Jul 22 State Budget Impasse Continues

(July 22, 2025)

Lately so much of the focus has been on the federal side of things, however, now that the budget legislation is done at that level – read more about the impacts here – attention is shifting to the state budget. As we enter the end of July, the state budget continues to not be finalized. In recent weeks there has been some movement in both chambers, but it remains unclear if the House and Senate are making progress in budget negotiations.

On July 14, the PA House of Representatives advanced a budget bill that was $1 billion less than the Governor’s proposal, but $2.7 billion over last year’s budget. The bill, HB 1330, passed in the House with all Democrats and three Republicans voting yes. The bill then advanced to the Senate where it was “gutted” in the Appropriations Committee. This is typical, the House legislation will serve as a vehicle for the Senate to insert their own budget text, in place of the House’s version.

The House-passed bill included a $4.5 billion increase in Human Services, $930 million increase for K-12, and $76.5 million for Violence Intervention and Prevention programs – which includes Building Opportunities through Out of School Time (BOOST). It is important to remember that it is unlikely that the Senate will include these amounts in their bill and that we will likely see a change in the funding amounts approved by the House in a final bill.

A new school year is just around the corner and school districts, OST programs, nonprofit organizations and others need to know their state allocations as they navigate unknown territory with the federal changes. With the One Big Beautiful Bill legislation enacted, cuts to Medicaid and SNAP looming, and the freezing of federal education funds, it is crucial that Pennsylvania enact a final state budget that heavily invests in children and families.

Jamie Baxter, Allies for Children Executive Director