City & State’s 2025-26 Pennsylvania state budget tracker

Pennsylvania has now gone more than 100 days without a state budget – an impasse that is imperiling funding for county governments, public schools, mass transit and other essential services. 

As negotiations continue to drag on in Harrisburg, City & State has compiled a budget tracker for the 2025-26 fiscal year to keep you updated on the current status of the ongoing stalemate.

Oct. 8, 2025: Senate debates Garrity’s loan program; Shapiro comments on budget

With Pennsylvania’s 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 – 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 – a claim Republicans refuted. 

“While 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,” Senate Majority Leader Joe Pittman said in a statement on Wednesday. 

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, 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 “is 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.”

Shapiro also accused Senate Republicans of playing politics with the state budget. “It 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,” 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.”

Sept. 24, 2025: Garrity announces $500M loan program for Head Start providers, county governments

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’s 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. “We have no greater responsibility than to take care of our most vulnerable Pennsylvanians, and that’s exactly what’s being achieved by making these funds available,” Garrity, who is running for governor in 2026, said on Wednesday. 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’s standard terms and conditions, according to the agency.Garrity’s 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’s relief program only aids certain types of organizations. “This 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?” Valvano said. “Instead of playing politics to cover for her party’s obstruction, Treasurer Garrity should be using her influence to get a final budget done.” 

Sept. 18, 2025: Shapiro expresses frustration with budget impasse

During an appearance in the Lehigh Valley on Sept. 18 to promote B. Braun’s planned $20 million manufacturing facility expansion, Gov. Josh Shapiro expressed his displeasure with Pennsylvania’s ongoing budget impasse. 

“I’m frustrated that the legislature hasn’t done its job. I’m frustrated that they haven’t done what they are, frankly, supposed to do. It’s their one job is to put a budget on my desk,” he said. He then put the onus on the GOP-controlled state Senate to advance a budget package that can move forward: “I 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.”

“I have run back and forth between the leaders of both chambers all summer,” the governor added. “We have narrowed the differences. They know what the specific differences are, and it’s up to them now to make some tough decisions.”

Sept. 10, 2025: Pittman encouraged by talks but says there is ‘no global agreement’ yet

Citing the recent action taken by the Shapiro administration on public transit, state Senate Majority Leader Joe Pittman provided an update on budget negotiations on Wednesday, noting that “the frequency and detail of discussions have increased and could allow for a budget agreement to be finalized within the next several days.”

“While 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,” Pittman added. “Reaching 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.” The Senate currently remains on 24-hour call, Pittman said.

Sept. 8, 2025: The Pennsylvania Senate returns to HarrisburgOne 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 – 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 links.

The Senate's return to session comes after Gov. Josh Shapiro reportedly pitched a $49.9 billion "compromise budget" 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. On Monday morning, the Shapiro administration announced that it approved a request from SEPTA to use up to $394 million in capital funding to maintain existing service levels – a move that doesn’t require the use of already-committed Public Transportation Trust Fund dollars.

Aug. 25, 2025: ‘I think we are close’ to budget deal, Shapiro says

Speaking with reporters in late August, Shapiro said he thinks a deal is within reach, though he said some within the Pennsylvania political sphere “seek to slow the process down to hurt me politically,” according to a post from Spotlight PA reporter Stephen Caruso. The comments came a week after Pennsylvania Treasurer Stacy Garrity, a Republican, announced plans to run for governor in 2026. On the topic of the budget, Shapiro added that he would be open to using funds from the Public Transportation Trust Fund for a mass transit deal if lawmakers can find recurring revenue for transit systems.

Aug. 12, 2025: Senate approves budget bill, mass transit funding package

Similarly, the Republican-led state Senate advanced a budget bill 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, was a full-year $47.6 billion spending plan based on last fiscal year’s spending numbers. 

July 14, 2025: House lawmakers pass budget legislation

Lawmakers in the Democratic-majority state House voted to pass a General Fund budget bill on July 14 with a 105-97 vote, 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. 

June 30, 2025: Pennsylvania officials miss budget deadline

Despite having several months to negotiate a budget between the date of Shapiro’s speech and the end of the state’s 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.

Feb. 4, 2025: Shapiro gives budget address

Gov. Josh Shapiro delivered his annual budget address to members of the General Assembly, presenting a $51.5 billion spending plan that included continued increases in education funding, legalization of recreational cannabis, taxation and regulation of skill gaming machines, and funding for local mass transit agencies. The Democratic governor also proposed accelerating the state’s phased corporate tax cuts and advocated for reforms to Pennsylvania's cyber charter schools. Following Shapiro’s speech, lawmakers in both chambers proceeded to hold budget hearings to scrutinize and learn more about Shapiro’s executive budget proposal.