HARRISBURG — Pennsylvania's prospects for avoiding deeper state budget cuts and more layoffs improved Wednesday, thanks to a key U.S. Senate vote on $26 billion in recession-related aid to the states.

After months of wrangling, the bill cleared a hurdle in the Senate that virtually guarantees its later passage in the chamber. The legislation would extend aid included in last year's federal stimulus law to states and public school districts to maintain programs amid anemic tax collections during the recession.

"This is a positive and long overdue first step to prevent harmful budget cuts and layoffs," Sen. Bob Casey, D-Pa., said in a statement.

Final Senate approval, which isn't expected before today, and House passage are still necessary.

The House, under pressure to help cash-strapped school districts before fall classes begin, was called back early from its summer break for what is expected to be a final vote next week.