Harrisburg, Pa., October 22, 2025 — This week, the Pennsylvania Senate advanced legislation, including a spending bill (Senate Bill 160), that protects taxpayers and fosters economic growth.

The commonwealth remains the only state in the country without an operating budget or stop gap plan. Now weeks into a federal government shutdown, Pennsylvania’s four-month-long impasse holds the state in a doubly precarious position.

In February, Gov. Josh Shapiro proposed an unserious $51.5 billion budget—leading to a $7 billion deficit and forcing a massive tax hike on Pennsylvania families. Since then, Shapiro has remained notably absent from discussions while offering no substantial commentary on ongoing negotiations since the budget deadline (aside from colorful remarks where he declared he’s ‘all-in,’ supporting US Senate Democrats’ continued filibuster to shut down the federal government).

The Pennsylvania Senate’s spending proposal—totaling $47.9 billion—balances fiscal responsibility while protecting against future tax increases. Along with their spending plan, the Senate also advanced key pieces of legislation to protect the state’s energy sector from RGGI participation and advance significant permitting reform to remove the burden of red tape across Pennsylvania industry.

SB 6, cosponsored by Sen. Greg Rothman and Sen. Kristin Phillips-Hill, would expand expedited permitting across state government while providing greater transparency for businesses. SB 1068 would require that Gov. Shapiro cease Pennsylvania’s entry into RGGI—a unilateral move by Gov. Tom Wolf ruled unconstitutional and subsequently appealed by Gov. Shapiro to the Pa. Supreme Court. Pennsylvania’s participation in RGGI will result in an energy tax that would drive up electricity prices by an estimated 30%.

Both SB 6 and SB 1068 passed with bipartisan majorities.

Megan Martin, Chief Operating Officer and General Counsel of the Commonwealth Foundation, issued the following statement:

“When faced with a budget deficit, you need to grow the economy, not grow the government. The legislation passed by the Senate protects taxpayers, makes Pennsylvania more competitive, and will help unleash our energy potential.

“Despite months of partisan theatrics and games by Gov. Shapiro and his party, the Republican-controlled Senate has acted to protect Pennsylvania taxpayers and advance the commonsense policies that will secure a bright future for our great commonwealth.

“It’s time for Governor Shapiro and House Democrats to join the state Senate in finalizing a budget that spends responsibly, avoids a costly tax hike, and provides a secure future for Pennsylvania families and workers.”

Kevin Kane, Director of Legislative Strategy, added:

“Despite Governor Shapiro’s false narrative that Senate Republicans are unable to advance the budget process, this week they passed legislation that protects our emergency reserves, guards against out-of-control spending and tax hikes, and advances policies that will drive economic growth to the commonwealth.

“As Governor Shapiro rolls out his latest vanity project and neglects his leadership role in state budget negotiations, the state Senate delivered a responsible plan that actually ‘gets stuff done.’

“Shapiro and his bloated PR team should put down his own book deal and take a page from the state Senate to work on a budget deal. No more political theater, gimmicks, or juvenile press conferences—it’s time for action. Shapiro and House Democrats should get back to Harrisburg and pass the Senate’s bipartisan plan to get Pennsylvania back on track.”

Commonwealth Foundation experts are available to discuss the Senate’s budget plan, RGGI Abrogation (SB 1068), and Regulatory Reform (SB 6). Please contact Giana DePaul at gmd@commonwealthfoundation.org or (215) 859-0384 to schedule.

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