Pennsylvania Perspective for Monday, March 2, 2026

March 2, 2026

Pennsylvania

PA Budget Hearings Update

The Pennsylvania General Assembly continued its Appropriations Committee Budget Hearings to examine the Governor’s proposed budget in detail. The House and Senate Appropriations Committees questioned the Department of Corrections in separate hearings on the $3.4 billion budget for the department, focusing on the closure of two prisons in Centre and Clearfield counties, staff turnover and institutional violence, and healthcare for inmates. The Senate Appropriations Committee also heard from the Department of Environment Protection and its proposed $4.1 billion budget, where Secretary Jessica Shirley addressed concerns over energy reliability and surging demand from AI infrastructure. The Department of Insurance and Pennie also met with the House Appropriations Committee to discuss the expiration of federal Affordable Care Act tax credits that have caused residents to drop coverage, where officials testified it would require $600 million in new funding to address the federal cuts.

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Governor Shapiro Addresses AI Chatbots and Mental Health

Governor Josh Shapiro announced a new online portal and a Department of State task force to investigate AI chatbots falsely claiming to be licensed mental health professionals. Governor Shapiro warned that these unlicensed tools pose significant risks to students who may turn to them due to a lack of safe spaces or human counseling. To further promote safety, the Department of Education released a new “AI and Digital Media Literacy” toolkit to help students and educators navigate companion technology and avoid deepfake scams.

IFO Releases February Monthly Revenue Update

The Independent Fiscal Office (IFO), the state agency responsible for providing revenue projections and impartial analysis for state legislators, has released its monthly revenue update for the month of February, showing that actual collections were $16 million lower than IFO projections. The report also shows that revenues of $2.96 billion reflect an increase of $86 million (+3.0%) compared to the same month in the prior year. View the report here.

Pittsburgh

Pittsburgh in the U.S. Biotechnology Race

Members of the National Security Commission on Emerging Biotechnology (NSCEB) visited Pittsburgh, hailing the region as a “large test case” for securing U.S. leadership in cutting-edge science. Commissioners warned that the U.S. must outpace global competitors within the next three years to avoid “catastrophic” security risks, including the potential for adversaries to withhold breakthrough medical treatments. The tour showcased Carnegie Mellon University’s AI Science Foundry, a cloud lab where robots conduct experiments autonomously 24/7, and the University of Pittsburgh’s nearly complete BioForge facility.

Federal

PA Reactions to Military Operations in Iran

President Donald Trump announced early Saturday that the United States and Israel launched “Operation Epic Fury,” a major military operation against Iran. Pennsylvania’s elected leaders are sharply divided on their reactions to the strikes. Republicans, including Senator Dave McCormick (R-PA) and Pennsylvania State Treasurer and the party’s endorsed gubernatorial candidate Stacy Garrity, congratulated the President on the attacks, while Democrats, including Governor Josh Shapiro, condemned the attacks as unauthorized unilateral actions that risk dragging the nation into another prolonged Middle East conflict. Senator John Fetterman (D-PA) is one of the only Democrats to praise President Donald Trump’s strike on Iran. Governor Shapiro and Senator McCormick have also released statements offering prayers for the families of the three U.S. service members killed and five seriously wounded as part of the military actions.

Cozen Corner

Priced Out: Inside America’s Housing Crisis

America is facing an affordable housing reckoning. With home prices and rents still elevated nationwide, states and cities like New York and Philadelphia are pursuing new construction, preservation, and policy reforms to close widening affordability gaps. But “affordable” means different things to different communities — from those experiencing homelessness to middle-income families struggling to stay put. Featuring Public Strategies’ Mark Alderman (DC), Katrell Lewis (NY), and Brianna Westbrooks (PA). Click here to listen.

Authors

About Cozen O’Connor Public Strategies

Cozen O’Connor Public Strategies, an affiliate of the international law firm Cozen O’Connor, is a bipartisan government relations practice representing clients before the federal government and in cities and states throughout the country. With offices in Washington D.C., Richmond, Albany, New York City, Philadelphia, Harrisburg, Chicago, and Santa Monica, the firm’s public strategies professionals offer a full complement of government affairs services, including legislative and executive branch advocacy, policy analysis, assistance with government procurement and funding programs, and crisis management. Its client base spans multiple industries, including healthcare, transportation, hospitality, education, construction, energy, real estate, entertainment, financial services, and insurance.

About Cozen O’Connor

Established in 1970, Cozen O’Connor has over 775 attorneys who help clients manage risk and make better business decisions. The firm counsels clients on their most sophisticated legal matters in all areas of the law, including litigation, corporate, and regulatory law. Representing a broad array of leading global corporations and middle-market companies, Cozen O’Connor serves its clients’ needs through 31 offices across two continents.

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