Harrisburg, Pa., August 12, 2025 — Today, the Pennsylvania Senate is advancing a spending bill that provides the clearest path forward in months toward a sustainable state budget. The commonwealth is now well into the second month of a protracted impasse, operating without a state budget in place. Despite Gov. Josh Shapiro declaring in June that a deal was “very, very close,” questions persist about his ability to negotiate a good-faith compromise amid the stalled process.
In February, Shapiro proposed an unserious $51.5 billion budget that represents almost $7 billion more than net revenues, based on the Independent Fiscal Office’s latest forecast.
The Senate also passed a bill to increase funding for roads, bridges, and mass transit—by using “shadow budget” funds the state has been sitting on, rather than asking taxpayers to pay more.
Megan Martin, Chief Operating Officer and General Counsel of the Commonwealth Foundation, issued the following statement:
“The Senate has taken an important step toward a fiscally responsible budget that puts taxpayers first. While any final agreement must include expanded educational opportunity, their plan is the clearest path forward after months of wasted time, unserious proposals, and failed leadership at the hands of the governor and House Democrats. Senate Republicans have rejected political gimmicks and shown their commitment to allowing funds to flow, rather than holding schools and services hostage to Governor Shapiro’s unrealistic demands.
“Pennsylvanians overwhelmingly demand fiscal responsibility, and the Senate’s proposal charts a course in the right direction. It’s time for Governor Shapiro and House Democrats to join them in finalizing a realistic compromise that prioritizes responsible spending and averts a tax hike that Pennsylvanians simply can’t afford.”
Kevin Kane, Director of Legislative Strategy, added:
“Governor Shapiro’s radical spending proposal and unwillingness to compromise have forced this protracted impasse. His plan is a non-starter that would impose a $2,000 tax hike on Pennsylvania families. While Gov. Shapiro proposed his unserious proposal back in February, he has yet to say what taxes he will raise to pay for his budget. Instead of showing leadership to resolve a crisis of his own making, Shapiro has been distracted by out-of-state travel to raise his national profile.
“Both Shapiro and House Democrats have failed to act as credible brokers at the negotiating table. Amid continued political theater, their proposals have long remained dead on arrival in the legislature. Despite their insistence on deficit spending—and their out-of-touch obsession with yet another SEPTA bailout—Shapiro and House Dems refuse to acknowledge that we can’t afford their reckless spending. Pennsylvanians deserve more—and they expect Governor Shapiro to step up and provide the type of leadership he promised as a candidate but has failed to deliver since taking office.”
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