(The Center Square) – With his annual stretch of intense state budget negotiations with the Legislature just ahead, Gov. Josh Shapiro on Tuesday focused one sliver of his proposed spending plan that delivers grants to let “main street” small businesses and organizations make upgrades.
The so-called “Main Street Matters” program has received $20 million a year and Shapiro, in the proposed 2026-27 spending plan he issued in February, listed an amount just above $20 million. On Tuesday, Shapiro specifically asked that the Legislature to keep the money in the final version of the budget.
“The heart and soul of the community” is how the governor described “main streets” in towns around the state. His administration announced the latest round of 56 recipient projects statewide, totaling $17.2 million, under the program. Among locations that benefit will be six along Penn Avenue in West Reading that will receive new facades as a result of the funding.
Shapiro’s appearance came with 35 days left before the June 30 deadline for the state budget. The Democrat, who is seeking re-election and is frequently mentioned as a potential 2028 presidential candidate, must work with a Senate controlled by Republicans.
One challenge they face is a state budget deficit of nearly $6 billion. There has been no public indication thus far that any major agreements have been reached.
Last year, the budget was 135 days late, leading to billions of dollars in missed payments, program cuts, and furloughs.
Lawmakers are scheduled to return to Harrisburg for voting sessions on Monday after being out of town for 26 days. Asked Tuesday about prospects for a budget, Shapiro said there already have been regular discussions between the parties.
“I think we all recognize both the opportunities and the challenges that we have and I certainly want to get it done,” Shapiro said.
He noted that the Democratic-run House already passed a spending bill identical to the budget he proposed in February. Referring to the Republican-run Senate, he said, “I don’t think we needed to wait until June to get going in the Senate.”
Nonetheless, the governor said things seem different this year because of “good ongoing dialogue.”
The Senate Republican majority leader, Sen. Joe Pittman of Indiana County, said in a written statement on Tuesday, “We share the desire to complete the budget process on time and are actively reviewing options for reducing the projected $6 billion structural deficit.”
The biggest single proposal to erase part of that deficit would have the state regulate and tax so-called “skill games.” In his budget proposal, Shapiro estimated it could yield more than $2 billion in new revenue.
On Tuesday, Shapiro said he has had a skill games regulation proposal on the table for three years. “It is up to the House and Senate to stand up and be clear about where they stand,” he said.
The Main Street Matters program has covered the cost of facade improvements, lighting, visual displays, blight remediation, and “streetscape” improvements, among other things.
Political leaders at Tuesday’s event included state Sen. Judy Schwank, a Berks County Democrat, who noted the program helps bricks-and-mortar businesses compete with online ones. “You get the bang for the buck here,” Schwank said. “The money is well worth it.”
Rep. Johanny Cepeda-Freytiz, a Berks County Democrat who once ran a family restaurant in nearby Reading, said “there is sacrifice, there is stress, there is risk” in running such a business. Main Street Matters, she said, offered support to business people bearing those burdens.
