The budget impasse lasted more than 100 days, and it hurt organizations in Pennsylvania including our schools and nonprofits. In particular, it is estimated that over $5.3 billion in education funding and more than $560 million of funding for nonprofits was impacted due to the budget impasse. As a result, these organizations were placed in dire financial situations and were forced to take necessary actions in order to remain open, which included taking out loans with high interest rates and fees.
 
To address this, we intend to introduce legislation that will back fill any interest accrued by entities that receive state funding which were forced to take out loans during the recent budget impasse. Currently, these organizations do not receive reimbursement for the interest they accrue as a result of a budget impasse. This not only hurts the organization, but it can also impact taxpayers by forcing school districts or counties to increase taxes in order to offset the costs. Therefore, by reimbursing organizations for the interest they accrued during the 2025 budget impasse, we can help them with these costs without raising taxes or taking other measures that would be more costly to our constituents.   

Please join us in co-sponsoring this important and timely legislation.