2025-26 PA Budget Impasse – Using Data in 2026 Advocacy Efforts

Pennsylvania’s 2025-26 prolonged budget stalement occurrng at the same time as a federal government shutdown had devastating impacts on Pennsylvania lives and the nonprofit sector that serves as a backbone of community care across all 67 counties. This “double-whammy” impasse jeopardized essential services, and not just temporarily. Some organizations closed forever, and workers left for more stable employment, meaning that other organizations continue to struggle months after funding started flowing again.

PANO, in collaboration with the United Way of Pennsylvania a dozen other mission-aligned organizations, collected data throughout the impasse that we wlll continue to use to advocate for on-time budgets every year. Key points from data collected from 228 organizations included:

•  244,000  Pennsylvanians experienced service reductions or disruptions.
• Organizatons reported accessing a collective $128.5 Million in contingency funds, ranging from lines of credit to credit card debt to negotiating with vendors for delayed payments.
• 84% of surveyed nonprofits exhausted contingency funds, facing a cumulative budget impact of $588.8 million. 
• Participating nonprofits reported interest expenses from borrowing money to stay operational of nearly $2.2 Million, pulling dollars away from community services. 
• Nonprofits had to cut hours for staff or lay them off, and staff burnout led to some leaving their positions permanently. The number of impacted employees have nearly tripled between August and November – from 599 FTEs to $1,866 FTEs.
• Days days closed across nonprofit providers have surged by 695% between August and November.

This data is a critical snapshot of a couple hundred organizations. Multiply the impact reported here by the thousands of organizations serving millions of Pennsylvanians to better grasp this unnecessary heartbreak.

See Critical Services Coalition Letter dated 2/2/2026 – sent to members of Pennsylvania’s General Assembly.