HB 2079 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, establishing the Budget Impasse Reimbursement Program.

PRINTER'S NO.   2667

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



                      HOUSE BILL
                      No. 2079
                                             Session of
                                               2025

     INTRODUCED BY DOUGHERTY, SOLOMON, HANBIDGE, KHAN, SHUSTERMAN,
        SANCHEZ, McNEILL, GOUGHNOUR, SAPPEY, PROBST, PARKER, OTTEN,
        RIVERA, MALAGARI, HOHENSTEIN, INGLIS, GALLAGHER, CERRATO,
        ISAACSON, GUENST AND BELLMON, DECEMBER 3, 2025

     REFERRED TO COMMITTEE ON APPROPRIATIONS, DECEMBER 3, 2025


                                  AN ACT
 1   Amending the act of April 9, 1929 (P.L.343, No.176), entitled
 2      "An act relating to the finances of the State government;
 3      providing for cancer control, prevention and research, for
 4      ambulatory surgical center data collection, for the Joint
 5      Underwriting Association, for entertainment business
 6      financial management firms, for private dam financial
 7      assurance and for reinstatement of item vetoes; providing for
 8      the settlement, assessment, collection, and lien of taxes,
 9      bonus, and all other accounts due the Commonwealth, the
10      collection and recovery of fees and other money or property
11      due or belonging to the Commonwealth, or any agency thereof,
12      including escheated property and the proceeds of its sale,
13      the custody and disbursement or other disposition of funds
14      and securities belonging to or in the possession of the
15      Commonwealth, and the settlement of claims against the
16      Commonwealth, the resettlement of accounts and appeals to the
17      courts, refunds of moneys erroneously paid to the
18      Commonwealth, auditing the accounts of the Commonwealth and
19      all agencies thereof, of all public officers collecting
20      moneys payable to the Commonwealth, or any agency thereof,
21      and all receipts of appropriations from the Commonwealth,
22      authorizing the Commonwealth to issue tax anticipation notes
23      to defray current expenses, implementing the provisions of
24      section 7(a) of Article VIII of the Constitution of
25      Pennsylvania authorizing and restricting the incurring of
26      certain debt and imposing penalties; affecting every
27      department, board, commission, and officer of the State
28      government, every political subdivision of the State, and
29      certain officers of such subdivisions, every person,
30      association, and corporation required to pay, assess, or
31      collect taxes, or to make returns or reports under the laws
32      imposing taxes for State purposes, or to pay license fees or
 1      other moneys to the Commonwealth, or any agency thereof,
 2      every State depository and every debtor or creditor of the
 3      Commonwealth," establishing the Budget Impasse Reimbursement
 4      Program.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.   The act of April 9, 1929 (P.L.343, No.176), known
 8   as The Fiscal Code, is amended by adding an article to read:
 9                             ARTICLE XVI-C.1
10                   BUDGET IMPASSE REIMBURSEMENT PROGRAM
11   Section 1601-C.1.   Scope of article.
12      This article establishes the Budget Impasse Reimbursement
13   Program.
14   Section 1602-C.1.   Definitions.
15      The following words and phrases when used in this article
16   shall have the meanings given to them in this section unless the
17   context clearly indicates otherwise:
18      "Budget impasse."    The period between July 1, 2025, and the
19   effective date of the General Appropriation Act for the 2025-
20   2026 fiscal year.
21      "Eligible entity."   A school district, county, human services
22   provider, Pre-K provider, Head Start provider, nonprofit
23   organization or any entity that receives funding from the
24   Commonwealth, either directly or through a Commonwealth agency,
25   in accordance with the General Appropriation Act and received
26   funding in the 2024-2025 fiscal year. The term does not include
27   an entity that received funding from discretionary agency
28   programs or competitive agency programs in the 2024-2025 fiscal
29   year.
30      "Fund."   The Budget Stabilization Reserve Fund established
31   under section 1701-A.
32      "Impasse-generated interest."       Interest income accrued in the

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 1   Commonwealth's General Fund and the fund as a result of delayed
 2   expenditures or transfers during a budget impasse.
 3      "Office."    The Office of the Budget of the Commonwealth.
 4      "Program."    The Budget Impasse Reimbursement Program
 5   established under section 1603-C.1.
 6   Section 1603-C.1.    Establishment of program.
 7      (a)     Establishment.--The Budget Impasse Reimbursement Program
 8   is established within the office.
 9      (b)     Administration.--The office shall administer the program
10   to reimburse eligible entities for documented financing costs or
11   interest income lost by an eligible entity directly attributable
12   to a budget impasse.
13      (c)     Application.--The office shall develop and make
14   available an application for an eligible entity to apply for the
15   program.
16      (d)     Eligibility.--The office shall develop guidelines for
17   eligibility in accordance with this article.
18      (e)     Review.--The office shall review an application and, if
19   eligible, award funds to an eligible entity.
20      (f)     Guidelines.--The office shall develop and publish
21   guidelines to implement this article.
22   Section 1604-C.1.    Funding source.
23      The program shall be funded from impasse-generated interest.
24   If impasse-generated interest is insufficient to meet eligible
25   reimbursement obligations, the General Assembly shall
26   appropriate necessary funds from interest earnings of the fund.
27   Section 1605-C.1.    Reporting.
28      The office shall submit an annual report to the Governor, the
29   chairperson of the Appropriations Committee of the Senate and
30   the chairperson of the Appropriations Committee of the House of

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1   Representatives detailing all of the following:
2          (1)   The total amount of impasse-generated interest
3      identified and utilized.
4          (2)   The total amount appropriated and disbursed under
5      this article.
6          (3)   The number and types of entities reimbursed.
7          (4)   The methodology used to calculate eligible
8      reimbursements.
9      Section 2.   This act shall take effect immediately.




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