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Pennsylvania Legislature Passes $50.1 Billion Budget, Sending It to Shapiro After Months-Long Impasse

Relief for schools and services will begin once Gov. Josh Shapiro signs after a deal that trades an RGGI pullback for higher education aid.

Overview

  • The House approved the plan 156-47 and the Senate voted 40-9, moving the package to the governor for expected signature today.
  • Authorized spending rises by about $2.5 billion, with nearly all new money directed to Medicaid and K‑12 education.
  • The agreement includes more than $665 million in new public‑school funding, with roughly $562 million routed through adequacy and tax‑equity formulas tied to a 2023 court ruling.
  • Democrats agreed to back off the Regional Greenhouse Gas Initiative to secure GOP support, while winning a new earned income tax credit and changes to cyber charter oversight and payments.
  • The deal restores delayed aid that forced districts and providers to borrow, including Philadelphia’s costly short‑term loan, and a separate proposal would reimburse schools for interest and fees.