Legislative Action

Summary of Legislative Activity | July 2026

House and Senate Agree to $50.8 billion state budget, Just Two Weeks Late

After 12 days of overtime, the 2026-27 budget has been finalized. The $50.8 billion state spending plan (HB2400) and the ancillary bills, to implement it were signed into law on Sunday. New data center regulations, new education funding, and other bills were also approved with the wide-ranging spending package.

The 2026-27 budget actually amounts to nearly $52.2 billion when counting $1.3 billion in Medicaid costs deferred to next year, otherwise making the budget amount to $50.8 billion in general appropriations. Taxpayers saw a win with no broad-based tax increases and education saw more funding in hundreds of school districts. The final product provides for $2.5 billion less than Shapiro’s original $53.3 billion proposal with lawmakers preventing the use of Rainy Day funds that are meant for emergencies. Moreover, a number of policies Shapiro requested are not touched upon such as legalizing recreational cannabis, energy, and skill games regulation.

A lynchpin of the bill is its reliance on money in “off-budget special funds,” where revenue money has already been collected, but state bureaucracies have not spent all of it. They are outside of the General Fund and there is no language in the bill citing from where money has been allocated to amount to the $580 million from shadow budget reserves. Another $1.24 billion comes from unused, lapsed funds that are reclaimed toward the budget.

 

Despite the accounting gimmicks, the 2026-27 budget still puts the state in a structural deficit. Pennsylvania’s Independent Fiscal Office reports a long-term projection of structural imbalance as spending is expected to outpace revenues over the next several years. (https://www.ifo.state.pa.us/download.cfm?file=Resources/Documents/General_Fund_Budget_Update_BB_2026_07.pdf )

 

The budget agreement has been described as allowing the commonwealth “to fight yet another day” as said by Senate Appropriations Chair Scott Martin (R-Lancaster). Not everyone remained as optimistic with some fiscal conservatives condemning the shifting of funds such as Rep. Marc Anderson (R-York). But the budget largely was able to appease both sides of the aisle and was seen as a move of compromise and thus gives legislators more time to address structural issues that are critical to address for the state.

 

However, some other pressing issues facing the General Assembly did not make the final cut in the budget deal, as Gov. Josh Shapiro and lawmakers in the split legislature were unable to reach a compromise — or didn’t want to touch the contentious issues until the fall, again sidelining some of Shapiro’s top budget priorities. Legislation authorizing “Games of Skill”, after the Supreme Court declared them to be illegal gambling devices, was not taken up, ostensibly pushed to early fall to meet the Court’s 120 day enforcement deadline; and other legislation to have PA join many of its neighbors authorizing and regulating adult use recreational cannabis also did not make the final cut. The House and Senate continue to differ on how to implement (or even to do it at all) both of these issues.

Gov. Shapiro proposed generating new revenue streams to help the state fix its multibillion-dollar structural deficit in his last four budget addresses, but disagreements on how to do them have pushed them to the future.

Revenue generators

The two major proposed new sources of revenue proposed by Shapiro have been met with resistance by Senate Republicans, who dispute the potential revenue, and haven’t reached agreement within their caucus on how to address the issues. Democrats again didn’t get the minimum wage increase they have pushed for two decades for, raising the hourly minimum from $7.25 to $15 — arguing the higher wage would amount to  $80 million in higher income tax revenues, and possibly save money by removing some folks at the lower economic levels from social programs. Nor was he able to get the split General Assembly, where Democrats control the House and Republicans lead the Senate, to approve adult-use cannabis, which his office estimated would bring in $729.4 million in its first year, largely through licensing. (House Democrats have approved plans for a minimum wage increase

“We can act within the 120 days, we can act after the 120 days,” Senate Majority Leader Joe Pittman (R., Indiana) said on Sunday. “But the choice is now quite simple. These machines are illegal, and in less than 120 days, they will be leaving the marketplace.”

 

Data center reporting requirements

Data centers — which are popping up across Pennsylvania as artificial intelligence usage increases and communities are pushing back on where they are being built — will be required to submit information about their energy and water usage

Beginning next summer, data centers in the state with a peak energy demand greater than 10 megawatts will be required to submit information annually to the Department of Environmental Protection.

Outlined as part of this year’s fiscal code (SB146), those reports will be publicly-accessible. Data centers that do not submit information about their resource usage will be fined $10,000 a day.

 

Data center regulations

A data center regulation bill, which would have limited state benefits for data center developers and was championed by Shapiro, was not included in the final budget deal. The governor called for limiting a sales and use tax exemption and expediting permitting to projects that comply with a set of transparency and environmental standards.

And several other data center regulation efforts that have received bipartisan support in recent weeks were also absent from the final spending package.

That included efforts to repeal the existing sales tax exemption afforded to data center developers and attempts to enact a local or statewide moratorium on new data center development.

Both chambers passed language repealing the tax exemption and advanced differing bills to freeze development. One Democratic-sponsored bill would have given municipalities the option to implement a 180-day moratorium on new centers. The other, a Republican-sponsored measure, would allow for local moratoriums up to 18 months.

 

Different Perspectives of the Budget Between the Caucuses

After the voting was done, House and Senate majorities both patted themselves on the back for the successful product, though they each emphasized different “victories”. House Democrats (https://www.pahouse.net/InTheNews/NewsRelease/?id=1443970 ) focused on workforce issues and health care, while Senate Republicans (https://www.pasenategop.com/news/pa-senate-approves-fiscally-responsible-state-budget/)  highlighted the no new taxes issue, and fiscal responsibility and education. But leaders from both chambers praised their own ability and willingness to temporarily put aside partisan differences in light of the split majorities and get the job done close to the deadline.

Legislators return to Harrisburg in September to finish up their legislative work before hitting the campaign trail, in hopes of getting the chance to “fight again another day,” next session.

 

 

State Registration Board for Professional Engineers, Land Surveyors and Geologists July 22 Meeting Notes

 

The State Registration Board for Professional Engineers, Land Surveyors and Geologists met on July 22 via hybrid meeting format, in Harrisburg. Following are the highlights.

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

∙ Prosecution Liaison presented two consent agreements, which the Board had considered in Executive Session prior to the open meeting. Both were approved.

Board Counsel Ashley Goshert, Esq. presented one case, for Joshua Delaney. A final Adjudication & Order was approved.

∙ Regulatory Counsel Marc Farrell was unavailable, and did not submit a report.

∙ Board member reports: Kudlawiec noted the upcoming NCEES meeting in August.

∙ New Board Administrator Sharona Evans reported there was no update on the DEP Post-Construction Stormwater Management Manual. DEP has asked to be placed on the December meeting agenda. Evans also acknowledged information that the PSU Wilkes campus Surveying program was closing.

∙ The Board ratified staff approval of two Act 41 applications, and provisionally denied a third application.

The next meeting is September 23, 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

 

 

This Month in the PA Bulletin:

 

Governor’s Office Announces Regulatory Agenda

Executive Order 1996-1 requires all agencies under the jurisdiction of the Governor to submit for publication semi-annually an agenda of regulations under development or consideration. The agendas are compiled to provide members of the regulated community advanced notice of regulatory activity. It is the intention of the Administration that these agendas will serve to increase public participation in the regulatory process. Agency contacts should be contacted for more information regarding the regulation and the procedure for submitting comments.

 

This Agenda represents the Administration’s present intentions regarding future regulations. The information provided is current as of July 1, 2026. The nature and complexity of an individual regulation obviously will determine whether and when any particular regulation listed (as well as any considered subsequent to publication of this Agenda) is published.

 

 

State Registration Board for Professional Engineers, Land Surveyors and Geologists
Ethics Continuing Education 49 Pa. Code Chapter 37 (# 16A-4716)	Summer 2026, as Proposed	This rulemaking would add a requirement of 2 hours of ethics-related training into the existing continuing education requirement of 24 hours per biennium. Statutory Authority: Section 151(l) of the Engineer, Land Surveyor and Geologist Registration Law, 63 P.S. § 151(l). The Board is drafting the proposed rulemaking package.	Sharona Evans (717) 772-8538

 

 

Legislative Activity

The following bills have been acted upon in the General Assembly this past month.  

 

Bidding / Contracting

 

Cosponsor memo filed

 

HCO3755 RE: Prohibiting Indemnification Clauses in Contracts (by Rep. Timothy R. Bonner (R)

Aims to prohibit indemnification clauses within contracts in the commonwealth.

Cosponsor memo filed, 7/16/2026

 

 

Budget Bills

 

HB2400 RE: General Fund for fiscal year July 1, 2026, to June 30, 2027. (by Rep. Jordan A. Harris)

The General Appropriation Act of 2026 provides appropriations from the General Fund for the expenses of certain agencies of the Executive Department for the fiscal year July 1, 2026, to June 30, 2027, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2026. Makes a state appropriation of $24,171,000 from the General Fund to the Department of Human Services for rape crisis programs. Asserts that part of all appropriations in Part II unexpended, uncommitted or unencumbered as of June 30, 2027, shall automatically lapse as of that date, except as otherwise provided by law or by this section. Effective July 1, 2026, or immediately, whichever is later.

Re-reported as amended from Senate Appropriations Committee, read third time, and passed Senate, 7/12/2026 

Referred to House Rules Committee, re-reported from House Rules Committee and House concurred in Senate amendments, 7/12/2026

Signed in the House and Senate, and Approved by the Governor, 7/12/2026. Act No. 1A of 2026

 

HB2401 RE: Capital Budget For Fiscal Year 2026-2027. (by Rep. Jordan A. Harris)

Provides for the capital budget for fiscal year 2026-2027. Establishes overall limitations on debt to be incurred for capital projects. Provides that the maximum principal amount of additional debt to be incurred during the 2026-2027 fiscal year for capital projects shall total $1,645,000,000, with $1,200,000,000 for buildings and structures, $20,000,000 for furniture and equipment, $100,000,000 for transportation assistance projects and $325,000,000 for redevelopment assistance projects. Effective immediately.

House Democratic Caucus Summary –  PDF

Reported as committed from Senate Appropriations Committee, and read first time, 7/10/2026 

Read second time, 7/11/2026

Read third time, and passed Senate, 7/12/2026 

Signed in House and in Senate, and approved by the Governor, 7/12/2026. Act No. 22 of 2026

 

SB146 RE: The Fiscal Code Amendments. (by Sen. Lisa Baker)

Amends the Fiscal Code, making various changes to implement the spending provided for in HB2400.

House Democratic Caucus Summary –  PDF 

Re-reported as amended from House Appropriations Committee, read third time, and passed House, 7/12/2026

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, 7/12/2026

Signed in House and in Senate, and approved by the Governor, 7/12/2026 Act No. 21 of 2026

 

SB1414 RE: Capital Facilities Debt Enabling Act. (by Sen. Michele Brooks, et al)

Amends the Capital Facilities Debt Enabling Act, in capital facilities, further providing for administration of redevelopment assistance capital projects. Requires an applicant for a redevelopment assistance capital project in which funding was approved to notify the secretary if the project cannot be completed and the amount of the project grant approved will not be utilized for the original project scope. Prohibits the secretary from reallocating the amount of the project grant approved for the project that remains unexpended, unencumbered or uncommitted to a redevelopment assistance capital project itemized under subsection (a) in a county other than the county in which the original project was.

Referred to Senate Appropriations Committee, 7/8/2026

 

SB1419 RE: Pennsylvania Robotics Team Support Grant Program Fund. (by Sen. Devlin J. Robinson, et al)

Amends the Public School Code, providing an article for Pennsylvania Robotics Team Support Grant Program; and establishing the Pennsylvania Robotics Team Support Grant Program Fund. Provides definitions. Asserts that the money in the fund is appropriated on a continuing basis to the department for the purpose of awarding grants under the article. Lists what the fund shall consist of. Requires the transfer of $2,500,000 from the General Fund to the fund. Requires an application process and lists what an application must include. Outlines eligibility and uses of the grant money. Limits a grant award to no more than $10,000 per robotics team in a fiscal year. Requires annual reporting.

Referred to Senate Education Committee, 7/10/2026 

 

Energy Development Bills

 

SB349 RE: Decommissioning of Solar Energy Facilities. (by Sen. Gene Yaw, et al)

Amends Title 27 (Environmental Resources), in environmental protection, adding a chapter to provide for decommissioning of solar energy facilities. Provides definitions. Mandates a solar energy facility agreement executed after the effective date to provide that the grantee is responsible for decommissioning the grantee’s solar energy facility on the surface property owner’s property per this chapter no later than 18 months after the facility has ceased producing electricity, except for an instance when the grantee is actively working to recommence production of electricity, including an instance after the occurrence of a force majeure or similar event. Requires proof of financial assurance. Stipulates that the amount of financial assurance shall be equal to the estimated cost to decommission the solar energy facility. Requires a grantee to deliver a decommissioning plan and proof of financial assurance to the county recorder of deeds, providing guidelines. Specifies what shall be an acceptable form of financial assurance. Prohibits a decommissioning plan, the associated financial assurance and the salvage value of a solar energy facility to reduce the financial assurance from being separated from the solar energy facility through a change in grantee ownership. Provides guidelines for the new grantee and the prior grantee. Requires the Department of Environmental Protection, by regulations and in consultation with the solar energy industry, to develop a provisional standard form for a decommissioning plan and financial assurance to be filed with the county recorder of deeds. Specifies what temporary regulations shall not be subject to. Outlines the contents that the provisional standard form and final standard form shall include. Provides for the prevention of forced labor. Provides for the preemption of local ordinances and regulations, asserting that the regulation of the decommissioning of solar energy facilities is a matter of general statewide interest that requires uniform statewide regulation. Establishes what the requirements under this chapter shall not apply to.

House Democratic Caucus Summary –  PDF 

Re-reported as committed from House Appropriations Committee, read third time, and passed House, 7/12/2026 

Signed in House and Senate, 7/12/2026 

Approved by the Governor, 7/20/2026- Act No. 44 of 2026

 

Environmental Building Standards

NONE

 

Liability

NONE

 

Local/State Government/Regulations

 

HB513 RE: Pennsylvania State Coordinate System. (by Rep. Eric Davanzo, et al)

Amends Title 76 (Weights, Measures and Standards), providing for Pennsylvania State Coordinate System, for notation requirements and for duties of State Geospatial Coordinating Board; and making a repeal. Establishes that the most recent system of plane coordinates based on the National Spatial Reference System, known as the State Plane Coordinate System, which has been established by the National Geodetic Survey or its successors for defining and stating the horizontal and vertical positions or locations of points on the surface of the earth within this commonwealth, shall be known as the Pennsylvania State Coordinate System. Defines parameters. Asserts that specified official geodetic datums to which geodetic coordinates shall be as defined for the National Spatial Reference System or its successors and may be accessed via the National Oceanic and Atmospheric Administration continuously operating reference stations network. Requires previous versions of the Pennsylvania State Coordinate System to include the Pennsylvania Coordinate System of 1927 and the Pennsylvania Coordinate System of 1983 as specified by the act of June 2, 1937 (P.L.1208, NO. 310). Describes the Pennsylvania State Coordinate System contingent upon zoning provided in the published National Spatial Reference System by the National Geodetic Survey or its successors. Specifies uses and asserts that the determination of which layer to use will be a user-based decision. Asserts that the commonwealth will be divided into smaller regional zones as established by the National Geodetic Survey or its successors for use of the Pennsylvania State Coordinate System. Asserts that coordinates shall consist of two distances expressed in meters and decimals of a meter or international feet and decimals of a foot, with additional details regarding distance. Outlines notation requirements for any land description, plat, map, report of survey or other document in which coordinates based on the Pennsylvania State Coordinate System are used. Asserts that nothing in this chapter shall be construed to prohibit the appropriate use of other datums and other geodetic reference networks. Repeals an act to describe, define and officially adopt a system of coordinates for designating the positions of points on the surface of the earth within the Commonwealth of Pennsylvania, insofar as it is inconsistent with the addition of 76 PA.C.S. CH. 11.

Read second time, and re-referred to Senate Appropriations Committee, 7/11/2026 

 

HB1239 RE: Powers of Unit Owners’ Association. (by Rep. Liz Hanbidge, et al)

Amends Title 68 (Real and Personal Property), in general provisions relating to condominiums, further providing for definitions; in management of the condominium, further providing for powers of unit owners’ association; in general provisions relating to planned communities, further providing for definitions; and, in management of planned communities, further providing for power of unit owners’ association. Provides definitions, adding a roof of a unit that is not solely owned by an individual, is not maintained, repaired or replaced by the association to the definition of “detached roof.” Prohibits the unit owners’ association from prohibiting the installation of solar energy systems on a detached roof, striking restricting from the language. Adds that the subsection does not apply to a freestanding solar energy system placed on a parcel of land within a property deeded other than to the association. Specifies the purposes for which the association may provide reasonable regulation of solar energy systems.

Referred to Senate Urban Affairs and Housing Committee, 7/9/2026 

 

Local/Property Tax Reform

NONE

 

Mandate Waivers

NONE

 

Mechanic’s Lien

NONE

 

Permitting

NONE

 

Prevailing Wage

NONE

 

Procurement

NONE

 

Professional Licensure

NONE

 

 

Regulatory Process

NONE

 

Separations Act

NONE

 

School Construction

NONE

 

State/Local Taxes

 

HB2359 RE: Computer Data Center Equipment Incentive Program. (by Rep. Joe Ciresi, et al)

Amends the Tax Reform Code, in computer data center equipment incentive program, Further amends the general rule under eligibility requirements to mandate the owner or operator of the computer data center to certify that an agreement has not been entered into, or will not be entered into, with an agency, or any entity acting on behalf of an agency, that relates to the construction, development or location of the facility and requires confidentiality, nondisclosure or otherwise restricts the agency from disclosing information to members of the public. Specifies that the added requirements shall not apply to a computer data center with a peak electric demand of less than 10 megawatts, that subsection (a)(3)(ii) shall not apply to a commercial data center that has commenced construction prior to the effective date and that subsection (a)(4) shall not apply to an owner or operator or qualified tenant holding a certification under this subarticle prior to the effective date. Revises notification and records provisions to provide for the satisfaction of investment and compensation requirements, as well as other requirements.

Referred to Senate Finance Committee, 7/10/2026 

 

 

Transportation/Highways

NONE

 

Worker’s Comp

NONE

 

Workforce Development

 

HB2705 RE: Artificial Intelligence in the Workforce. (by Rep. Melissa L. Shusterman, et al)

The Artificial Intelligence Workforce Impact Act provides for a report on artificial intelligence (AI) in the workforce; and imposes duties on the Department of Labor and Industry (L&I) and Department of Community and Economic Development (DCED). Outlines General Assembly findings and declarations. Provides definitions. Directs L&I, in consultation with DCED and the Office of Administration, to conduct a comprehensive study on AI and its future impact on the workforce in this commonwealth. Requires the final report to be submitted to the General Assembly not later than 18 months after the effective date. Details what information the report shall be required to include. Provides for collaboration in preparing the report. Asserts that this act shall expire upon transmittal of the impact study and report under section 4.

Referred to House Labor and Industry Committee, 7/16/2026

 

 

Upcoming meetings of Interest

Some House Committee meetings and session can be viewed online at: https://www.pahouse.net/LegisTrak/CommitteeMeetings

Senate Committee meetings and session can be streamed at: https://www.pasenategop.com/watch/

 

 

2026 House Session Schedule (Subject to Change)

September 28, 29, 30

October 5, 6, 7, 19, 20, 21

November 9, 10

 

2026 Senate Spring Session Schedule

September 28, 29, 30

October 5, 6, 7, 19, 20, 21

November 17, 18

 

 

State Registration Board for Professional Engineers, Land Surveyors and Geologists Meeting Schedule 

PUBLIC WELCOME 

All Board meetings are held in person and remotely via Teams. In-person meetings will be held at a new location: 2525 N. 7^th Street, Harrisburg, PA, unless otherwise indicated.

https://www.dos.pa.gov/ProfessionalLicensing/BoardsCommissions/EngineersLandSurveyorsandGeologists/Pages/General-Board-Information.aspx#.VHNkfFZOk5s

2026 dates: September 23, December 2

2027 dates: January 13, March 10, May 12, July 14, September 15, November 17

2028 dates: January 12, March 8, May 10, July 12, September 13, November 15

 

State Geospatial Coordinating Board

2026 GeoBoard Quarterly Meetings: August 20, November 12

HYBRID virtual conference & in person at: Pennsylvania Geological Survey 3240 Schoolhouse Rd, Middletown, PA 17057

https://www.pa.gov/en/agencies/oa/programs/information-technology2/state-geospatial-coordinating-board.html

 

L&I: UNIFORM CONSTRUCTION CODE REVIEW AND ADVISORY COUNCIL MEETINGS

https://www.pa.gov/agencies/dli/programs-services/labor-management-relations/bureau-of-occupational-and-industrial-safety/uniform-construction-code-home/ucc-review-and-advisory-council.html