HB 2025 — 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
 1   Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
 2      act relating to the public school system, including certain
 3      provisions applicable as well to private and parochial
 4      schools; amending, revising, consolidating and changing the
 5      laws relating thereto," in reimbursements by Commonwealth and
 6      between school districts, providing for reimbursements for
 7      borrowing costs during budget impasse; and establishing the
 8      School District Impasse Recovery Fund.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11      Section 1.    The act of March 10, 1949 (P.L.30, No.14), known
12   as the Public School Code of 1949, is amended by adding a
13   section to read:
14      Section 2599.9.     Reimbursements for Borrowing Costs During
15   Budget Impasse.--(a)    The following shall apply to the School
16   District Impasse Recovery Fund:
17      (1)   The School District Impasse Recovery Fund is
18   established.
19      (2)   Money in the fund is appropriated on a continuing basis
20   to the department for the purpose of providing reimbursements in
 1   accordance with this section.
 2      (3)    The fund shall consist of all money appropriated for use
 3   under this section and any interest that accrues on the money.
 4      (4)    Money in the fund:
 5      (i)    May only be used for the reimbursements authorized under
 6   this section.
 7      (ii)    May not be transferred or diverted to any other purpose
 8   by administrative action.
 9      (iii)   Shall be used to reimburse school entities for
10   eligible expenses incurred during an impasse period in
11   accordance with this section.
12      (b)    The department shall reimburse school entities for all
13   eligible expenses incurred during an impasse period in the
14   fiscal year following the fiscal year in which the impasse
15   period occurred.
16      (c)    The total amount of reimbursement under this section for
17   a school entity may not exceed the documented eligible expenses
18   submitted by the school entity.
19      (d)    The department shall develop an application to enable
20   school entities to apply for reimbursement under this section.
21   The application must include:
22      (1)    Itemized documentation of each claimed eligible expense.
23      (2)    Proof of payment or financial obligation.
24      (3)    Certification by the school entity's business
25   administrator.
26      (4)    Other information deemed necessary by the department.
27      (e)    The department shall determine the method or manner in
28   which applications under this section are submitted to the
29   department.
30      (f)    Applications for reimbursement under this section must

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 1   be submitted to the department no later than forty-five (45)
 2   days following the end of the impasse period.
 3      (g)   Not later than thirty (30) days following receipt of an
 4   application submitted in accordance with this section, the
 5   department shall review the application and, as appropriate,
 6   approve the reimbursement.
 7      (h)   Not later than May 31 of the year following an impasse
 8   period, the department shall provide the following with
 9   aggregated data on the total eligible expenses incurred during
10   the impasse period:
11      (1)   The Governor.
12      (2)   The chairperson and minority chairperson of the
13   Appropriations Committee of the Senate.
14      (3)   The chairperson and minority chairperson of the
15   Appropriations Committee of the House of Representatives.
16      (4)   The chairperson and minority chairperson of the
17   Education Committee of the Senate.
18      (5)   The chairperson and minority chairperson of the
19   Education Committee of the House of Representatives.
20      (i)   The General Assembly shall appropriate money to the fund
21   sufficient to reimburse school entities for all eligible
22   expenses in the General Appropriation Act enacted for the fiscal
23   year following the end of an impasse period.
24      (j)   As used in this section, the following words and phrases
25   shall have the meanings given to them in this subsection unless
26   the context clearly indicates otherwise:
27      "Department" shall mean the Department of Education of the
28   Commonwealth.
29      "Eligible expenses" shall include:
30      (1)   Interest on short-term borrowing.

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 1      (2)   Fees for lines of credit.
 2      (3)   Penalties for deferred payments to vendors or service
 3   providers.
 4      (4)   Other costs associated with emergency financial measures
 5   taken due to an impasse period.
 6      "Fund" shall mean the School District Impasse Recovery Fund
 7   established in subsection (a)(1).
 8      "Impasse period" shall mean a period after the beginning of a
 9   new fiscal year during which the General Appropriation Act for
10   that fiscal year has not been enacted.
11      "School entity" shall mean a school district, intermediate
12   unit or area career and technical school.
13      Section 2.   This act shall take effect immediately.




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