Sappey Legislation Signed Into Law, Budget Highlights and More

Rep. Christina Sappey November 14, 2025 | 11:28 AM

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General Assembly Passes 2025-2026 State Budget

After a long impasse, we have a state budget. This balanced budget has no tax increases and no reductions to the Rainy Day fund. Many have heard me say over the last few years how crucial it is for the state to invest in core functions of government and our people. I believe this budget has accomplished that, and for this reason I voted in favor of it.

My father always told me “if you walk out with everything you want, there was no compromise. True negotiation requires compromise.” The compromise for me in this budget was our state leaving RGGI. This was really the only thing the Senate Republican Caucus wanted, so we compromised here, but I’m disappointed that as one of the top energy producers in the country our state continually fails to have a climate action plan that dovetails with our economic goals. I firmly believe we can accomplish both of these things and will continue to push for this. Apologies for this “sappeyism,” but it’s not OR, it’s AND. We can do both.

Budget Highlights

Public Education

Basic education funding (K-12) received a 1.3% increase ($105 million) with special education funding receiving a 2.7% increase ($40 million).
The second installment of our state’s constitutionally mandated obligation to provide students in every school district with the resources needed to succeed was fully funded.
A 6.7% increase ($28.5 million) for Early Intervention programs and Pre-K Counts will receive a 2.36% increase per student reimbursement rate.
$100 million for school mental health services and school safety.
A long overdue increase ($5 million) for the Public Library Subsidy.

Higher Education

PHEAA grants maintained at maximum of $5,750
$30 million level funded Student Teacher stipend
Level funding for PASSHE and community colleges
Level funding for Penn State, Pitt, Temple Universities -- pending Senate approval
5% increase for Lincoln University -- pending Senate approval

Workforce Development

$25 million for Child Care Worker Retention and Recruitment
$21 million for Direct Care Workers who provide support services to care-dependent individuals

Human Services

A 6.1% increase ($154.4 million) for the Community Waiver Program for intellectually disabled.
A 3.7% increase ($10.7 million) for Local Area Agencies on Aging.
8% increase ($747 million) for Medicaid Managed Care programs, including Direct Care Workers.
A 2.1% increase ($470,000) for the Domestic Violence Program & a 2.1% increase ($250,000) for the Rape Crisis Program.
$40 million for Farmers Market Coupons, the State Food Purchase Program and the PA Agricultural Surplus System to address food insecurity and support family farms.

Community and Economic Development

$8.856 million for the new BusinessPA program
$20 million for Main Street Matters
$20 million for Historically Disadvantaged Businesses
5% increase ($265,000) for the Center for Local Government Services
$2.5 million for America250PA

Business

A phase-down in the Corporate Net Income tax (CNI) from 7.99% to 7.49% in 2026.
To bring the state into alignment with federal law, the cap on net operating losses is being increased each year until it reaches 80% in 2029. The cap for 2026 will be 50% of taxable income.

Transportation & Infrastructure

3.2% increase ($20 million) for Highway Safety and Improvement
3.6% increase ($41.2 million) for Highway Maintenance

Agriculture

$10 million continued investment for Agricultural Innovation program
$11 million for Animal Health and Diagnostic Commission
$2.1 million for Ag Research

Sappey Legislation Signed into Law

This week my legislation creating the Working Pennsylvanians Tax Credit program was signed into law as part of the state budget. Under this new program, taxpayers who are eligible for the federal credit will receive a state earned income tax credit equal to 10% of their federal credit.

Families with one qualifying dependent would receive $433, two dependents $715, three dependents $805. The credit builds upon the special tax forgiveness already provided in state law and is refundable so that taxpayers will receive the full amount even without tax liability.

A state earned income tax credit helps keep low-to-moderate wage workers in the workforce and out of government social safety net programs. These families often teeter on the verge of not being able to pay the rent on time or other bills such as weekly childcare, their financial stability is rocked by unexpected expenses like a car repair or medical bill.

State earned income tax credits also encourage low-wage workers to get additional education or training to boost their employability and earning power, and help workers to keep more of their wages. A state EITC matches federal guidelines and is capped based on income, with the goal being to provide some assistance as workers advance in their careers and ultimately earn out of eligibility.

Supporting the hard-working employees of large and small businesses across the commonwealth is a smart investment. We should value those who are working and striving for financial independence and a middle-class life.

Thirty-one other states have earned income tax credit programs and I am proud that my legislation has enabled Pennsylvania to now join them.

Annual Veterans Breakfast

The annual Veterans Breakfast and Recognition Ceremony is my favorite event of the year. It means so much to me to have an opportunity to thank veterans for their service and sacrifice.

This year’s keynote speaker, Brigadier General Frank J. McGovern, Assistant Adjutant General for the PA Army National Guard, spoke about how much veterans’ service to our country matters and that Veterans Day is about recognizing their choice to place country above self.

I’m grateful to the Kennett Square VFW Post 5467 and Commander Joe Zenisek, for hosting us again this year. Thanks also to Boy Scout Troop 53 for presenting the colors, the Kennett High School Choir for their beautiful rendition of the national anthem and God Bless America, Father Mark Tobin of Saint Patrick Parish and Rev. Annalie Korengel of Unionville Presbyterian Church for delivering the Invocation and Benediction.

I am honored to represent veterans of the 158th Legislative District. If you are a veteran, or know one in need of assistance, don’t hesitate to contact my office at 484-200-8264.

KACS Food Drive Extended

The recent interruption in SNAP payments has increased need and impacted our local food banks. My office has extended its food collection drive for KACS through November 21st. Please see graphic for additional information.

Thank you for subscribing to my E-newsletter. If you need assistance with any state-related issue, please reach out to my office at 484-200-8264, or visit us at 698 Unionville Road, at the intersection of routes 82 and 926. Follow me on Facebook and Instagram.

All the best,