Bipartisan Compromise Shapes Pennsylvania’s 2025 Budget Without Raising Taxes

A Budget Built on Bipartisan Compromise

Pennsylvania lawmakers have approved a bipartisan state budget that Representative Kristin Marcell described as a responsible agreement balancing fiscal restraint with targeted investments. The budget, she noted, achieves this without raising taxes or dipping into the state’s Rainy Day Fund.

“This year’s budget comes from bipartisan compromise and delivers responsible government without raising taxes or tapping into the Rainy Day Fund,” Marcell said.

The agreement reflects a growing emphasis in Harrisburg on disciplined spending and prudent financial management, as lawmakers sought to address economic challenges while protecting taxpayers.

Fiscal Responsibility and Key Investments

Marcell emphasized that the budget honors a core commitment to Pennsylvania families—controlling spending, preventing tax increases, and focusing on key investments where they matter most.

In a political climate often divided over fiscal priorities, the budget’s passage represents a significant moment of bipartisan cooperation. It reflects a shared understanding between parties that sustainable spending is essential to maintaining economic stability and public trust.

Energy Reform and Economic Growth

A key provision of the agreement is the repeal of Pennsylvania’s participation in the Regional Greenhouse Gas Initiative (RGGI). Marcell said this change will “give our energy industry the jump start it needs to grow to meet the increasing energy demands of Pennsylvanians and our country as a whole.”

Pennsylvania House Republican Leader Jesse Topper echoed that sentiment, noting that leaving RGGI and making progress on permitting reform positions the state to “take advantage of the economic opportunity under our feet by jumpstarting our energy industry, driving investment from tech companies, and removing government as an impediment to growth.”

Topper called the outcome “significant progress for the people of Pennsylvania and this Commonwealth’s future well-being,” crediting the budget for advancing economic growth and government accountability.

Record Education Funding and Student Opportunity

Marcell highlighted record investments in basic education, increased funding for Career and Technical Education (CTE), and new programs to help students in underperforming schools access better educational options.

“This budget continues my strong commitment to making education stronger in Pennsylvania,” she said.

Topper added that the budget enhances supplemental scholarships for students attending economically disadvantaged schools and requires structured literacy in public schools—ensuring every student gains a strong foundation in essential skills.

“The enhancement to the supplemental scholarship for students attending economically disadvantaged schools is another step forward in allowing more students to achieve a quality education regardless of their ZIP code,” Topper said. “This budget also prioritizes essential learning skills, such as reading, by requiring structured literacy in Pennsylvania’s public schools.”

Strengthening Benefit Integrity and Taxpayer Protections

The budget also includes reforms to Medicaid that protect taxpayers and preserve care for those who truly need it. Marcell said these efforts will save hundreds of millions of dollars through better eligibility reviews while ensuring long-term care for the most vulnerable.

Topper praised these reforms as “real benefit integrity,” ensuring taxpayer benefits are properly allocated and creating a system that is secure and sustainable. He also highlighted a new structured tax credit program that returns taxpayer dollars “back to working Pennsylvanians,” guaranteeing reinvestment into local communities.

Looking Toward a Stable and Prosperous Future

Both Marcell and Topper emphasized that this budget is not only about the present fiscal year but also about securing Pennsylvania’s long-term success.

“Pennsylvanians expect us to govern wisely,” Marcell said. “This budget will meet our obligations without risking our long-term financial stability.”

Topper agreed, calling it a “transformative policy that is really about the future of this Commonwealth.”