The Pennsylvania Budget Impasse & Workforce Development
Pennsylvania is in a budget impasse. The Pennsylvania Workforce Development Association will provide timely updates and advocacy for our partners.
Here’s what we know now:
Pennsylvania’s fiscal year ended on June 30.
Because of the uncertainty in this process, the Pennsylvania Workforce Development Association is committed to fighting for its partners to make sure their voices are heard as the impasse continues.
Frequently Asked Questions
Almost all of our workforce funds regardless of their source are appropriated by the General Assembly, and therefore, are impacted by the impasse either directly or indirectly. Because our spending authority is appropriated in the state budget for our Workforce Innovation and Opportunity Act (WIOA) local formula funding, rapid response additional assistance and statewide activities; Temporary Assistance for Needy Families (TANF); Industry Partnership (IP); PAsmart; and other federal discretionary grant funding, a budget impasse will impact payments for any expenditures that occur July 1, 2025, and after. Additionally, all funding subject to the waiver process is also indirectly impacted as waivers are often not considered until after the budget passes. This includes older TANF, IP, and PAsmart funding. (Source: Shapiro Administration)
Expenses that were incurred through June 30, 2025, can be drawn and paid. There will be a limited time (potentially 60 days) for which grantees will be able to continue to draw down funds for expenditures that occurred last budget period.
We do not anticipate any budget impasse impacts to Reemployment, Nursing Apprenticeship, Trade Adjustment Assistance, Wagner-Peyser, RESEA, Jobs for Veterans State Grants, Foreign Labor Certification or Work Opportunity Tax Credit funding.(Source: Shapiro Administration)
Expenses incurred July 1, 2025, or after from appropriated funds (those listed above) cannot be made until a budget is passed. (Source: Shapiro Administration)
PA CareerLinks® are paid using federal funds. We have not received direction on how the administration and the Treasury will view the use of these funds and spending authority. The Pennsylvania Workforce Development Association believes the commonwealth should expend federal funds during an impasse and we will advocate for the release of these funds.
Please reach out to the Pennsylvania Workforce Development Association. We are working directly with our partners, the administration, the legislature and the Treasury to get your questions answered in a timely manner.
We unfortunately do not know when the budget impasse will end. We are available to help you plan for a protracted impasse and to advocate for your funding with the administration, treasury, and legislature.