A Historic Win for Working Families in Pennsylvania
United Way of Pennsylvania and PA 211 are proud to celebrate a major victory for working families across our Commonwealth: the Working Pennsylvanians Tax Credit has officially been included in the 2025 Pennsylvania State Budget.
For years, United Way of Pennsylvania, the United Way network, and community partners have advocated for meaningful, targeted relief for ALICE (Asset-Limited, Income-Constrained, Employed) households — Pennsylvanians who work hard but still struggle to afford child care, housing, groceries, health care, and transportation. The inclusion of this refundable tax credit marks a transformational step for hundreds of thousands of families who keep our communities and economy strong.
This credit reflects the proven success of Earned Income Tax Credit programs in other states and ensures that working families — especially ALICE households — have more breathing room to handle rising costs and plan for the future. It also demonstrates a strong bipartisan commitment to strengthening Pennsylvania’s workforce and expanding economic mobility.
Key champions in the legislature led the way:
- Senator Judy Schwank (Senate District 11) and Senator Lynda Schlegel Culver (Senate District 27) served as the lead sponsors of the Working Pennsylvanians Tax Credit in the Senate.
- Representative Christina Sappey (House District 158) sponsored the Working Pennsylvanians Tax Credit legislation in the House.
Their leadership made this historic moment possible — and their words underscore why this matters so deeply for Pennsylvania families:
Representative Christina Sappey, House District 158
“All across Pennsylvania, working families are doing everything they can to make ends meet,” said Sappey, D-Chester. “Many are dual-income households earning modest wages, juggling rent or mortgage payments, child care, health care and everyday essentials. When those basic costs outpace paychecks, families struggle — and our entire economy feels the impact.
“This new tax credit will support working families, benefit our economy, and eligibility for the credit is capped. The goal is to keep these critical working families moving ahead and earning enough not to qualify. This program is highly successful in other states and helps grow the middle class.”
Senator Lynda Schlegel Culver, Senate District 27
“I am proud that this year’s budget includes the Working Pennsylvanians Tax Credit, something I have championed since my time in the House, which will provide real, tangible relief for more than 700,000 households across the Commonwealth.
This is about helping the people who make Pennsylvania strong — families who work hard every day to make ends meet, raise their children, and contribute to their communities.
This credit will give working families the breathing room they need to pay bills, keep reliable transportation, and invest in their futures. It is a fiscally responsible, bipartisan step that puts people first, and I want to thank my colleague Senator Judy Schwank for partnering with me on this effort.”
Senator Judy Schwank, Senate District 11
“This is a win for working families,” Schwank said. “We see how effective EITCs are in other states, and I know thousands of families in Berks County will feel the difference. This tax credit puts money back in the pockets of the people who need it most. Whether it’s groceries, child care, after-school programs or rent, this support gives working Pennsylvanians the flexibility and breathing room they need to thrive.”
At United Way of Pennsylvania and PA 211, we see firsthand the daily challenges ALICE families face — and we know the difference that even modest financial relief can make. Today’s budget decision is a meaningful investment in stability, dignity, and opportunity for the workers who make our communities stronger.
We are grateful to Senator Schwank, Senator Culver, Representative Sappey, and all the lawmakers and partners who helped make this possible. Together, we move one step closer to a Pennsylvania where every family can thrive.