HARRISBURG —Sen. Dan Laughlin (R-49) today praised final passage of the 2025-26 state budget totaling $50.1 billion, saying it reins in government spending, protects taxpayers and advances key priorities to strengthen Pennsylvania’s economy, support families and invest in education.
“This budget reflects the kind of fiscal discipline Pennsylvanians expect and deserve,” Laughlin said. “We cut nearly $1.4 billion from the governor’s proposed spending plan, clawed back billions in unused funds and delivered a balanced budget without a tax increase or touching our emergency reserves. That’s responsible governing.”
The 2025-26 budget makes significant progress toward aligning state spending with available revenues while advancing reforms to make Pennsylvania more competitive for job creators. It continues the phase-down of the Corporate Net Income Tax and preserves the increase to the Net Operating Loss deduction, two long-standing priorities that have helped attract new employers and encourage business expansion.
“As a result of these pro-growth tax reforms, Pennsylvania job creators will pay roughly $1.4 billion less this year than they would have under the old rate,” Laughlin said. “That’s real relief that will help drive investment and create new opportunities for our communities.”
The budget also includes critical permitting reforms to streamline the approval process and hold state agencies accountable for timely decisions. Permits that linger without action will now be deemed approved after a set period, cutting red tape and ending unnecessary delays that stall job growth.
In addition, the plan repeals Pennsylvania’s participation in the Regional Greenhouse Gas Initiative, or RGGI, eliminating what Laughlin called “a $1.2 billion electricity tax that would have crushed Pennsylvania families and employers.”
“Northwestern Pennsylvania still has a strong manufacturing base,” Laughlin said. “Reducing electricity costs isn’t just about helping homeowners, it’s about keeping our manufacturers competitive so they can grow, invest and create good-paying jobs right here in our region.”
Empowering Families and Supporting Students
The budget also delivers for Pennsylvania students and families by expanding educational opportunity and investing in classroom success.
It provides an additional $50 million for the Educational Improvement Tax Credit program (EITC), with funds targeted at families in economically disadvantaged schools, and boosts Basic Education Funding by $105 million and the Ready to Learn Block Grant by $562 million to support academic achievement across the commonwealth.
“No child’s future should be determined by their ZIP code,” Laughlin said. “This budget gives parents more choices and ensures every student has the opportunity to succeed in an environment that fits their needs.”
The plan also provides an increase of $40 million for special education, $28.5 million for early intervention services and maintains $100 million for school safety and mental health initiatives.
Supporting Seniors and Strengthening Human Services
Laughlin also highlighted important investments in programs that support seniors, working families and individuals with disabilities, without the unsustainable spending increases seen in the governor’s proposal.
Funding is included to serve an additional 180 seniors through the LIFE program and providing rate increases for home and community-based care workers. The budget also dedicates $25 million for childcare workforce recruitment and retention and $10 million to increase early intervention provider rates.
Additionally, the budget invests in critical health research and innovation. In the Department of Health, a new Neurodegenerative Disease Research Program provides $5 million in grants to qualifying institutions researching conditions such as Alzheimer’s disease, Parkinson’s disease and other neurodegenerative disorders.
“Sen. Laughlin led the fight to secure this new stream of funding, advocating for increased investment in neurodegenerative disease research so Pennsylvania institutions can continue to advance life-changing treatments and discoveries,” the release states.
“This budget makes smart, sustainable investments in our people, from students and working parents to seniors who deserve to age with dignity,” Laughlin said. “It’s a plan that respects taxpayers, supports growth and keeps Pennsylvania moving forward.”
CONTACT:
Chris Carroll
Phone: 814-453-2515