Pennsylvania Budget Impasse Ends with Bipartisan Votes

Rep. Danielle Friel Otten November 14, 2025 | 4:38 PM

PA Representative Danielle Otten banner image

Dear Neighbor,

The state budget is finally complete after months of stalling by Senate leadership followed by some intense debate, negotiation, and compromise. It was a lengthy and frustrating process that caused real pain and, in many cases, extra costs for school districts, counties, and nonprofits that depend on state funding to deliver critical services.

I voted in support of this budget, which ends the four-month impasse and delivers for Pennsylvanians on many important priorities. This budget represents meaningful progress for families across the Commonwealth. It invests in our schools, strengthens health care and human services, supports childcare, and drives community and economic development, all without raising taxes or dipping into the Rainy Day Fund.

At the same time, it's the worst budget for the environment in decades, and we have to be honest about that.

There is much good in this budget, and I want to begin by highlighting the investments that will make a real difference for families, schools, and communities across our commonwealth. We will also talk about where this budget falls short, but first let’s look at the progress we were able to achieve.

Investments in K-12 Education

For the second year in a row, this budget takes a significant step toward meeting our constitutional obligation to ensure every student, regardless of zip code, has the resources they need to succeed. It fully funds the second installment of adequacy and tax equity payments, a $565 million increase statewide. Locally, that means significant funding increases for the Coatesville Area School District, which will see a net increase of $6.3 million, or 12.6% over 2024-2025, and the Downingtown Area School District, which receives a net increase of $1.8 million or 6.5%.

We also delivered long-overdue reforms to cyber charter schools. With 65,000 students enrolled in cyber charters statewide, too many have gone unseen and unsupported. This budget requires that cyber charter students MUST been seen at least once a week, either on camera or in person, to protect their safety and wellbeing. It establishes clear attendance policies, requires reporting of unexcused absences, and prevents students who are habitually truant from falling through the cracks.

On funding, this budget changes the cyber charter tuition rate to better reflect actual costs, saving taxpayers $178 million statewide. These reforms strengthen accountability for publicly funded cyber charters, helping to ensure that public dollars go directly into classrooms and educational programs, not bonuses, unexplained payments to for-profit management companies, or perks that have nothing to do with students’ education.

Beyond increased funding and cyber charter reforms, the budget invests $100 million in school safety and mental health grants, helping districts build safer environments and expand access to critical services for students. It also increases support for public libraries by more than 7%, ensuring communities have access to resources that foster learning and opportunity.

Higher Education

This budget makes important strides in supporting students and strengthening our higher education system. One of the programs I am most proud to see continued is the Student Teacher Support Program, which is level-funded at $30 million. This initiative, which I sponsored and championed in previous sessions, removes barriers for prospective teachers by ensuring that aspiring student teachers receive financial support during their training.

The budget also provides continued funding for Pennsylvania’s public colleges and universities. PASSHE and community colleges will receive ongoing support to maintain stability for institutions that serve thousands of students across the Commonwealth. State-related universities, including Penn State, Pitt, Temple, and Lincoln University also benefit from continued funding, preserving access to higher education opportunities for Pennsylvania families.

Health and Human Services

This budget makes significant investments in the health and wellbeing of Pennsylvanians. The Medical Assistance Managed Care program receives an 8% increase, which strengthens care for seniors and individuals with disabilities while supporting the workers who deliver these services. We also secured a 6.1% increase for the Intellectual Disabilities – Community Waiver Program, maintaining the rate adjustments and waiver spots that were added in last year’s budget to ensure individuals and families continue to receive the services they require. Lastly, the budget invests $25 million for Child Care Worker Retention and Recruitment. This initiative provides raises to recruit and retain workers in the childcare sector, helping stabilize a workforce that is essential to families across the Commonwealth.

Community and Economic Development

This budget invests roughly $100 million in community and economic development programs that strengthen local economies and create opportunities across Pennsylvania. This funding will support business growth, workforce development, neighborhood revitalization, and transparency in government. Programs such as Pennsylvania First, Main Street Matters, and the Ben Franklin Technology Authority Fund, and support for historically disadvantaged businesses continue to receive resources, while BusinessPA adds a new tool to help connect businesses with the support they need.

By directing funding into a wide range of initiatives, from marketing and regional partnerships to local government and community revitalization, this budget helps attract new businesses, support innovation, and build stronger, more resilient communities.

Fighting Food Insecurity

This budget makes strong investments to help families put food on the table and support Pennsylvania’s small farms and agricultural economy. Funding for Farmers Market Coupons increases by $7 million, a 271% boost that expands access to fresh, local produce for seniors and families while supporting Pennsylvania farmers.

The State Food Purchase Program receives a 15% increase, strengthening food banks and community partners across the Commonwealth. This includes support for the core program as well as the Pennsylvania Agricultural Surplus System (PASS), which connects surplus farm products with families in need.

Together, these investments reduce food insecurity, cut down on waste, support our farmers, and ensure that more Pennsylvanians have access to healthy, nutritious meals.

Working Pennsylvanians Tax Credit

This budget delivers a $200 million tax cut for working families through the creation of the Working Pennsylvanians Tax Credit. Modeled after the federal Earned Income Tax Credit, it provides a new state tax credit equal to 10% of whatever a taxpayer receives from the federal program. For example, a family that qualifies for a $2,000 federal credit would see an additional $200 from Pennsylvania, making the benefit simple and easy to understand.

Almost a million hardworking Pennsylvanians qualify, with families receiving up to $800 back depending on household size. Even individuals without children benefit, with credits starting at $65. By putting money directly back into the pockets of working people, this tax cut will help families afford things like groceries, utilities, and gas while strengthening local economies across the Commonwealth.

Budget Shortcomings

The investments in public schools, health and human services, and tax relief are critical for Pennsylvania families, and House Democrats fought hard for their inclusion. At the same time, we need to acknowledge and talk about the ways in which this budget falls short.

While these areas saw meaningful investments, environmental and energy priorities were sidelined and compromised. That failure leaves Pennsylvania unprepared to meet the challenges of climate change, energy reliability, and long-term sustainability.

With schools, hunger relief, healthcare services, and other essential programs on the line, Senate Republicans refused to negotiate a budget unless House Democrats agreed to withdraw Pennsylvania from the Regional Greenhouse Gas Initiative (RGGI), a move that undermines our ability to reduce emissions and modernize our energy future.

To be clear, Pennsylvania has never officially entered RGGI because Republicans filed a court order to block our participation back in 2022, and the issue has been in the courts ever since. While I consistently supported, advocated for, and voted for RGGI, it was never a comprehensive solution to our climate crisis, although it represented a responsible step toward addressing carbon emissions.

I believe that Pennsylvania can meet its climate goals without RGGI, but we cannot meet them without meaningful, forward-thinking energy and environmental policies, and we can’t move those policies forward in a divided legislature if one chamber refuses to engage. And now, with RGGI off the table, Republicans have no excuses left to avoid serious, long-overdue conversations about Pennsylvania's energy future.

The state budget process begins again in just three short months. We need to set our sights on avoiding another standoff in 2026, realigning our priorities, and finally addressing environmental and energy policy at this critical moment. Next week, the House is scheduled to vote on my PRESS legislation (HB 501), which would increase grid reliability, reduce emissions, and lower energy costs for consumers. With the budget finally behind us, it is time to move past gridlock and deliver policies that meet the challenges ahead.

If you have questions or would like to provide feedback on any legislative or state-related issue, please contact my district office at repotten@pahouse.net.

Upcoming Events

Fall Food Drive

Thanksgiving is right around the corner, so my office has partnered with the Chester County Food Bank for a Fall Food Drive to help support residents of Chester County.

Help support residents of Chester County by donating food items from now until Friday, November 21.

The most needed food items are:

Canned/Pouch Chicken
Canned/Pouch Tuna
Pasta
Canned Ready to Eat Meals (like Beef Ravioli or Chili)
Breakfast/Granola Bars
Cereal

Other greatly needed pantry items:

Pasta Sauce / Canned Tomatoes
Canned Soup & Stews (pop-top appreciated)
Fruit (in juice), canned & individual cups
Healthy Snacks for Kids (nut free trail mix, popcorn, individual cracker bags, goldfish)
Peanut Butter (no high fructose corn syrup, look for the brown lid)

*low-sodium, low-sugar, no high fructose corn syrup when possible*

PLEASE NO GLASS CONTAINERS OR EXPIRED ITEMS!

Holiday Toy Drive

Help support Chester County families this holiday season by donating NEW, UNWRAPPED TOYS to our Holiday Toy Drive, benefiting Marine Toys for Tots - Chester and Montgomery Counties, PA.

Donations can be dropped off to our District Office Monday - Friday, 9 AM - 4:30 PM until Wednesday, December 10.

Please call 484-200-8259 with any questions.

SNAP Benefits Resumed Following End of Federal Government Shutdown:

The Pennsylvania Department of Human Services (DHS) has restarted issuing full November Supplemental Nutrition Assistance Program (SNAP) benefit payments, ending the disruption created by the federal government shutdown.

Benefits will be issued as quickly as possible, and DHS expects that all November SNAP benefits should be received by the weekend. SNAP recipients can check their EBT card balance with?the ConnectEBT app or website. DHS strongly encourages SNAP recipients to use ConnectEBT to?keep their card locked?when the card isn’t in use to protect their benefits from skimming or theft.

Beyond the program’s critical health and food benefits, SNAP is also an economic driver for Pennsylvania’s local businesses. In Pennsylvania, more than 10,600 retailers accept SNAP benefits for food purchases across 38,000 locations. Disrupting this program affects the economic well-being of vendors, farmers, and grocers across Pennsylvania. According to the USDA’s Economic Research Center, each $1 issued in SNAP benefits grew Pennsylvania’s economy by $1.54 through job retention, creation, and income for farms and other agricultural producers.?

2025 Property Tax/Rent Rebate Application Deadline Nearing

The deadline to file Property Tax/Rent Rebate applications, for rebates on property taxes or rent paid in 2024, is December 31, 2025. The state began issuing rebate checks on July 1, so the sooner you file, the sooner you will receive your rebate if eligible!

Thanks to changes passed in 2023, more people are eligible, with income limits adjusted to keep pace with Social Security cost-of-living adjustments. The Property Tax/Rent Rebate program has made it easier for seniors in Chester County to stay in their homes and afford groceries, medicine, and so much more.

The Property Tax/Rent Rebate Program benefits eligible Pennsylvanians ages 65 and older, widows and widowers ages 50 and older, and people with disabilities age 18 and older.

Please call or stop by my office to find out if you’re eligible and get assistance applying for your rebate. We’d be glad to answer any questions and set up an appointment to help you complete your application online!

For those who prefer to file by mail, paper applications will be available in my office soon, and we will update here when they come in.

SEPTA Senior Key Cards and Card Renewals

If you have a SEPTA Senior Key Card that has expired or will expire within the next month, we can renew it in our district office. To renew your card before it expires, please stop by my district office, or call us to make an appointment.

My office can also process applications and take photos for new SEPTA Senior Key ID Cards, which allow seniors 65 and older to travel for free on all SEPTA Regional Rail and transit routes within Pennsylvania. Just stop by my district office and bring a form of ID with your date of birth on it, such as a PA driver’s license or non-driver ID, U.S. passport, or birth certificate. We’ll enter your information into SEPTA’s online system, take a quick photo, and then SEPTA will mail your new card to you directly.

2-1-1 Southeastern Pennsylvania: Health and Human Services

211 SEPA is part of the national 211 Call Centers initiative that seeks to provide health and human services for everyday needs and those in crisis situations.

2-1-1 works with county governments and provider agencies to ensure important local program information is easily accessible.

Visit 211sepa.org for more information.

Mental Health Resources: Call 9-8-8

Chester County residents experiencing mental-health-related crisis or distress can dial 9-8-8 to reach the Suicide and Crisis Lifeline.?This system is designed to be a memorable and quick number that connects people in crisis to a trained mental health professional.

Chester County offers additional resources for those in crisis, including Chester County’s warm line, 1-866-846-2722, operated by Certified Peer Specialists, who are individuals in recovery with a lived experience of mental health challenges.

Chester County’s Teen Talk Line ensures seamless referral to Mobile Crisis for youth in need of immediate or higher-level support. The call line is 855-852-TEEN (8336), and the text line is 484-362-9515.

Visit the?Department of Human Services website for more information about the 988 system and other state and local mental health resources.

If you or someone you love is in crisis, please don’t give up hope, and please know that you do not need to walk this path alone. We are here and we will do whatever we can to help.

My staff and I are here to help make state government work better for you! For assistance with the above programs or any other state-related services, please email?repotten@pahouse.net, call 484-200-8259, contact us through my website, or visit my district office in Exton and let us know how we can help!

Sincerely,