The Capital Budget Act of 2025-2026 establishes the financial framework for capital projects in Pennsylvania for the fiscal year 2025-2026. The act specifies a maximum principal amount of additional debt to be incurred, totaling $1,570,000,000, which will be allocated across various categories of capital projects. These categories include public improvement projects, furniture and equipment, transportation assistance projects, redevelopment assistance projects, and flood control projects, with specific amounts designated for each category. Notably, there is no funding allocated for flood control projects.

The act outlines that the repayment of this debt will be charged to either the General Fund or a Special Fund, as applicable, depending on the category of the project. The legislation is set to take effect immediately upon enactment, ensuring that the capital budget can be implemented without delay.