The Budgetary Impasse Investment Loan Act authorizes the State Treasurer of Pennsylvania to waive interest on investment loans made during specific budgetary impasses. These impasses are defined as the periods from July 1, 2025, to the effective date of the General Appropriation Act for the 2025-2026 fiscal year, and from July 1, 2026, to the effective date of the General Appropriation Act for the 2026-2027 fiscal year. The loans are intended to provide short-term funding support to various loan recipients, including county governments, domestic violence entities, Head Start agencies, rape crisis entities, and approved providers under the Pennsylvania Pre-K Counts Program.

The bill grants the State Treasurer the discretion to waive any interest, costs, or fees associated with these loans without violating fiduciary investment standards outlined in the Fiscal Code. The act is retroactively applicable from July 1, 2025, and takes effect immediately upon enactment.