PA House Democrats Pass Unbalanced, Reckless Spending Bill

Harrisburg, Pa., July 14, 2025 — Today, Pennsylvania House Democrats passed the General Appropriations Act (HB 1330), their version of a budget bill, which includes a $2.9 billion spending increase.

The bill would increase general fund spending to $50.6 billion—exacerbating Pennsylvania’s structural deficit, by spending $5.3 billion more than revenue. Lawmakers would need to drain state reserves to cover the cost of such reckless spending this year, followed by tax increases next year. Pennsylvania families could expect a $2,000 tax hike in 2026 if this overspending becomes law.

Nathan Benefield, Commonwealth Foundation’s Chief Policy Officer, issued the following statement in response:

House Democrats have had months to pass a fiscally responsible, bipartisan budget. Instead, after months of inaction, they are ramming through an unbalanced spending plan that does nothing to address the state’s financial problems or provide accountability to the countless failing systems being kept afloat year-after-year by state-funded bailouts.

Despite weeks of claiming he’s close to negotiating a bipartisan agreement, Governor Shapiro has once again proven unable to lead his own party, and unwilling to work across the aisle, amid the ongoing state budget impasse.

Nowhere in this budget proposal do we see overdue reforms in welfare, regulation, or education. HB 1330 does nothing to advance educational choice, unleash Pennsylvania’s energy sector, or attract businesses back to the commonwealth. Without addressing these issues, Pennsylvania families and business will be denied a prosperous future.

Pennsylvania families deserve far better than a special interest wish list disguised as a budget, put together in less than two hours. We urge the state Senate to disregard this blatant partisan move and instead work towards a budget that protects families from tax increases, provides regulatory relief, and delivers educational opportunity.

### 

The Commonwealth Foundation transforms free-market ideas into public policies, empowering all Pennsylvanians to thrive.