After going more than 130 days without a state budget \u2013 an impasse that imperiled funding for county governments, public schools, mass transit and other essential services \u2013 state lawmakers sent Gov. Josh Shapiro a $50 billion state budget that he quickly signed into law.\u00a0<\/p>\n
City & State compiled a budget tracker for the 2025-26 fiscal year, which offers a comprehensive timeline of Pennsylvania\u2019s 2025 budget impasse \u2013 and what it took to resolve it.\u00a0<\/p>\n
Nov. 12, 2025: Lawmakers return to Harrisburg to approve $50.09 billion state budget\u00a0<\/p>\n
After lawmakers returned to Harrisburg to advance a compromise budget deal, Gov. Josh Shapiro on Wednesday signed a $50.09 billion state budget into law, ending the commonwealth\u2019s 135-day budget impasse. The budget package earned bipartisan support in both chambers of the General Assembly, and Shapiro said Wednesday that the spending package approved by lawmakers is \u201ca budget that delivers for Pennsylvanians.\u201d<\/p>\n
\u201cThis day, of course, has been a long time coming,\u201d Shapiro said, acknowledging the divided nature of the General Assembly. \u201cThis is a balanced budget that cuts taxes, that makes critical investments, that protects 100% of Pennsylvania\u2019s Rainy Day Fund \u2013 and still leaves us with $8 billion in reserves. \u201d<\/p>\n
Among other provisions, the budget deal won\u2019t take any money out of the state\u2019s Rainy Day Fund<\/a>, which currently has more than $7 billion. It creates a new Working Pennsylvanians Tax Credit, which Shapiro called a \u201cbig, big deal.\u201d It will also reform state permitting processes and increase Basic Education Funding by $105 million. The spending plan increases education funding through the state\u2019s adequacy formula by $565 million.<\/p>\n Also included in the budget package are significant reforms to the state\u2019s cyber charter school laws.\u00a0<\/p>\n As part of the negotiations, Shapiro also agreed to withdraw the state from the Regional Greenhouse Gas Initiative, a multi-state effort to limit emissions from the power sector. That particular portion of the budget agreement drew praise from Republicans, including Senate President Pro Tempore Kim Ward.\u00a0<\/p>\n \u201cIn a nutshell, this budget will not raise taxes on Pennsylvanians,\u201d Ward said while speaking on the Senate floor. \u201cThis budget will not raid our Rainy Day Fund \u2013 or the interest on the Rainy Day Fund. This budget will put money back in the pockets of working Pennsylvanians. This budget will help bring certainty to electric rates by taking us out of the (Regional Greenhouse Gas Initiative), and this budget will help businesses get up and running quicker by building upon the permit reform we did last year.\u201d<\/p>\n Senate Minority Leader Jay Costa also had good things to say about the budget that was advanced. \u201cI really do think it’s a good product of compromise \u2013 of policy and spend number and resources \u2013 and I think it’s worthy of our collective support,\u201d he said.\u00a0<\/p>\n With the state\u2019s 2025-26 budget finally complete, state Sen. Vincent Hughes, the minority chair of the Senate Appropriations Committee, acknowledged that the next budget cycle is right around the corner. \u201cAs soon as we get this one done, we gotta start working on the next one,\u201d he said with a smile on the Senate floor.<\/p>\n Oct. 30, 2025: State teachers\u2019 union warns of $5.3 billion in delayed payments to schools<\/p>\n The Pennsylvania State Education Association, a teachers\u2019 union representing roughly 178,000 educators across the state, estimates<\/a> that school districts statewide are waiting on $5.3 billion in delayed payments resulting from the ongoing state budget impasse in Harrisburg.<\/p>\n PSEA President Aaron Chapin stated in a press release on Thursday that the ongoing impasse \u201cis undermining everything our educators are working to achieve.\u201d<\/p>\n \u201cThe public schools serving Pennsylvania\u2019s poorest communities are getting hit the hardest. Instead of addressing inequities in our funding system, this budget impasse is making things much worse for those schools and the students they serve,\u201d Chapin said. \u201cBut this is not just a problem for the poorest school districts. It is beginning to hurt students everywhere, in school districts large and small \u2013 rural, urban, and suburban.\u201d<\/p>\n Pennsylvania has been without a state budget for more than 120 days as of the end of October.<\/p>\n Oct. 21, 2025: Senate sends $47.9 billion budget bill back to the House<\/p>\n With the state budget 113 days late, the GOP-controlled state Senate amended the budget bill previously approved by the House \u2013 Senate Bill 160<\/a> \u2013 resulting in a $47.9 billion spending plan. The bill passed the Senate with a 27-23 vote on Oct. 21, sending it back to the House for consideration \u2013 with no promise that House lawmakers will even consider it.<\/p>\n Senate Majority Appropriations Committee Chair Scott Martin said the most recent version of SB 160, if approved by the House and signed by the governor, \u201cwould ensure in the coming weeks that our school districts, our counties, our community partners would have money flowing\u201d into their coffers. State Sen. Joe Pittman, the Senate Majority Leader, also criticized Gov. Josh Shapiro over the ongoing stalemate.\u00a0<\/p>\n \u201cMaybe it\u2019d be helpful if the governor engaged in this in a real and meaningful way, and not travel all over the state taking potshots at so many members of this Senate Republican Caucus,\u201d he said, adding: \u201cWhat we have produced here today is a budget based on need.\u201d<\/p>\n Senate Minority Leader Jay Costa called the Senate GOP proposal a \u201cbudget that doesn\u2019t meet the needs of the Pennsylvanians,\u201d while state Sen. Sharif Street said it was \u201can unserious proposal in a serious moment.\u201d<\/p>\n \u201cWe need to pass something that can actually get to the governor\u2019s desk, that can provide real relief, not simply exercising in a process of ping pong, where we send something over that we know they\u2019re not going to approve,\u201d Street added.\u00a0<\/p>\n Shapiro, meanwhile, said at a press conference<\/a> prior to the Senate vote that the legislation considered by the Senate on Oct. 21 wasn\u2019t a serious proposal. \u201cIt\u2019s a joke,\u201d Shapiro said. \u201cIt doesn\u2019t actually meet the obligations of this commonwealth. It\u2019s a gimmick, and it\u2019s not designed to be serious or get the job done.\u201d<\/p>\n The governor also took a shot at the Senate, saying the chamber needs to \u201cdo a better job of actually showing up for work.\u201d<\/p>\n \u201cI introduced my budget 259 days ago. They\u2019ve managed to show up for work 35 days,\u201d he continued. \u201cAnd by the way, they get paid full-time for showing up for work only 35 days. I think that\u2019s offensive to the good people of Pennsylvania who work every day.\u201d<\/p>\n Oct. 8, 2025: Senate debates Garrity\u2019s loan program; Shapiro comments on budget<\/p>\n With Pennsylvania\u2019s budget impasse stretching past the 100-day mark, lawmakers entered October frustrated and itching to do something about the ongoing stalemate. In the Pennsylvania Senate, lawmakers voted to approve Senate Bill 1040<\/a> \u2013 legislation that would allow Treasurer Stacy Garrity to waive interest, costs and fees on loans administered through her short-term loan program designed to aid entities affected by the lack of state funding. The bill ultimately passed the chamber with a 29-20 vote. During debate on the Senate floor, Senate Democrats argued the state should be focused on passing a budget, not on short-term loans, and that Garrity lacks the legal authority to administer a loan program \u2013 a claim Republicans refuted.\u00a0<\/p>\n \u201cWhile we continue working to enact a complete 2025-26 budget, Senate Bill 1040 grants the treasurer the ability to waive interest on treasury loans, lessening the burden placed on those who need this money now,\u201d Senate Majority Leader Joe Pittman said in a statement on Wednesday.\u00a0<\/p>\n Meanwhile, in the state House, lawmakers voted to advance a budget bill that was approximately $1.2 million less than what Shapiro proposed in February. The chamber passed that bill, Senate Bill 160<\/a>, with a 105-98 vote, putting the onus back on the Senate. In remarks made following the House vote, Shapiro said he would sign SB 160 as passed by the House, and said the bill \u201cis a budget that cuts taxes, doesn’t raise them, that protects the Rainy Day Fund, and still manages to make critically important investments in my priorities.\u201d<\/p>\n Shapiro also accused Senate Republicans of playing politics with the state budget. \u201cIt has been 246 days since I introduced my budget. The Senate has only managed to come to work 32 times, and they have not passed a budget,\u201d the governor said. They sent last year’s product over to the House, which obviously everyone knows is not serious. We all know they’ve been playing political games, and we all know their political games haven’t worked.\u201d<\/p>\n Sept. 24, 2025: Garrity announces $500M loan program for Head Start providers, county governments<\/p>\n On Wednesday, Sept. 24, Pennsylvania Treasurer Stacy Garrity announced a $500 million short-term investment loan program designed to provide relief to entities affected by the state\u2019s ongoing budget impasse. The $500 million relief program will provide funds for county governments and Head Start providers that have been affected by the budget impasse. \u201cWe have no greater responsibility than to take care of our most vulnerable Pennsylvanians, and that\u2019s exactly what\u2019s being achieved by making these funds available,\u201d Garrity, who is running for governor in 2026<\/a>, said on Wednesday.<\/p>\n According to the Pennsylvania Treasury, entities that enter into loan agreements will be required to repay the initial investment, plus a 4.5% annual interest rate, within 15 days of the funds being released once a state budget is enacted. Those interested in the loans must use the funds for immediate operating expenses and agree to the loan\u2019s standard terms and conditions, according to the agency.<\/p>\n Garrity\u2019s announcement drew pushback from some who accused the treasurer of selectively determining where to direct relief funds. Angela Valvano, the executive director of the advocacy organization Better PA, accused Republicans of holding up a budget deal and questioned in a statement why Garrity\u2019s relief program only aids certain types of organizations. \u201cThis selective funding approach raises serious questions: Why assist only counties and a small subset of nonprofits while ignoring other crucial services like rape crisis centers, domestic violence shelters, and school districts?\u201d Valvano said. \u201cInstead of playing politics to cover for her party\u2019s obstruction, Treasurer Garrity should be using her influence to get a final budget done.\u201d\u00a0<\/p>\n Sept. 18, 2025: Shapiro expresses frustration with budget impasse<\/p>\n During an appearance in the Lehigh Valley<\/a> on Sept. 18 to promote B. Braun\u2019s planned $20 million manufacturing facility expansion, Gov. Josh Shapiro expressed his displeasure with Pennsylvania\u2019s ongoing budget impasse.\u00a0<\/p>\n \u201cI\u2019m frustrated that the legislature hasn\u2019t done its job. I\u2019m frustrated that they haven\u2019t done what they are, frankly, supposed to do. It\u2019s their one job is to put a budget on my desk,\u201d he said. He then put the onus on the GOP-controlled state Senate to advance a budget package that can move forward: \u201cI think what the Senate of Pennsylvania needs to do now is figure out how they can find 26 votes for a package that can pass in the Senate and also pass in the House.\u201d<\/p>\n \u201cI have run back and forth between the leaders of both chambers all summer,\u201d the governor added. \u201cWe have narrowed the differences. They know what the specific differences are, and it\u2019s up to them now to make some tough decisions.\u201d<\/p>\n Sept. 10, 2025: Pittman encouraged by talks but says there is \u2018no global agreement\u2019 yet<\/p>\n Citing the recent action taken by the Shapiro administration on public transit<\/a>, state Senate Majority Leader Joe Pittman provided an update on budget negotiations on Wednesday, noting that \u201cthe frequency and detail of discussions have increased and could allow for a budget agreement to be finalized within the next several days.\u201d<\/p>\n \u201cWhile I am encouraged by the meaningful work at the negotiating table, currently there is no global agreement on a budget deal, as several fiscal and policy issues remain outstanding,\u201d Pittman added. \u201cReaching consensus swiftly would prevent negative impacts of a budget impasse being shouldered by counties, school districts, hospitals and all those who rely on state government services.\u201d The Senate currently remains on 24-hour call, Pittman said.<\/p>\n Sept. 8, 2025: The Pennsylvania Senate returns to Harrisburg<\/p>\n One chamber of the Pennsylvania General Assembly is back this week for scheduled session days, and it remains to be seen whether this will be the week that state lawmakers reach agreement on a state budget \u2013 more than two months after the end of the state’s 2024-25 fiscal year. The Pennsylvania Senate is set to convene Monday at 1 p.m. for a voting session, with voting sessions also scheduled for Tuesday and Wednesday. However, the state House isn’t slated to return for a voting session until Sept. 29. You can watch the Senate session at these<\/a> links.<\/a><\/p>\n The Senate’s return to session comes after Gov. Josh Shapiro reportedly pitched a $49.9 billion “compromise budget”<\/a> to state lawmakers, and as House Majority Leader Matt Bradford has warmed to using Public Transportation Trust Fund dollars to fund mass transit, with conditions, according to The Philadelphia Inquirer.<\/a> On Monday morning, the Shapiro administration announced that it approved a request from SEPTA<\/a> to use up to $394 million in capital funding to maintain existing service levels<\/a> \u2013 a move that doesn\u2019t require the use of already-committed Public Transportation Trust Fund dollars.<\/p>\n Aug. 25, 2025: \u2018I think we are close\u2019 to budget deal, Shapiro says<\/p>\n Speaking with reporters in late August, Shapiro said he thinks a deal is within reach, though he said some within the Pennsylvania political sphere \u201cseek to slow the process down to hurt me politically,\u201d according to a post<\/a> from Spotlight PA reporter Stephen Caruso. The comments came a week after Pennsylvania Treasurer Stacy Garrity, a Republican, announced plans to run for governor<\/a> in 2026. On the topic of the budget, Shapiro added that he would be open to using funds from the Public Transportation Trust Fund<\/a> for a mass transit deal if lawmakers can find recurring revenue for transit systems.<\/p>\n Aug. 12, 2025: Senate approves budget bill, mass transit funding package<\/p>\n Similarly, the Republican-led state Senate advanced a budget bill<\/a> of its own on Aug. 12, along with a transit funding bill that proposed using dollars from the Public Transportation Trust Fund to fund mass transit and infrastructure needs. The General Fund budget legislation approved by the Senate, Senate Bill 160<\/a>, was a full-year $47.6 billion spending plan based on last fiscal year\u2019s spending numbers.\u00a0<\/p>\n July 14, 2025: House lawmakers pass budget legislation<\/p>\n Lawmakers in the Democratic-majority state House voted to pass a General Fund budget bill<\/a> on July 14 with a 105-97 vote<\/a>, though the legislation, which had a total spend number of $50.6 billion, was not a spending plan that was agreed to by all four legislative caucuses. The GOP-controlled state Senate ultimately never considered the legislation on the floor before voting on its own budget proposal a month later.\u00a0<\/p>\n June 30, 2025: Pennsylvania officials miss budget deadline<\/p>\n Despite having several months to negotiate a budget between the date of Shapiro\u2019s speech and the end of the state\u2019s fiscal year on June 30, Harrisburg officials were ultimately unable to reach agreement on a final product by that deadline. The missed budget deadline is becoming a common theme in Harrisburg, as state officials also failed to hit the June 30 deadline in 2023 and 2024.<\/p>\n Feb. 4, 2025: Shapiro gives budget address<\/p>\n