Weekly Update: Key Developments in PA State Budget Talks

Highlights from the Past Week in the PA Legislature

The past week has been eventful in the Pennsylvania state legislature, marked by significant budget discussions and legislative actions. The House and Senate reconvened to address pressing issues, with particular focus on the state budget. Notably, the House met briefly in a non-voting session on July 2, 2025, and will reconvene on July 7, 2025. Meanwhile, the Senate stands in recess, awaiting further actions.

In the midst of these sessions, legislators have been actively engaging in debates and discussions to shape the future of Pennsylvania's fiscal policies. The budget talks are crucial as they determine the allocation of resources across various sectors, impacting education, public safety, infrastructure, and more. This week, we saw a blend of bipartisan efforts and individual legislative initiatives aimed at addressing the state's most pressing needs.

Major Legislative Actions and Decisions

Several key legislative actions were taken this week, reflecting the dynamic nature of the budget talks. One notable action was the House Rules Committee's consideration of multiple bills, including HB 80, which authorizes Pennsylvania to join the Audiology and Speech-Language Pathology Interstate Compact. This bill, along with others, highlights the legislature's commitment to improving healthcare services and professional standards in the state.

Additionally, HB 1505, which amends the Public School Code to include intermediate units in the definition of "eligible provider" for early learning programs, was reported as committed. This move is expected to enhance the quality and accessibility of early childhood education across Pennsylvania.

On the fiscal front, HB 1575, which amends the Tax Reform Code to provide for factory or mill building economic revitalization, was also reported as committed. This bill aims to spur economic growth by offering tax credits to municipalities for revitalizing historic buildings, thereby attracting new businesses and creating jobs.

📰 News & Updates

SEPTA Board Approves Major Service Cuts

SEPTA’s board has passed a budget that includes a 45% reduction in service, elimination of 50 bus routes, closure of several regional rail lines, and a fare hike of 21.5%—effective August 24, 2025. The move reflects a $213 million funding shortfall and comes as state legislators weigh additional transit funding.
🔗 Read more

Pittsburgh Regional Transit OKs Budget With Severe Cuts

Facing a June 30 deadline or risk losing federal grants, Pittsburgh Regional Transit (PRT) reluctantly approved a budget with 35% service cuts, elimination of 41 bus routes, a fare increase, and layoffs—while urging state lawmakers for supplemental funding to avert the measures. 
🔗 Read more

Amazon Data Centers to Cost PA Millions in Tax Revenue

Under state law incentives, Amazon will receive sales tax exemptions for new data center equipment—potentially costing Pennsylvania millions in foregone revenue. The deal also includes a $10 million workforce training allocation, raising questions about the long-term impact on the state’s power grid and services. 
🔗 Read more

Budget Deadline Missed Again in Harrisburg

Governor Shapiro’s $51.5 billion budget proposal missed the June 30 statutory deadline for the fourth consecutive year. The delay, a recurring issue, has temporarily halted funding for public colleges, education programs, and early childhood services—highlighting persistent negotiation challenges with the legislature. 
🔗 Read more

Trump Signs "One Big Beautiful Bill"—Massive Medicaid & SNAP Cuts

On July 4, President Trump signed the “One Big Beautiful Bill,” an omnibus tax and spending package. While it provides tax relief and increased funding for ICE and defense, it also includes over $1 trillion in Medicaid cuts, stringent work requirements, and potential reductions of up to $800 million in Pennsylvania SNAP funding—raising concerns for state hospitals and rural communities.
🔗 Read Trump signing bill & reaction
🔗 Read impact on rural hospitals & Medicaid
🔗 Read Pennsylvania SNAP funding analysis

📰 Press Releases: Week of July 1, 2025

🗞️ Sen. Jay Costa Condemns Passage of Federal Cuts to Medicaid and SNAP

Following the narrow passage of President Trump’s domestic policy bill, Senate Democratic Leader Jay Costa issued a scathing statement calling the legislation “cowardice and destruction rendered with glee.” The bill is projected to strip Medicaid from 300,000 Pennsylvanians and SNAP from 143,000. Costa warned that Pennsylvania lacks the capacity to backfill lost funds, potentially triggering hospital closures and food insecurity.
🔗 Read the full release

🏥 PA Hospitals Warn of Service Cuts After Deep Medicaid Reductions

The Hospital and Healthsystem Association of Pennsylvania (HAP) called the recent federal budget bill “devastating,” warning that hospitals—many already operating at a loss—could be forced to cut services or shut down. HAP praised members of Pennsylvania’s delegation who voted against the measure and urged immediate policy support to stabilize the healthcare system.
🔗 Read more at haponline.org

🏡 Sen. Nick Miller Applauds Bipartisan Bill to Lower Mortgage Costs

Governor Shapiro signed HB 1103 into law, allowing non-bank mortgage lenders to offer discount points and reduce interest rates for borrowers. Sen. Nick Miller, co-prime sponsor of the Senate version, called it a bipartisan step toward making homeownership more accessible and affordable for Pennsylvanians.
🔗 Read more

🏠 Rep. Twardzik Celebrates Mortgage Relief Bill Becoming Law

Rep. Tim Twardzik hailed HB 1103 as a “commonsense, bipartisan win” for working families. The bill modernizes lending rules and allows borrowers to pay upfront points to reduce interest rates on residential loans—helping homeowners access equity and manage monthly costs.
🔗 Read more at RepTimTwardzik.com

U.S. Sen. McCormick Praises Senate Passage of GOP Tax & Border Security Bill

Sen. Dave McCormick voiced strong support for the “One Big Beautiful Bill Act,” which includes permanent tax cuts, a Child Tax Credit increase, and tax exemptions for tips and overtime. McCormick said the bill delivers on key promises to lower costs, secure the border, and strengthen the economy.
🔗 Read more

👩‍⚕️ Rep. Burns’ Bill Clears Path for More Health Care Workers in PA

Starting July 7, Pennsylvania will join three multistate health care compacts, expanding access to doctors, nurses, and therapists. Rep. Frank Burns’ bill, HB 2200, enabled this shift by meeting fingerprinting requirements. Burns called it “the final piece of the puzzle” in addressing workforce shortages.
🔗 Read more

🧱 Bipartisan Bill from Rep. Davis Targets Blight and Revitalizes Neighborhoods

The House passed HB 1574, sponsored by Rep. Tina Davis and co-sponsored by Rep. Joe Hogan, to create a revolving loan program for county redevelopment authorities. Modeled after a successful Bucks County initiative, the bill would fund the rehabilitation of blighted properties and spur economic revitalization.
🔗 Read more

✍️ Governor Shapiro Signs 20 Bipartisan Bills Amid Ongoing Budget Talks

Governor Shapiro signed 20 bills into law, including HB 1103 (mortgage relief), HB 640 (infrastructure), and SB 255 (judiciary operations), while emphasizing continued work toward finalizing the FY 2025–26 budget.
🔗 Read more

☀️ Advocates Warn PA Could Lose $156M in Solar Funding Without Legislative Action

Solar United Neighbors Action is urging legislators to release $156M in Solar For All funding before a September 1 deadline. The program would expand access to rooftop solar, reduce energy bills by 20%, and create thousands of jobs. Advocates stress the need to preserve net metering and avoid missing out on economic and environmental gains.
🔗 Read more at solarunitedneighbors.org/action

🏛️ Senate GOP Leadership Reaffirms Focus on Fiscal Discipline Amid Budget Talks

Senate Republican leaders Kim Ward, Joe Pittman, and Scott Martin issued a joint statement highlighting the state’s structural deficit and the need to align spending with revenues. They committed to working toward a final budget that “respects taxpayers while allowing Pennsylvania to grow.”
🔗 Read more

Insights from Key Press Conferences

This week also saw significant press conferences that shed light on the ongoing budget discussions and other pivotal issues. Gov. Josh Shapiro held a press conference at Rhoads Industries in Philadelphia to announce a major investment in the state's manufacturing sector. Joined by Rep. Jordan Harris and other key stakeholders, Gov. Shapiro highlighted a $100 million investment in Rhoads Industries, aimed at expanding shipbuilding and creating over 450 new jobs.

Gov. Shapiro emphasized the importance of this investment for both the local economy and national security, noting that it will enhance the state's defense capabilities. The governor also announced an additional $4 million investment from the state to support Rhoads Industries' new production facility, which will double the capacity for their submarine program.

These investments underscore the state's commitment to fostering economic growth, creating job opportunities, and enhancing infrastructure. The press conference also highlighted the collaboration between the public and private sectors in driving Pennsylvania's economic development forward.

Impact of Budget Decisions on Education

Education remains a critical focus in the ongoing budget talks, with several legislative actions aimed at improving the state's educational landscape. HB 1505, which expands the definition of "eligible provider" for early learning programs, is expected to have a significant impact on early childhood education. By including intermediate units, the state aims to provide more comprehensive and accessible educational services to young children.

Moreover, the relaunch of the Pennsylvania Youth and Public Safety Caucus, co-chaired by Reps. Carol Kazeem, Heather Boyd, and Andre Carroll, emphasizes the legislature's commitment to addressing youth-related issues. The caucus aims to tackle juvenile justice reform, mental health, education, workforce development, and violence prevention. These efforts are expected to create a safer and more supportive environment for Pennsylvania's youth.

Public Safety and Workforce Development Updates

Public safety and workforce development are also key areas of focus in the budget discussions. The Pennsylvania Youth and Public Safety Caucus aims to address the interconnected issues of juvenile justice and community safety. Legislative efforts, such as those highlighted by Rep. Kazeem, include resolutions for studying best practices in juvenile detention and bills to improve interactions between law enforcement and individuals with cognitive impairments or mental illness.

Additionally, the investment in Rhoads Industries underscores the importance of workforce development in the state's economic strategy. By creating new job opportunities in the manufacturing sector and offering apprenticeship programs, the state aims to provide pathways for young people to secure stable and rewarding careers. This focus on workforce development is expected to contribute to both economic growth and crime reduction.

Future Prospects and Upcoming Legislative Sessions

Looking ahead, the Pennsylvania state legislature has several important sessions and meetings scheduled. The House Appropriations Committee is set to meet off the floor on July 7, 2025, followed by additional meetings on July 8 and July 9. These sessions will be crucial for finalizing budget allocations and addressing pending legislative actions.

Moreover, the legislature's focus on education, public safety, and economic development is expected to continue shaping the state's policy landscape. With significant investments and legislative initiatives underway, Pennsylvania is poised for a period of growth and transformation. The collaboration between public and private sectors, along with bipartisan efforts in the legislature, will be key to driving these changes forward.

Stay tuned for more updates as we continue to monitor and report on the latest developments in Pennsylvania's state budget talks and legislative actions. Your engagement and awareness are vital as we navigate these pivotal moments for our state's future.