Pennsylvania Drops to 41st Overall State Under Shapiro With Declines in Infrastructure, Fiscal Stability, and Population Growth
When Josh Shapiro was inaugurated on January 17, 2023, Pennsylvania ranked 40th overall nationally for long term economic outlook according to the American Legislative ExcIIhange Council. Two years later, the state stands 41st overall in the 2025 U.S. News & World Report rankings, with infrastructure, fiscal stability, and competitiveness metrics near the bottom nationally.
Pennsylvania slipped from 40th in 2023 to 41st overall, placing it among the ten worst states in the nation. Infrastructure, which had been 40th, dropped to 43rd, making it one of the worst states for roads and bridges. Fiscal stability, which had been 37th, fell to 39th, with a $1.1 billion structural deficit, ranking the state among the worst for financial health. Despite maintaining a Moody’s credit rating of Aa2, it's still below the top AAA states. The natural environment fell to 40th, and lead exposure risk in housing worsened to 49th, making Pennsylvania the second worst state in the nation for homes contining lead hazards. Economic opportunity also slid to 41st, keeping the state among the worst for job and income prospects.
Population trends reinforce concerns about an ongoing exodus. According to the U.S. Census Bureau, Pennsylvania experienced net domestic outmigration of approximately 11,500 residents between 2023 and 2024. The U-Haul Growth Index shows a drop from 31st in 2023 to 46th in 2025, reflecting accelerated outbound movement of families and workers. Meanwhile, the American Tort Reform Foundation ranked Pennsylvania 50th in legal climate, calling it a “judicial hellhole,” and the Tax Foundation placed it 36th in tax competitiveness.
Beyond rankings, structural pressures are significant. Pennsylvania’s public pension systems carry roughly 60 to 70 billion dollars in unfunded liabilities. Medicaid enrollment stands near 3 million residents, meaning roughly 1 in 4 Pennsylvanians rely on the program. By 2030, projections indicate nearly 1 in 4 residents will be over age 65, intensifying long term fiscal strain. The state continues to lead the nation in structurally deficient bridges, with more than 3,000 classified in poor condition.
Pennsylvania slipped from 40th in 2023 to 41st overall, placing it among the ten worst states in the nation. Infrastructure, which had been 40th, dropped to 43rd, making it one of the worst states for roads and bridges. Fiscal stability, which had been 37th, fell to 39th, with a $1.1 billion structural deficit, ranking the state among the worst for financial health. Despite maintaining a Moody’s credit rating of Aa2, it's still below the top AAA states. The natural environment fell to 40th, and lead exposure risk in housing worsened to 49th, making Pennsylvania the second worst state in the nation for homes contining lead hazards. Economic opportunity also slid to 41st, keeping the state among the worst for job and income prospects.
Population trends reinforce concerns about an ongoing exodus. According to the U.S. Census Bureau, Pennsylvania experienced net domestic outmigration of approximately 11,500 residents between 2023 and 2024. The U-Haul Growth Index shows a drop from 31st in 2023 to 46th in 2025, reflecting accelerated outbound movement of families and workers. Meanwhile, the American Tort Reform Foundation ranked Pennsylvania 50th in legal climate, calling it a “judicial hellhole,” and the Tax Foundation placed it 36th in tax competitiveness.
Beyond rankings, structural pressures are significant. Pennsylvania’s public pension systems carry roughly 60 to 70 billion dollars in unfunded liabilities. Medicaid enrollment stands near 3 million residents, meaning roughly 1 in 4 Pennsylvanians rely on the program. By 2030, projections indicate nearly 1 in 4 residents will be over age 65, intensifying long term fiscal strain. The state continues to lead the nation in structurally deficient bridges, with more than 3,000 classified in poor condition.
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