the wage reaches $15 and notes about 61,000 Medicaid recipients earn under $15. - The state House has passed minimum wage increases twice previously, but the Senate did not act; any change would require approval by both chambers. - Several neighboring states are at or moving toward $15, and at least 18 states will raise minimum wages in 2026. Summary: If enacted, the proposed increase would align Pennsylvania with many neighboring states and is presented by the governor as having both social and fiscal effects, including projected entitlement savings. The change requires legislation to pass both the House and the Senate before reaching the governor, and with noted Senate resistance the outcome is undetermined at this time.