State budget negotiators knew going into 2025 that a structural deficit, education needs, and Medicaid costs would create challenges, but now they may face them amid “a fundamental change in the compact that exists between the federal government and the states.” Those were state Budget Secretary Uri Monson’s words on Thursday for ongoing uncertainty about the future of billions of dollars for Pennsylvania tied to federal-state programs. Mr. Monson, who testified at a budget hearing, is the point man for Gov. Josh Shapiro’s proposed $51.5 billion state budget for 2025-26. Mr. Monson said that when the result of the apparent “historic” shift of the federal-state relationships becomes clear — a shift unlike any since the administration of President Lyndon Johnson — state leaders will need to figure out a path forward “that meets the needs of everyone in Pennsylvania.” Last month, Governor Shapiro unveiled his $51.4 billion budget proposal for Fiscal Year 2025-26.
