Treasurer Stacy Garrity Forgives Budget Bridge Loan Interest
Treasury’s Budget Bridge Loan Program helped 62 organizations maintain operations during budget impasse
Harrisburg, PA - Pennsylvania Treasurer Stacy Garrity today announced that Treasury is waiving interest charges for the 62 organizations who received funding through Treasury’s Budget Bridge Loan Program. Treasury disbursed more than $42.2 million to these entities to help maintain immediate operating expenses during the months-long budget impasse. This includes 13 Head Start local agencies, 46 Pre-K Counts providers, two rape and domestic violence crisis centers and one county government.
“The Budget Bridge Loan emerged as a lifeline for so many organizations dedicated to serving our most vulnerable Pennsylvanians,” Treasurer Garrity said. “These loans represent the funds these organizations would have received had a state budget passed on time. The ability to waive interest is monumental, ensuring that every dollar can be channeled directly into the essential services that impact the lives of our friends and neighbors who depend on the vital support these organizations provide.”
Pennsylvania State Treasurer Stacy Garrity
Treasurer Garrity launched the Budget Bridge Loan Program in September making funding available for Head Start providers, Pre-K Counts programs, county governments and rape and domestic crisis centers.
Loan agreements required loans, including principal and interest, to be paid back to Treasury within ten business days of the receipt of state funds following the enactment of the Fiscal Year 2025-26 state budget. Because of legislative action she advocated for that was included in the final budget, Treasurer Garrity has the authority to waive the 4.5 percent interest for program participants.
“Without the immense patience and goodwill of our vendors, the support of our community bank, the dedication of our brilliant staff, and the access to the state's bridge loan program, YWCA would have found it almost impossible to traverse the financial landscape of the past few months. Once established, the bridge loan program was efficient and supported the critical need it intended to – bridging the gap between the limitations a budget impasse creates for many of Pennsylvania's vulnerable non-profits and an approved budget that fulfills executed contracts for critical programs.”
Kelly Grosser, Chief Executive Officer YWCA Tri-County Area
“Overall, the Budget Bridge Loan served as a powerful strategic boost that kept FCCA moving forward during a difficult transitional period. It positioned us to maintain our FCCA Pre-K Counts program as long-term funding realigned. Most importantly, it protected the stability of our services and ensured that children and families continued receiving the consistent, high-quality support they depend on every day.”
Jackie L. Roberson Jr., Executive Director Family Children & Community Association
Treasurer Garrity also announced that within 24 hours of receiving payment requests from the Budget Office, Treasury was able to process approximately 65,000 payments totaling about $1.5 billion.
“Thanks to the rigorous pre-audit process that we have in place, we quickly processed over 65,000 payments, ensuring that counties, schools and other organizations finally received their long-awaited state funds.”
Pennsylvania State Treasurer Stacy Garrity
More state budget details can be found on OpenBookPA at patreasury.gov/OpenBookPA, and Budget Bridge Loan data can be found at patreasury.gov/budget-bridge-loan.
