Governor Josh Shapiro signed the 2025-26 Pennsylvania Budget into law yesterday afternoon.
The approval of the spending plan brought a four-month impasse to an end and will start moving funds to counties, school districts and non-profit organizations that provide critical public services. The vote in the State House was 156-47 while in the Senate, it moved forward with a 41-9 vote. State Representatives Jim Struzzi and Brian Smith voted in favor of the measure as did State Senator Joe Pittman.
One of the key items of the budget is the removal of Pennsylvania from the Regional Greenhouse Gas Initiative, or RGGI. Pennsylvania’s entry into the cap and trade compact was started by an executive order from Former Governor Tom Wolf in 2019, but it was declared unconstitutional in 2023.
The total budget represents an increase of $2.27 billion from last year, but it leaves the state with roughly $200 million in reserves and the rainy day fund untouched.
It’s not known at this time when the state subsidies will start going to their respective organizations.
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