The Commonwealth’s budget is three months late.
With lawmakers in Harrisburg at an impasse and a state budget that is three months overdue, State Treasurer Garrity has started a $1 billion temporary loan program to bring relief to organizations providing critical services to Pennsylvanians. Garrity, a Republican, recently announced her campaign for governor against incumbent Governor Josh Shapiro.
Garrity announced that the Pennsylvania Treasury Department’s Budget Bridge Loan program will now accept applications from Pre-K Counts programs, and organizations offering rape prevention and response services, as well as domestic violence prevention and support services for survivors.
“The response to Treasury’s short-term funding solution has been positive, and I’m pleased to be able to expand this program to include organizations that provide critical services to more children and also to survivors of rape and assault. I’m using the tools available as state treasurer to make sure critical services can continue without interruption. These loans are a lifeline,” Garrity said.
Garrity also announced the availability of $500 million in Budget Bridge Loans for Head Start providers and county governments to support vital human services in the absence of a state budget.
The Treasury, overseen by Garrity, is reaching out to Head Start programs and county governments directly to provide the necessary funds.
Treasury officials said funds will be delivered within two business days of application approval to participate in the loan program.
The Budget Bridge Loan program must be used for immediate operating expenses.
Organizations that enter into a loan agreement will be required to pay back the initial Treasury investment plus a 4.5% annual interest rate within 15 days of the state funds being released following the completion of a state budget that is signed into law by Governor Shapiro.
