An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in reimbursements by Commonwealth and between school districts, providing for reimbursements for borrowing costs during budget impasse; and establishing the School District Impasse Recovery Fund.

PRINTER'S NO. 2584
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2025
Session of
2025
INTRODUCED BY CURRY, PROBST, WEBSTER, RIVERA, KHAN, SAPPEY,
HOHENSTEIN, DONAHUE, HILL-EVANS, SANCHEZ AND HARKINS,
NOVEMBER 10, 2025
REFERRED TO COMMITTEE ON APPROPRIATIONS, NOVEMBER 12, 2025
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in reimbursements by Commonwealth and
between school districts, providing for reimbursements for
borrowing costs during budget impasse; and establishing the
School District Impasse Recovery Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding a
section to read:
Section 2599.9. Reimbursements for Borrowing Costs During
Budget Impasse.--(a) The following shall apply to the School
District Impasse Recovery Fund:
(1) The School District Impasse Recovery Fund is
established.
(2) Money in the fund is appropriated on a continuing basis
to the department for the purpose of providing reimbursements in
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
accordance with this section.
(3) The fund shall consist of all money appropriated for use
under this section and any interest that accrues on the money.
(4) Money in the fund:
(i) May only be used for the reimbursements authorized under
this section.
(ii) May not be transferred or diverted to any other purpose
by administrative action.
(iii) Shall be used to reimburse school entities for
eligible expenses incurred during an impasse period in
accordance with this section.
(b) The department shall reimburse school entities for all
eligible expenses incurred during an impasse period in the
fiscal year following the fiscal year in which the impasse
period occurred.
(c) The total amount of reimbursement under this section for
a school entity may not exceed the documented eligible expenses
submitted by the school entity.
(d) The department shall develop an application to enable
school entities to apply for reimbursement under this section.
The application must include:
(1) Itemized documentation of each claimed eligible expense.
(2) Proof of payment or financial obligation.
(3) Certification by the school entity's business
administrator.
(4) Other information deemed necessary by the department.
(e) The department shall determine the method or manner in
which applications under this section are submitted to the
department.
(f) Applications for reimbursement under this section must
20250HB2025PN2584 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
be submitted to the department no later than forty-five (45)
days following the end of the impasse period.
(g) Not later than thirty (30) days following receipt of an
application submitted in accordance with this section, the
department shall review the application and, as appropriate,
approve the reimbursement.
(h) Not later than May 31 of the year following an impasse
period, the department shall provide the following with
aggregated data on the total eligible expenses incurred during
the impasse period:
(1) The Governor.
(2) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(3) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(4) The chairperson and minority chairperson of the
Education Committee of the Senate.
(5) The chairperson and minority chairperson of the
Education Committee of the House of Representatives.
(i) The General Assembly shall appropriate money to the fund
sufficient to reimburse school entities for all eligible
expenses in the General Appropriation Act enacted for the fiscal
year following the end of an impasse period.
(j) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Department" shall mean the Department of Education of the
Commonwealth.
"Eligible expenses" shall include:
(1) Interest on short-term borrowing.
20250HB2025PN2584 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) Fees for lines of credit.
(3) Penalties for deferred payments to vendors or service
providers.
(4) Other costs associated with emergency financial measures
taken due to an impasse period.
"Fund" shall mean the School District Impasse Recovery Fund
established in subsection (a)(1).
"Impasse period" shall mean a period after the beginning of a
new fiscal year during which the General Appropriation Act for
that fiscal year has not been enacted.
"School entity" shall mean a school district, intermediate
unit or area career and technical school.
Section 2. This act shall take effect immediately.
20250HB2025PN2584 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13