📰 Capitol Weekly Review

July 21–25, 2025 | Legislative & Executive Highlights from Harrisburg

A quiet Capitol—for now

Once again, the Capitol is still—at least on the surface. Neither the House nor Senate is scheduled to be in session this week, echoing last week’s quiet. But beneath that calm, negotiations continue behind closed doors, with top leaders and the Governor still working to hammer out a long-overdue budget agreement.

Governor Shapiro, now nearly a month past the constitutional deadline, has voiced growing frustration with the pace of talks—despite describing them as “cordial” and “respectful.” The discussions remain focused on a series of high-stakes, deeply interwoven issues: transit funding, education equity, Medicaid investments, and long-term structural costs. As the Minority Leader in the House put it, these are not the kind of debates that can be resolved “in a silo.”

There is still no clear signal of a breakthrough. However, if an agreement does materialize, legislators will be given short notice to return to Harrisburg and take up a finalized budget vehicle—one that’s already been hollowed out and positioned for this purpose.

📰 Budget Talks Drag On as Governor Expresses Frustration Over Slow Pace

Gov. Shapiro frustrated by length of 'cordial' and 'respectful' Pa. budget negotiations – Post-Gazette
As the budget impasse enters its fourth week, Governor Josh Shapiro publicly acknowledged his frustration with the slow-moving negotiations. While talks remain civil, the issues at hand—transit, education, Medicaid, and long-term cost reforms—are proving complex and interconnected. Legislative leaders stress that they’re seeking lasting solutions rather than temporary fixes. Still, no deal has emerged, and pressure continues to build as school districts and local agencies begin to feel the uncertainty.

🏛️ Negotiations Progressing, But Divisions Persist

Publicly, legislators express optimism:

• Senate Appropriations Chair Scott Martin (R) commented, “I feel good about where the conversations are going.”

• Governor Shapiro echoed the sentiment, telling reporters, “We're going to get there soon.”

• Privately, however, sources concede deep ideological divides persist between the Senate GOP and the House Democratic majority on spending levels and revenue sources.
  • • Pennsylvania Capital-Star

🧾 Spending Bill Gutted in Performative Legislative Moves

As budget negotiations drag on, Pa. lawmakers put big spending bill on shelf – Post-Gazette
In a show of procedural readiness, the House passed a $50 billion spending bill last week, only for the Senate Appropriations Committee to immediately strip it of all but $11 million in allocations. The move was widely seen as symbolic—intended to preserve the bill as a shell vehicle to be filled once top leaders strike a deal. Until then, lawmakers remain on standby.

🏛️ Legislative & Executive Action Highlights

Main Street Momentum
Governor Josh Shapiro visited Lewistown to celebrate its new Main Street designation through the Main Street Matters grant initiative. The designation brings up to $225,000 in initial funding and prioritization for future state investments. Shapiro advocated for doubling the program's budget—emphasizing the role of local economies in statewide recovery and revitalization.

🏘️ “We invest in places where children can grow up and seniors can grow old.” – Julie Fitzpatrick, PA Downtown Center

📜 New Legislation Highlights

A wave of legislation was introduced this week, spanning energy, education, firearms regulation, and economic empowerment. Notable bills include:

• HB1749 (Rep. Madsen) – Introduces tax credits for energy-efficient upgrades in Pennsylvania’s steel industry.

• HB1751 (Rep. Friel) – Creates a new Office of Employee Ownership under DCED and launches the Main Street Employee Ownership Grant Program.

• HB1752 (Rep. Curry) – Commissions a feasibility study for alternatives to Keystone Exams.

• HB1747 & HB1748 (Rep. Shusterman) – Tightens restrictions on semiautomatic assault rifle sales to minors and establishes a pilot program to support homeless youth in higher education.

Education & Public Health:

• HB1762: Proposes in-state tuition guarantees for all PA residents.

• SB940/SB941: Would require lactation rooms in Commonwealth buildings and courthouses.

Equity & Opportunity:

• HB1760: Expands support for small and veteran-owned businesses, including waivers and disparity studies.

• SB928: Establishes a Pennsylvania Film Producer Grant Program under the Council on the Arts.

Public Safety:

• SB44: Supports victims of human trafficking with license restoration and support services.

• HB1757 & HB1758: Address firefighter health data and introduce an employer tax credit for volunteer emergency responders.

Nutrition in Schools:

• SR119 (Sen. Michele Brooks): Calls on Congress to support the Whole Milk for Healthy Kids Act—advocating the return of whole and 2% milk to PA schools.

🥫 “Pennsylvania Beautiful” Bill Could Restrict SNAP Use for Certain Foods

A new proposal in the Pennsylvania legislature dubbed the “Pennsylvania Beautiful” bill would prohibit SNAP recipients from purchasing “junk food” such as candy, soda, and energy drinks. Proponents argue the policy promotes public health and reduces litter, but opponents say it stigmatizes low-income families and creates unnecessary bureaucracy. The bill echoes similar national debates about paternalism in public benefits.

🔗 Read more on WESA

🍸 Alcohol Producers Push Back on New Pennsylvania Fee

A new licensing fee for alcohol producers in Pennsylvania could cost the industry up to $17 million annually. Craft distilleries and brewers warn that the regulation—proposed by the Pennsylvania Liquor Control Board—threatens to stifle small producers already grappling with inflation and post-COVID recovery. Industry advocates are calling for legislative oversight or a rollback of the new fee structure.

🔗 Full story via The Spirits Business

🩺 Caps on Medical Student Loans Could Deepen Doctor Shortage

A federal proposal to cap student loans for graduate students is drawing criticism from healthcare leaders who warn it could worsen the nation’s ongoing physician shortage. Medical schools argue that the caps don’t reflect the true cost of training and could dissuade students—especially from underserved communities—from entering the profession. The debate comes amid rising healthcare demands and mounting medical debt.

🔗 Read the full Stateline analysis

🧑‍💼 House Bid to Restore Federal Worker Union Rights Falls Short

A push by House Democrats to force a vote restoring collective bargaining rights to federal workers failed this week after a procedural motion fell short of the required majority. The resolution sought to overturn Trump-era restrictions on federal unions, with proponents citing a need for fairness and workforce stability. Though unsuccessful, the effort signals a continuing legislative battle over labor protections in federal employment.

🔗 Coverage via Pennsylvania Capital-Star