Pennsylvania
PA Finalizes $50.1B FY26 Budget After Months-Long Delay
Pennsylvania’s FY26 state budget was signed into law by Governor Josh Shapiro (D) after being passed with bipartisan support in both chambers on Wednesday, ending a 135-day impasse. The $50.1 billion spending plan reflects a 4.7% increase over the previous fiscal year, though it ended up more than $1.4 billion below Gov. Shapiro’s original February proposal and more than $2 billion above the Republicans’ preferred spending level.
The budget includes significant investments in public education, allocating $565 million to underfunded school districts in response to a 2023 court ruling on funding inequities. It also provides $125 million for school facilities, $100 million for school mental health and safety, and $105 million in general school district subsidies. Special education, early intervention, and Pre-K programs also saw modest increases. A major change is the reform of cyber charter school reimbursements, expected to save districts $178 million, alongside new wellness check requirements for cyber charter school students.
Other notable provisions include the creation of a new Working Pennsylvanians Tax Credit worth 10% of the federal earned income tax credit, projected to deliver $193 million in relief to low- and moderate-income families. The Educational Improvement Tax Credit program was expanded by $50 million. The budget maintains the state’s $7.4 billion rainy day fund and draws nearly $4 billion from other reserves and unused agency funds, avoiding new taxes and as well as new revenue sources.
A key concession in the final deal was Pennsylvania’s withdrawal from the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program aimed at reducing carbon emissions. This move, long sought by Senate Republicans, drew criticism from environmental advocates and some Democrats, who viewed it as a setback for climate policy. In exchange, Democrats secured additional education funding and the earned income tax credit. The budget also includes permitting reforms to expedite environmental approvals, which Republicans say will improve the state’s business climate. Mass transit funding, however, was excluded from the final agreement, with SEPTA authorized to use capital funds to cover shortfalls.
House Panel Advances Criminal Justice Bills Amid GOP Concerns
The Pennsylvania House Judiciary Committee approved bills expanding post-conviction relief for veterans and reducing fees for juvenile offenders, despite some Republican objections to vague language. Votes on the measures were split, with some passing unanimously and others advancing along party lines. The Pennsylvania Capital-Star has more.
PA Seeks Greater Oversight of Regional Grid Operator
A new bill tied to Pennsylvania’s budget gives the Public Utility Commission authority to review PJM Interconnection’s load forecasts and grid connection requests, aiming to improve transparency and planning. The move responds to rising energy costs and growing concerns over the impact of large data centers on infrastructure and pricing. The Philadelphia Inquirer has more.
PA Turnpike Targets High-Dollar Toll Scofflaws With Legal Action
Drivers who owe more than $12,000 in unpaid tolls may now face civil charges from the Attorney General’s Office. The Turnpike Commission has referred over 100 cases and says the move aims to ensure fairness while maintaining high collection rates. PhillyVoice has more.
Philadelphia
Council Delays Vote on HOME Initiative Funding, Creating Tight Bond Deadline
The Philadelphia City Council postponed a key vote on Mayor Cherelle Parker’s (D) Housing Opportunities Made Easy (HOME) Initiative, leaving the administration with a narrow window to approve the budget and issue $400 million in city bonds before year-end. The Philadelphia Inquirer has more.
City Adjusts Contracting Practices Amid DEI Scrutiny
The Parker administration has ended race- and gender-based goals in city contracts, shifting to incentives for small and local businesses in response to legal and political challenges. The Philadelphia Inquirer has more.
Pittsburgh
Council Signals Major Revisions Ahead for 2026 Budget
City Council members criticized Mayor Ed Gainey’s (D) proposed budget as unrealistic and underfunded, especially in areas like overtime, utilities, and public safety. Over the next two months, council may rewrite the plan entirely to address a projected deficit and long-term financial concerns. The Pittsburgh Tribune-Review has more.
Federal Judge Dismisses Lawsuit Challenging City’s Affordable Housing Policy
A federal judge tossed out a lawsuit against Pittsburgh’s inclusionary zoning law, ruling the plaintiffs lacked standing but leaving open the possibility of future legal challenges. WESA has more.
Federal
Longest-Ever U.S. Government Shutdown Ends With Temporary Funding Deal
President Donald Trump (R) signed a bill Wednesday night to reopen the government after a historic 43-day shutdown, though it did not resolve Democrats’ demand to extend Affordable Care Act subsidies. The bill restores agency funding, reverses layoffs, and provides backpay for federal workers. Senate Democrats now face a December deadline to pass a separate bill addressing health care subsidies. Pennsylvania’s House members voted on party lines.
Sen. McCormick Invites Discontented New Yorkers to Consider PA
U.S. Senator Dave McCormick (R-PA) released a video encouraging New Yorkers who may be dissatisfied with Mayor-elect Zohran Mamdani’s (D) recent win to relocate to Pennsylvania, highlighting the Commonwealth’s economic strengths, educational institutions, and cultural appeal. The Philadelphia Inquirer has more.