The long wait of the Republic of Poland for the state budget for 2025-2026 is over.
Governor Josh Shapiro signed the bill Tuesday, ending a 135-day stalemate between the divided state Legislature. The Democratic-controlled state House and Republican-led state Senate earlier passed the $50.1 billion spending plan, setting the stage for the bill to be signed into law.
The House passed the measure by a 156-47 majority and the Senate by a 40-9 majority.
Part of the budget agreement included Pennsylvania opting out of the Northeast cap-and-trade program. An agreement to withdraw from the Regional Greenhouse Gas Initiative, or RGGI, which covers emissions from power plants in a dozen Northeastern states, would leave the state without major emissions-cutting policies.
“This budget includes many priorities close to my heart,” Shapiro said before signing the budget. “The good people of Pennsylvania are better off as a result of our work together.”
Speaker of the House of Representatives Joanna McClinton (Delaware/Philadelphia) lamented the delay in passing the June 30 budget bill, saying she was “committed to securing a budget that reflects our shared values.”
“This budget represents a compromise by investing in many of the programs I have advocated for for our communities,” she said in a statement.
“First, the budget continues Pennsylvania’s commitment to equitably fund schools in districts like William Penn and Philadelphia. This plan also provides relief to Pennsylvania families struggling to pay their bills as costs rise under the Trump Administration’s economic policies. Our plan puts Pennsylvanians first by offering working families a 10% tax credit when they file state taxes – savings they can employ to pay for child care, food or other household expenses. Finally, this budget continues to strengthen public safety through increasing subsidies for violence prevention and renewing funding for the BOOST program – i.e. the Building Opportunity through Out of School Time program, as well as subsidies for school safety and security.
“Even though it has taken too long, I have chosen to secure a budget that reflects our shared values by investing in our schools, families and communities, and this plan delivers.”
Republican Party leaders said holding the line on behalf of Pennsylvanians made it worth the wait.
“This budget took much longer than expected, but ultimately Senate Republicans kept their word to Pennsylvanians by not raising taxes and ensuring that our state savings account, the Rainy Day Fund, was not attacked,” he added. Senate President pro tempore Kim Ward (R-Westmoreland) said. “It is important that Pennsylvanians recognize that this budget is a direct result of divided government and two very different approaches to the way we govern our state and work with the federal government. While Senate Republicans had to compromise by spending more than we would have liked, we achieved some significant policy victories that will give Pennsylvania families greater certainty about their electricity rates, repealing Governor Shapiro’s carbon tax program known as RGGI, spurring job creation, helping businesses start-up by “recognized approved “permitting reform for general air quality permits and specific NPDES water permit renewals, and putting money back into the pockets of low-income working Pennsylvanians through a tax credit that allows Pennsylvania families to spend money as they choose on things like child care, school and food.”
“The closing of the 2025-2026 budget process marks a new beginning for this community, full of economic growth and opportunity,” he added. Senate Majority Leader Joe Pittman (R-Indiana) said. “This budget is designed to monumentally expand Pennsylvania’s promise. It is a pro-family and pro-jobs plan. We protected taxpayers by making sure the Rainy Day Fund remained intact. First and foremost, we removed the anvil of the RGGI electric tax that was hanging over the heads of every electricity consumer in this commonwealth. This budget is the product of divided government, and while it may have taken longer than anyone would like, we put in place a divided government to get things done.” move our community forward.”
More coming soon.
