PA SENATE PASSES BILL TO WAIVE INTEREST ON SHORT-TERM BUDGET IMPASSE LOANS

The Pennsylvania Senate has passed a bill to waive interest on short-term budget impasse loans offered by state treasurer Stacy Garrity.  Under current law, the Pennsylvania Treasurer may provide investment loans during a budget impasse but must charge interest on those loans. Treasury’s Budget Bridge Loan program would provide up to $500 million in low-interest loans from the Liquid Asset Pool Investment Fund for county governments, domestic violence and rape crisis centers, Head Start agencies and approved providers under the Pre-K Counts program.  The bill that was passed would make sure those entities would not have to pay the interest on the loan.  The legislation specifies that a budgetary impasse includes periods beginning July 1, 2025, and July 1, 2026, and ending on the effective dates of the General Appropriations Acts for the 2025-26 and 2026-27 fiscal years.  It now heads to the PA House for further consideration.