HARRISBURG - There is no enacted Pennsylvania budget yet. As of the time of this writing, Pennsylvania remains without a finalized budget, now some seven weeks past the statutory June 30 deadline.
House vs. Senate tension: The Democratically-controlledHouse passed a $50.6 billion spending bill in mid-July, trimming ~$900 million from Gov. Shapiro’s $51.5 billion proposal from February.
But the GOP ControlledSenate has not agreed, pushing for further changes.
Ongoing high-stakes negotiations: Talks are described as "cordial" but painstaking, with core disagreements over mass transit funding, Medicaid costs, tax revenues (like skill games vs. cannabis legalization), impacting tens of billions in spending.
Immediate Impacts
$2.5 billion in delayed funding: Most of that includes:
$2 billion for schools and educational programs
$542 million for health and human services, including county child welfare
Contractors with state contracts will not be paid.
Counties alarmed: Without an enacted budget, counties can’t distribute funds for mental health, child protection, homelessness services, and other essential programs, raising serious concerns statewide.
SEPTA faces service cuts: Southeastern Pennsylvania’s transit authority must secure $213 million by August 14 to avoid fare hikes and service reductions. Budget delay continues to threaten these vital services.
What’s Next
Short-term plan brewing: The Senate may propose a stopgap (six-month) budget to keep programs funded temporarily, although state Democrats strongly oppose this, insisting on a full 12-month budget.
Continued negotiation pressure: Funding for transit, Medicaid reform, and revenue streams remain top points of contention as lawmakers talk behind closed doors.