An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, providing for the Budget Impasse Reimbursement Program and for grants to certain eligible entities; and establishing the Budget Impasse Reimbursement Restricted Account.

PRINTER'S NO. 1339
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1102
Session of
2025
INTRODUCED BY L. WILLIAMS, MUTH, SAVAL, KEARNEY, CAPPELLETTI,
KIM, BOSCOLA, SCHWANK, PISCIOTTANO, COLLETT, SANTARSIERO,
COMITTA, STREET, FONTANA, KANE, HAYWOOD, MILLER, TARTAGLIONE
AND MALONE, DECEMBER 4, 2025
REFERRED TO FINANCE, DECEMBER 4, 2025
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection, for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
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other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
Commonwealth," providing for the Budget Impasse Reimbursement
Program and for grants to certain eligible entities; and
establishing the Budget Impasse Reimbursement Restricted
Account.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.343, No.176), known
as The Fiscal Code, is amended by adding an article to read:
ARTICLE XIX-B
BUDGET IMPASSE REIMBURSEMENT PROGRAM
Section 1901-B. Scope of article.
This article relates to the Budget Impasse Reimbursement
Program.
Section 1902-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Budget impasse." The period between July 1, 2025, and
November 12, 2025.
"Eligible entity." A school district, county, human services
provider, prekindergarten provider, Head Start provider,
nonprofit organization or any entity that receives funding from
the Commonwealth, either directly or through a Commonwealth
agency, in accordance with the act of November 12, 2025 (P.L. ,
No.1A), known as the General Appropriation Act of 2025, and
received funding from the Commonwealth during the 2024-2025
fiscal year. The term does not include an entity that received
funding from discretionary agency programs or competitive agency
programs in the 2024-2025 fiscal year.
"Grant." A grant awarded under the program.
"Impasse-generated interest." Interest income accrued in the
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General Fund as a result of delayed expenditures or transfers
during the budget impasse.
"Office." The Office of the Budget of the Commonwealth.
"Program." The Budget Impasse Reimbursement Program
established under this article.
"Restricted account." The Budget Impasse Reimbursement
Restricted Account established under this article.
Section 1903-B. Budget Impasse Reimbursement Program.
(a) Establishment.--The Budget Impasse Reimbursement Program
is established within the office.
(b) Administration.--The office shall administer the program
to reimburse eligible entities, in the form of grants, for
documented financing costs or interest income lost by an
eligible entity directly attributable to the budget impasse.
(c) Application.--The office shall develop and make
available an application for an eligible entity to apply for a
grant.
(d) Deadline for applications.--An application for a grant
must be received by the office no later than 90 days after the
effective date of this subsection.
(e) Review.--The office shall review an application
submitted for a grant and, if determined by the office to be
eligible, shall award a grant to the eligible entity.
(f) Amount of grant.--A grant to an eligible entity may not
exceed the amount of financing costs or interest income lost by
the eligible entity directly attributable to the budget impasse.
(g) Guidelines.--The office shall develop and publish
guidelines to implement this article.
Section 1904-B. Budget Impasse Reimbursement Restricted
Account.
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(a) Establishment.--The Budget Impasse Reimbursement
Restricted Account is established in the State Treasury. The
money in the restricted account is appropriated on a continuing
basis to the office for the purpose of paying grants.
(b) Source of funding.--The restricted account shall consist
of money transferred from the General Fund and the Budget
Stabilization Reserve Fund as provided in this section.
(c) Duty of State Treasurer.--Within 30 days of the
effective date of this subsection, the State Treasurer shall
calculate the amount of impasse-generated interest and report
the amount to the office.
(d) Transfers.--
(1) Within 90 days of the effective date of this
paragraph, an amount equal to the impasse-generated interest
shall be transferred from the General Fund to the restricted
account.
(2) If the amount transferred under paragraph (1) is
insufficient to pay grants to all eligible entities, the
office shall calculate the amount of the insufficiency and
shall report the amount to the State Treasurer. Upon receipt
of the report from the office, the State Treasurer shall
transfer the amount from the Budget Stabilization Reserve
Fund to the restricted account.
Section 1905-B. Reporting.
The office shall submit a report on the program to the
Governor, the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the chairperson and
minority chairperson of the Appropriations Committee of the
House of Representatives. The report shall include:
(1) The total amount of impasse-generated interest.
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(2) The total amount awarded in grants.
(3) The number and types of eligible entities that
received a grant.
(4) The methodology used to calculate the amount of a
grant.
Section 2. This act shall take effect in 60 days.
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