Pennsylvania Treasurer Stacy Garrity has unilaterally offered counties and early education programs $500 million in low-interest loans until a final state budget deal is complete, The Philadelphia Inquirer reported.
According to their coverage, Garrity “sidestepped” the General Assembly and Governor Josh Shapiro, a move that was “unprecedented” and will allow the state Treasury to offer the loans to county human service departments and early education Head Start programs at a 4.5% interest rate.
Expected state payments have been on hold since the beginning of the fiscal year on July 1. No end to the budget impasse is in sight, The Inquirer said. A spokesperson for Shapiro said that the solution is for Senate Republicans to finalize a budget deal with House Democrats.
Pennsylvania is the only state besides Michigan that has not yet passed its budget. Garrity kicked off her “Help Is on the Way” introductory campaign tour this week following an official endorsement from the Pennsylvania Republican Party to challenge Shapiro in the 2026 gubernatorial election.
“I know what it means to serve,” Garrity said in her acceptance speech. “I know what it means to solve the tough problems impacting the lives of Pennsylvania families. So my message to families all across our great commonwealth: Help is on the way.”
On Tuesday, Garrity said Shapiro is more focused on his national profile, according to WESA.
“For Josh Shapiro, Pennsylvania is a stepping stone. For us, Pennsylvania is our home,” she said. “And that’s why I’m here tonight to tell you what I’ve been saying since I announced my campaign: Help. Is on. The way.”
She also suggested that Shapiro could do more to encourage natural gas production in the state.
“Pennsylvania’s energy industry is being strangled by overregulation [and] a governor that wants to keep it that way,” she said. “When I am governor, I will unleash Pennsylvania energy responsibly.”
In related news, Shapiro criticized Valley Forge-based power grid manager PJM Interconnection (which supplies Pennsylvania and 12 other states) at a conference of energy industry leaders and regulators in Philadelphia.
Accoding to MarylandMatters.org, Shapiro threatened to leave the consortium if states aren’t given a bigger role in PJM’s governance.
“We need to be thinking about consumers and their costs, something that PJM, I think, doesn’t really spend a whole lot of time focused on,” he said. “We need to move more quickly on these energy-producing projects. We’ve got to hold down costs. If PJM cannot do that, then Pennsylvania will look to go it alone.”
In early January, Shapiro’s administration filed a lawsuit with the Federal Energy Regulatory Commission against PJM. Weeks later, he announced that his administration reached an agreement on a plan to resolve the suit and save consumers over $21 billion over the next two years, including an estimated $4.2 billion for Pennsylvania ratepayers.
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