HARRISBURG, Pa. (AP) — Pennsylvania’s counties, school districts and social service agencies are warning of mounting layoffs, borrowing costs and damage to the state’s safety net as the politically divided state government enters its fourth month of a budget stalemate .

The stalemate entangling Democratic Gov. Josh Shapiro, the Democratic-controlled House and the Republican-controlled Senate has stalled billions of dollars from going to schools and social services, and it has no certain end in sight as the federal government goes into a shutdown .

The finger-pointing in Pennsylvania’s statehouse has fallen along partisan lines. Now it is a campaign trail topic as Republican state Treasurer Stacy Garrity prepares to challenge Shapiro’s bid for a second term in 2026’s election.

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