📰 The DT Firm Weekly Update: July 20, 2025

🏛️ PA Budget Update: Progress, But Time is Running Out

“There’s a real path forward” — but we’re not there yet.

As we enter the fourth week of Pennsylvania’s budget impasse, there’s cautious optimism among state leaders — even as both the House and Senate are currently not scheduled to return to session this week. That said, plans can change quickly: both chambers can be called back to Harrisburg with 24 hours’ notice. We’ll be watching closely and will keep you updated.

Last Monday, the state House passed a $50.6 billion spending plan, reduced from Governor Shapiro’s original $51.5 billion proposal. While this marks the first formal step toward a budget agreement, the Senate Republican majority has not yet signed on, expressing a desire to further reduce overall spending.

Governor Josh Shapiro, Senate Majority Leader Joe Pittman, and House Majority Leader Matt Bradford continue to meet behind closed doors in hopes of bridging the gap. The primary points of contention? A $5.5 billion shortfall, proposed use of state reserves, and major policy items like Medicaid expansion, mass transit funding (including SEPTA), and whether to tax or regulate skill games and adult-use cannabis.

Despite partisan differences, leaders from both chambers have signaled progress. “I feel very good,” said Pittman after leaving a recent negotiating session. Shapiro echoed that sentiment, saying he is “feeling optimistic” about reaching a final agreement.

Meanwhile, without a finalized budget, the financial strain is starting to show: public school districts, universities, and nonprofits expecting payments from the state are increasingly forced to plan around the uncertainty.

We’ll continue to monitor developments in Harrisburg. Should either chamber be called into session or a budget deal come into focus, we’ll provide timely updates.

📖 Related Reading:

• Gov. Josh Shapiro and top Pa. lawmaker say they’re getting closer to a budget deal (Inquirer)

🏛️ Budget Impacts

Pennsylvania lawmakers continue to negotiate a state budget that is now more than two weeks overdue. While talks have progressed, critical payments for education and county-level services remain in jeopardy.

• County Services at Risk: Without a finalized budget, August payments to counties for child welfare, mental health, substance use treatment, and juvenile programs are uncertain. Counties may need to resort to loans or delay local projects to bridge funding gaps.
  📖 Read more from ABC27

• Education Funding in the Crosshairs: K-12 schools are set to miss a major $1.1 billion payment if no deal is reached soon. Public universities, community colleges, and preschool programs could also be affected, as they were during the 2023 impasse.
  📖 Spotlight PA on budget impacts
  📖 WESA on ongoing negotiations

📚 Education Spotlight: Solar in Schools

A new bipartisan effort seeks to help Pennsylvania schools reduce long-term costs and emissions through solar energy investments. The proposal is part of budget-related discussions and could have broad implications for rural and urban districts alike.
📖 Spotlight PA on Solar Schools Bill

🏥 Health Policy Watch

• Rural Health Funding Questions: National concern over whether the federal government’s $50B rural health investment will be enough to stabilize care in under-resourced regions—Pennsylvania included.
  📖 Stateline report

• Counseling Compact Consideration: Pennsylvania may join a multi-state compact easing licensure for mental health counselors, improving access to care across state lines.
  📖 PA Capital-Star coverage

• Hospitals Under Strain: More than half of Pennsylvania hospitals reported breaking even or losing money in the last fiscal year, signaling stress on the healthcare system.
  📖 PennLive report

🌿 Cannabis Legalization: Momentum or Mirage?

• Small Business Hope: Advocates argue that legalization of adult-use cannabis could open doors for small, minority-owned businesses in Pennsylvania.
  📖 Capital-Star analysis

• Senate Resistance: Key Senate Republicans remain opposed, casting doubt on whether cannabis proposals will be included in any final budget package.
  📖 Lancaster Online coverage

🗳️ Campaign Finance + 2026 Outlook

• Congressional Cash Haul: Rep. Scott Perry raised nearly $900,000 this quarter, while Democrat Janelle Stelson brought in over $500,000 in the 10th District race.
  📖 PennLive breakdown

• Entitlement Cuts as 2026 Issue: Analysts warn that cuts to Medicaid and SNAP could become a potent campaign issue in 2026, especially for GOP lawmakers.
  📖 More from PennLive

💼 Other Political Developments

• Gov. Shapiro’s Tech Pivot: In a bipartisan move, Gov. Josh Shapiro is backing initiatives to expand jobs in emerging technology sectors.
  📖 MSN article

• Federal Judge Nomination: Trump-era attorney Emil Bove has been nominated for a federal judgeship in Philadelphia, raising eyebrows on both sides of the aisle.
  📖 Philadelphia Inquirer report