Legislative Action

On November 12, Gov. Josh Shapiro, joined by Lt. Gov. Austin Davis and various senators and representatives, signed the official 2025-2026 state budget at a press conference held in the Governor’s Reception Room. Davis thanked legislative leaders and stated the passage of the 2025-2026 state budget “stands as a testament and a contrast to the chaos and the confusion that we see coming out of Washington D.C.”

Gov. Shapiro mentioned the current budget cuts taxes, makes “critical” investments, protects the Rainy Day Fund and leaves $8 billion in reserves. Shapiro highlighted the additional education funding present in the current budget bill and mentioned it builds on existing education progress. He noted that since he started his tenure as governor, 778 schools in Pennsylvania have been able to expand mental health services, 93 million free breakfasts were served to students and graduation rates are on the rise. “Consumer Affairs now ranks Pennsylvania as one of the top states for a quality public education in the entire country,” Gov. Shapiro stated. He explained that the current budget expands funding for basic and special education services, as well as continuing to fund existing line items for mental health, free breakfasts and updating infrastructure. He mentioned the funding formula for allocating money toward underfunded schools has increased by $565 million.

“We’re continuing to invest in apprenticeships, in [vocational technical] vo-tech programs, and hands-on education,” Gov. Shapiro stated. He emphasized a 50% increase in Career Technical Education apprenticeships. Gov. Shapiro also mentioned continuing investments in site developments for small businesses, as well as decreased taxes for business owners. “When I kicked off my campaign for governor, our corporate net income tax was 9.99%,” he recalled. “When I sign this budget, it will be reduced to 7.49%.” Gov. Shapiro announced $16 million in new funding will go toward the Department of Environmental Protection (DEP) for additional staff so that permitting processes can continue to become more efficient. He noted the Regional Greenhouse Gas Initiative (RGGI) is absent from the current budget. Gov. Shapiro added he is “looking forward to aggressively pushing for policies that create more jobs in the energy sector, bring more clean energy onto our grid and reduce the cost of energy for all Pennsylvanians.”

Gov. Shapiro added that these funds were more than “a bunch of numbers on a spreadsheet.” He continued, “It’s about investing in the needs of people now and investing in their futures.” Gov. Shapiro commended leadership and his administration for managing the needs of a divided legislature. Gov. Shapiro mentioned he knew the budget process would result in everyone having “to give a little and understand the perspectives of others a little bit better.” He continued, “We did that here, and as a result of our collective work, the good people of Pennsylvania are better off.”

He then took questions from the press.

Is there a $7 billion difference between the spending number and actual revenue for the commonwealth? Gov. Shapiro said, “This is a balanced budget that cuts taxes, that makes critical investments, that doesn't touch the Rainy Day Fund and leaves $8 billion in reserves.” He added that Democrats and Republicans came together to vote on this budget. Gov. Shapiro stated Pennsylvania is in a “strong fiscal position.”

Is mass transit funding on the table for next year? Gov. Shapiro said his administration will continue to work on transit and other “priorities” that are not in the current budget this year. He added that they had to accept a compromise, but transit remains a “critical” issue.

What comes after RGGI? Gov. Shapiro highlighted his Lightning Plan and said, “The House will continue to push that forward.” He noted the plan has the support of the Pennsylvania Building & Construction Trades Council and other environmental groups. Gov. Shapiro added he has had “really direct conversations” with Senate Republican leadership to act on energy issues. “We haven't done anything big on energy since the Rendell administration,” he said. “The time is now.”

Do you expect to need additional revenue sources next year? Gov. Shapiro joked, “I’m signing this year’s budget,” before adding that the 2025-2026 budget “sets us on a very, very strong path for the future.”

House Minority Leader Jesse Topper (R-Bedford), Senate Majority Leader Joe Pittman (R-Indiana) and Senate President Pro Tempore Kim Ward (R-Westmoreland) spoke at the Capitol in the aftermath of the bill signing to discuss the passing of the budget for fiscal year 2025-2026. Sen. Ward said the budget was “worth the wait” and they “got some great policy.” She cited exiting the Regional Greenhouse Gas Initiative (RGGI), permitting reform and not touching Rainy Day Funds as policies of the budget. She said it was a priority for her caucus and noted the uncertainty at the federal level. “While the budget isn’t everything that everybody wanted, we may be spending a little more than we had wanted to spend, but it was worth the wait and worth to spend,” Sen. Ward said. Sen. Pittman believed it is a “historic moment” for the commonwealth because the budget that was passed “enacted historical reforms that I believe are going to unleash the promise of Pennsylvania.” He said the budget sent a “crystal clear message to job creators and to families that we are open for business.” He pointed out the votes from both the House and Senate and described the budget as a “product of compromise.” He acknowledged the challenges of having a divided government but said he was looking forward to the “dynamic change” the budget brings.

Leader Topper described the budget process as a “long journey.” He explained the concerns the House Republican caucus had regarding the spending amount of the budget, as well as policy areas. “We said it really came down to three things — unleashing our energy potential, getting out of RGGI once and for all and permitting reform.” He touched upon other budget items, such as education funding and expanding tax credit programs to help students and families.

Three Democratic Supreme Court justices survived unusually contentious retention elections on November 4, keeping the court under Democratic majority control, after unprecedented spending by both parties and outside groups on the yes or no votes.  Justices Christine Donohue, Kevin Dougherty and David Wecht all withstood the onslaught of vitriolic campaign ads and literature, gaining an additional 10 year term, though Chief Justice Donohue will reach retirement age prior to fulfilling her new term.

Four sitting state Representatives will have new titles in January, as they won local offices in the November 4 elections. Republicans Torren Ecker (R-Adams) and Lou Schmitt (R-Blair) and Allegheny County Democrat Rep. Dan Miller won county Common Pleas court judgeships, while Rep. Josh Seigel (D-Lehigh) won the race be the next Lehigh County Executive. All are expected to resign their House seats after Christmas, following which

Speaker of the House Joanna McClinton will call for special elections to fill the seats, likely in March of 2026. In the interim, the vacancies will not affect the one seat Democrat majority, as it will reduce the caucuses to 100-99. All four seats are expected to remain with the party that currently has them, though both parties are seeking candidates to run in all four races. The winners will also have a leg up in the 2026 races for those seats in the 2027-28 session.

Agenda: Current Agenda (PDF)

The State Registration Board for Professional Engineers, Land Surveyors and Geologists met on November 13, via hybrid meeting format, in Harrisburg. Following are the highlights.

∙ Board President Robert Kudlawiec, PE, presided, and welcomed the members.

∙ Prosecution Liaison reported no consent agreements

Board Counsel Ashley Goshert, Esq. reported two Adjudication Orders, which the board had considered in Executive Session prior to the meeting.

∙ Regulatory Counsel Marc Farrell reported 16A-4717 Engineer Interns; Decoupling Experience Requirement with Intern Certificates amendment allows for differences in experience before and after an individual passed their exam; changes some language to engineer interns from engineer training; adds on some ethics requirements. No discussion, motion passed

∙ Board member reports: Kudlawiec had no report. Joe McNally, PG, reported on the recent ASBOG meeting, and noted that Martin Helmke, PG, has been elected to ASBOG Board, resigned from Registration Board.

There was discussion on Professional Land Surveyor applicants previously approved for NCEES Fundamentals of Surveying Exam using experience, not education, and Act 32 of 2024. Changing the experience gaining opportunities for before and after the fundamentals exam; 8 years before and 4 years after the exam; the same experience cannot be used to fill the separate requirements. Candidates have been confused on the new requirements

∙ Acting Commissioner Arion Claggett had no report.

∙ Board Administrator Kristel Hennessey Himler reported that 91% of Engineer licensees, 90.85% of Geologists, and 92% of PLS have renewed so far. She presented a proclamation from the Secretary to Helmke for his Board service.

∙ Board Counsel Ashley Goshert, Esq., presented a request from NCEES regarding a mutual recognition agreement with UK. Goshert explained that under current PA law, the Board is not permitted to enter into the agreement, though PA can accept UK Engineers. There would need to be a legislative fix to allow PA to enter the agreement.

∙ The Board reviewed and tabled several Examination application, and discussed invitations to attend several upcoming events.

Finally, the board discussed correspondence from PSLS regarding non-boundary examination.

John Fuhrer, PLS, noted that the PSU surveying program will close.

The next meeting is January 14, 2026, with both in-person and virtual options for attendees, in the Eaton Room, 2525 N 7th Street, Harrisburg, PA 17110​. Public Session begins at 10:30 AM

HB 416 RE: Fiscal Code Amendments (by Rep. Tarik Khan, et al)

Amends the Fiscal Code, providing narratives for spending funds authorized in SB 160,

Home Improvement Contractors Protection Act This bill increases the biennial fee the Attorney General assesses for registration of home improvement contractors to $100 until December 31, 2027.

Keystone Opportunity Zones This bill expands the KOZ expansions zones to include parcels in Cambria County, extends the KOZ at the Navy Yard in Philadelphia for an additional 10 years, and clarifies parcels within the Bellwether property in the City of Philadelphia. Fiscal Impact: To the extent new parcels are added to any KOZ, the Commonwealth may realize a reduction in certain tax revenues related to the zone. For the Navy Yard KOZ extension, the Commonwealth will realize reduced revenues due to the continued waiver of state taxes.

Solar for All This bill provides that any federally appropriated funds for the Solar for All program shall be used for projects approved by the Commonwealth Financing Authority and consistent with federal guidelines.

CFA School Facilities Program This bill adds Solar for Schools projects as eligible projects and provides for the use of funds appropriated in FY 2025-26. It also transfers $25 million in unspent CFA funds to the PlanCon restricted account for costs related to PlanCon projects.

Multimodal Transportation Fund This bill provides that the match requirements for the Commonwealth Financing Authority portion of the program are expanded to include local, regional, or metropolitan transportation authorities. The provision of this section is extended to December 31, 2026.

Regional Greenhouse Gas Initiative Regulation Abrogation This bill abrogates the Regional Greenhouse Gas Initiative regulation.

Permitting Reform This bill expands the Streamlining Permits for Economic Expansion and Development Program to include additional permits, provides timelines for permits to be ‘Deemed Approved’, and establishes a permit tracking system.

Senate Fiscal Note - Printer's No. 2576 -  PDF 

Re-reported as amended from Senate Appropriations Committee, read third time, and passed House, 11/12/2025 

Referred to House Rules Committee, re-reported on concurrence, as committed from House Rules Committee, and House concurred in Senate amendments, 11/12/2025 

Signed in House and in Senate, 11/12/2025 

Approved by the Governor, 11/12/2025- Act No. 45 of 2025

HB1332 RE: Capital Budget For Fiscal Year 2025-2026.(by Rep. Jordan A. Harris)

The Capital Budget Act of 2025-2026 provides for the capital budget for fiscal year 2025-2026 and for limitation on redevelopment assistance capital projects; and repeals section 2.1 of the Capital Budget Act of 2019-2020. Appropriates a total of $1.57 billion for public improvement projects, furniture and equipment, transportation assistance projects, redevelopment assistance projects and flood control projects. Asserts that the maximum amount of redevelopment assistance capital projects undertaken by the commonwealth for which obligations are outstanding shall not exceed, in arrogate, $3,350,000,000. Effective immediately. (Prior PN: 1630)   (PN 1630) The Capital Budget Act of 2025-2026 provides for the capital budget for fiscal year 2025-2026. Appropriates a total of $1.57 billion for public improvement projects, furniture and equipment, transportation assistance projects, redevelopment assistance projects and flood control projects.

Reported as committed from Senate Appropriations Committee, and read first time, 11/11/2025 

Read second time, 11/12/2025 

Read third time, and passed Senate, 11/19/2025 

Signed in House and in Senate, 11/19/2025 

Approved by the Governor, 11/19/2025 Act No. 48 of 2025

SB160 RE: General Appropriation Act of 2025. (by Sen. Scott Martin)

Provides appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the commonwealth, the public debt and the public schools for the fiscal year July 1, 2025, to June 30, 2026, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2025; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2025, to June 30, 2026, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2025; to provide for the appropriation of federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2025, to June 30, 2026, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2025; and to provide for the additional appropriation of federal and state funds to the Executive and Legislative Departments for the fiscal year July 1, 2024, to June 30, 2025, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2024. Section 8101 shall take effect immediately. The remainder of this act shall take effect July 1, 2025, or immediately, whichever is later.

Re-reported on concurrence, as amended from House Rules Committee, and House concurred in Senate amendments to House amendments, as amended by the House, 11/12/2025 (156-47)

Referred to Senate Rules and Executive Nominations Committee, re-reported on concurrence, as committed from Senate Rules and Executive Nominations Committee, and Senate concurred in House amendments to Senate amendments, as amended by the House, 11/12/2025 (40-9)

Signed in Senate, and in House, 11/12/2025 

Approved by the Governor, 11/12/2025 - Act No. 1A of 2025

HB1260 RE:Expanding Solar Energy Through E-Commerce Growth (by Rep. Joshua Siegel, et al)

The Solar-Ready Warehouse and Distribution Center Act provides for solar-ready projects involving a warehouse or distribution center; authorizing tax exemptions and special tax provisions; imposing duties on the Department of Environmental Protection; and imposing penalties

Reported as amended from House Energy Committee, read first time, and laid on the table, 11/18/2025 

HB2010 RE: Protecting New Family Homes by Requiring Fire Sprinklers (by Rep. Gregory Scott, et al)

Amends the Pennsylvania Construction Code Act, in Uniform Construction Code, further providing for revised or successor codes; and, in exemptions, applicability and penalties, repealing provisions relating to exemptions. Requires the Department of Labor and Industry to promulgate regulations adopting the standards for requiring automatic fire sprinkler systems in one-family and two-family dwellings. Repeals the section providing exemptions for automatic fire sprinkler systems in one-family and two-family dwellings.

Referred to House Housing and Community Development Committee, 11/6/2025

HB1556 RE: Advanced Clean Manufacturing Tax Credit (by Rep. Elizabeth Fiedler, et al)

Amends the Tax Reform Code, in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for an advanced clean manufacturing project and further providing for definitions. Adds more definitions. Redefines other definitions. Repeals the definition for “secretary.” Establishes the qualified advanced clean manufacturing tax credit equal to 30% of the qualified production costs for the taxable year with respect to any qualified advanced clean manufacturing project of the taxpayer. Permits a qualified taxpayer to apply the advanced clean manufacturing tax credit to not more than 20% of the qualified taxpayer’s qualified tax liability. Authorizes the tax credit and limits it to not exceeding five million per taxable year. Requires the department, in consultation with the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), to establish a qualified advanced clean manufacturing tax credit program and to consider and approve commitment letters for qualified production costs eligible for credits. Revises application and annual cap requirements. Declares the total amount of tax credits awarded shall not exceed $25 million in any fiscal year. Allows for the department to authorize an additional application period for commitment letters for the advanced clean manufacturing tax credit if the department determines that credits under this section are available for redistribution. Revises the provisions addressing certification, applications, period of issuance requirements and outlines criteria guidelines. Provides for carry forward, recapture and redistribution. Establishes public disclosure requirements and adds an expiration of the credits beginning after December 31, 2035, unless reauthorized by the General Assembly. Includes an advanced clean manufacturing project facility as defined in section 1790-L in the definition of “qualified project facility” and a qualified taxpayer as defined in section 1790-L in the definition of “qualified tax credit recipient.”

House Democratic Caucus Summary -  PDF 

Reported as amended from House Finance Committee, read first time, and laid on the table, 11/19/2025 

SB315 RE: Career and Technical Education Equipment Grant Funding Fix (by Sen. Lynda Schlegel Culver, et al)

Amends the Public School Code, providing for narratives describing education spending agreed to in the FY 2025-26 budget. Highlights of interest:

Equipment Grants:

Section 1850.4 is amended to extend from five years to ten years the period for which an area career and technical board may designate and spend funds in a capital reserve fund for purchasing equipment or maintaining facilities.

Section 1855 requires PDE’s calculations for the distribution of Career and Technical Equipment (CTE) Grants to be fixed as of the first day of June preceding the school year in which the allocation occurs. Calculations must be revised by PDE if the data based on the first day of June is incorrect

House Republican Caucus Summary -  PDF 

Re-reported as amended from Senate Rules and Executive Nominations Committee, 11/11/2025 

Amended on Senate Floor, on concurrence, and Senate concurred in House amendments, as amended by the Senate, 11/12/2025 

Referred to House Rules Committee, re-reported on concurrence, as committed from House Rules Committee, and House concurred in Senate amendments to House amendments, 11/12/2025 

Signed in Senate and in House, 11/12/2025 

Approved by the Governor, 11/12/2025 - Act No. 47 of 2025