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, the act allows for the use of either the General Fund or a Special Fund for certain projects, depending on their nature.

The act also outlines that the debt incurred will be repaid from the designated funds, ensuring accountability and financial management. The effective date of the act is immediate upon enactment, allowing for prompt implementation of the capital budget provisions. This legislative measure aims to facilitate necessary improvements and developments across the state while adhering to constitutional guidelines regarding capital project financing.