Pennsylvania Budget Holds Promises And Pitfalls for the Environment

Momentum Builds for Clean Water As Climate and Community Resilience Are Left Behind

The Chesapeake Bay Foundation (CBF) is relieved that the months-long impasse over Pennsylvania’s new budget has been resolved and includes funding for conservation, but is also disappointed that it came at the expense of conceding a climate program that would have reduced carbon emissions.

Governor Josh Shapiro signed the Commonwealth’s $50.1 billion General Fund budget for fiscal year 2025-2026 on Wednesday.

The budget was negotiated at the expense of Pennsylvania’s potential for clean air and community investments through the abrogation that ends the Commonwealth’s participation in the Regional Greenhouse Gas Initiative (RGGI).

The RGGI is a coordinated effort between several Northeastern states that sets a regional limit on carbon dioxide emissions from power plants. The emissions cap lowers over time, leading to cleaner air and less pollution to waterways while reducing emissions that contribute to climate change.

In other words, RGGI would have reduced pollution in Pennsylvania and brought in billions of dollars to invest in local communities.

More favorably for Pennsylvania’s environment, the new budget includes an over 5.5 percent increase in funding for the Department of Environmental Protection, and a reinvestment of $10 million in the Agricultural Innovation Grant.

Also, the Clean Streams Fund, as part of the Pennsylvania Tax Code, continues to be allocated annually at $50 million, which includes over $35 million to the Agriculture Conservation Assistance Program (ACAP). This sustained allocation to ACAP will put more clean water projects on farms that reduce pollution and improve the health of local rivers and streams.

Julia Krall, CBF Pennsylvania Executive Director, said:

“Negotiating away an important program like the Regional Greenhouse Gas Initiative through the budget sets a bad precedent. Now this action threatens the health of Pennsylvania’s rivers, streams, and the Chesapeake Bay.

“Ending Pennsylvania’s participation in the RGGI is a move in the wrong direction. Greenhouse gases continue to pose significant threats to our personal and economic health, the quality of our local rivers and streams, and to climate stability. Carbon dioxide emissions know no boundaries.

“With our changing climate, increasingly common heavy rains, flooding, and overheated runoff will intensify pollution, erode productive farm soils, and destroy habitats vital to wildlife in Pennsylvania, like the eastern hellbender and native brook trout.”