Pennsylvania
Governor Shapiro and Treasurer Garrity Agree to Televised Debate
Democratic Governor Josh Shapiro and Republican State Treasurer Stacy Garrity have agreed to participate in an exclusive, prime-time gubernatorial debate on October 7. Hosted by Nexstar Media Inc. at the abc27 studio in Harrisburg, the debate will be moderated by Dennis Owens and broadcast across Nexstar television stations serving Pennsylvania, as well as streamed online via smart television apps and YouTube. This event marks the first televised debate between candidates for Pennsylvania governor since 2018, as no debate occurred during the 2022 election cycle.
Chobani Announces $1.2B Manufacturing Plant
Chobani is investing $1.2 billion to establish its first dairy product manufacturing operation in Pennsylvania by taking over a 1.5 million-square-foot Keurig Dr Pepper facility in the Lehigh Valley. The project, which marks the largest private investment in the state’s agriculture history, is expected to create 900 full-time jobs and process over three billion pounds of milk annually once production begins in 2027. The expansion follows Keurig Dr Pepper’s $925 million sale of its minority stake back to Chobani ahead of a corporate split. To support the initiative and accommodate the unprecedented increase in dairy demand, the commonwealth is providing $50 million in infrastructure grants and loans, utilizing an expedited permitting process, and allocating $127 million in financial support directly to eligible Pennsylvania dairy farmers.
PA Joins FTC Lawsuit Against Amazon
Pennsylvania Attorney General Dave Sunday has joined the Federal Trade Commission and 21 other state attorneys general in a federal lawsuit accusing Amazon of utilizing an artificial bidding scheme to inflate digital advertising costs for independent sellers. The complaint alleges that over the past seven years, Amazon employed an invented auction participant to drive up the prices of sponsored product spots beyond genuine market competition, effectively overcharging advertisers and subsequently passing those inflated costs onto consumers. The bipartisan coalition is seeking an injunction, civil penalties, and restitution for the more than 14,000 independent sellers in Pennsylvania impacted by the practice, while Amazon has denied the allegations and argued that the lawsuit fundamentally misunderstands its advertising operations.
Bipartisan Support to Ban Automated License Plate Readers
Democratic Governor Josh Shapiro and Republican State Treasurer Stacy Garrity have both expressed support for banning Flock cameras and similar automated license plate reading systems in Pennsylvania, citing privacy concerns and government overreach. In response to the growing deployment of these surveillance tools, state lawmakers from both parties are drafting multiple legislative proposals that range from complete statewide bans to targeted regulations designed to restrict routine data collection while preserving access for specific, authorized criminal investigations. While the surveillance company maintains its systems significantly aid in clearing cases, Governor Shapiro confirmed that state agencies, including the Pennsylvania State Police and the Department of Transportation, currently prohibit the cameras on state property as the technology faces escalating scrutiny nationwide.
PA Mails Medicaid Work Requirement Notices
The Pennsylvania Department of Human Services has begun mailing formal notices to more than 700,000 residents enrolled in the Medicaid expansion program to alert them of new federal work requirements set to take effect on January 1, 2027. Mandated by federal legislation passed last year, the new rules will require non-exempt adults ages 19 to 64 to prove they work, volunteer, attend school, or participate in job training for at least 80 hours per month to maintain their health insurance coverage. In Philadelphia, where approximately 183,000 individuals are affected, city officials are collaborating with local nonprofits, health care providers, and community centers to amplify awareness and ensure residents update their contact information on the state’s MYCOMPASS PA app, while preparing support services to mitigate potential strains on emergency departments and public health centers if widespread coverage losses occur.
PA Lawmaker Proposes Skill Games Regulation
With a mid-October deadline looming for Pennsylvania to legalize and regulate up to 100,000 skill games before they face removal, State Representative Russ Diamond (R-102) has proposed legislation that would authorize the machines while overhauling the commonwealth’s entire gaming tax structure. The bill would restrict skill games to establishments with liquor licenses, impose a 20 percent tax, and designate the Pennsylvania Gaming Control Board as the regulator, a provision the skill game industry strongly opposes. Additionally, the legislation seeks to pool all state gaming revenues and allocate 79 percent toward property tax relief, which could provide an estimated $702 annual dividend to homeowners. Despite the potential financial incentives, some Capitol insiders remain skeptical about the feasibility of passing such a comprehensive gaming overhaul before the tight deadline.
August 2026 Revenue Collections Reported
The Pennsylvania Department of Revenue reported that the commonwealth collected $3 billion in General Fund revenue in August, falling slightly short of state budgetary estimates by $21.6 million, or 0.7 percent. According to Revenue Secretary Pat Browne, the performance saw all tax types within expected ranges alongside positive year-over-year growth, led by $1.3 billion in sales tax ($4.2 million above estimate), $1.2 billion in personal income tax ($17.5 million above estimate), $171.6 million in inheritance tax ($18.1 million above estimate), $143.1 million in other General Fund taxes ($0.1 million below estimate), $89.2 million in corporation tax ($4.7 million below estimate), $62.9 million in realty transfer tax ($1.7 million below estimate), and $17.5 million in non-tax revenue ($54.8 million below estimate), while the Motor License Fund received $280.6 million ($9.3 million below estimate). Click here for the full release.
Philadelphia
SEPTA Receives Rail Replacement Grant
SEPTA has been awarded a $13.3 million federal grant to begin replacing its aging Regional Rail fleet, which was temporarily pulled from service last year following a series of fires and safety inspections. While the funding from the Federal Transit Administration covers only a fraction of the estimated $2 billion needed to replace the entire 234-car fleet built in the mid-1970s, it provides the initial capital to begin procuring the modernized “Silverliner VI” models. Because the new rail cars will take five to seven years to manufacture and deliver once contracts are awarded, SEPTA is currently mitigating vehicle shortages by leasing 10 coach cars from Maryland’s commuter rail system and has purchased 24 additional cars from Montreal’s transit network to fill upcoming service gaps.
Burlington Relocates Headquarters to Philadelphia
National clothing retailer Burlington is relocating its corporate headquarters to the Schuylkill Yards development in Philadelphia, a $370 million transition expected to create at least 2,000 jobs over the next five years. To facilitate the move to the newly purchased property at 3151 Market Street, the company will receive nearly $40 million in government incentives, including $30 million in state grants and a $7 million forgivable loan from the city, alongside additional tax credits and commuter transit discounts. Company executives cited outgrowing their current facilities and productive economic development discussions with local leaders as key factors in their decision, while Governor Josh Shapiro and Mayor Cherelle Parker both praised the relocation as a major economic victory and a significant vote of confidence in the city’s business environment.
Pittsburgh
Mayor O’Connor Warns of Severe City Budget Deficit
Pittsburgh Mayor Corey O’Connor is warning that the city faces a dire $250 million budget deficit over the next five years, accusing former Mayor Ed Gainey’s administration of utilizing “false projections” that consistently underestimated operating costs and overestimated revenues. With the September 30 deadline to submit his first preliminary budget quickly approaching, Mayor O’Connor stated that the fiscal reality, exacerbated by inflation, rising utility bills, and unbudgeted contracts, is significantly bleaker than previously anticipated. Despite recent property tax increases, ongoing efforts to streamline permitting for development, and approximately $70 million in recent nonprofit contributions, the city still expects a $30 million shortfall this year. Administration officials indicated they will need to scrutinize every line item, potentially leaving municipal vacancies unfilled and reevaluating non-essential services, to stabilize Pittsburgh’s finances without compromising core operations like emergency response and sanitation.
Federal
HHS Directs CDC to Exclude PA Measles Deaths
U.S. Health and Human Services Secretary Robert F. Kennedy Jr. directed the Centers for Disease Control and Prevention (CDC) to remove two Pennsylvania fatalities from its national measles tally due to questions over whether the disease contributed to the deaths. CDC Director Erica Schwartz implemented the request, which followed a public dispute between Secretary Kennedy and Pennsylvania Governor Josh Shapiro regarding the state’s outbreak response and vaccine safety. While Pennsylvania officials maintain they submitted all required epidemiological data and are legally prohibited from sharing personally identifiable health records, federal health officials stated that additional details are necessary to resolve conflicting reports. Public health experts characterized the federal agency’s decision to publicly question a state health department’s determination as highly unusual, resulting in the CDC updating its website to note that available information does not yet establish measles as the cause of the two deaths.
Whistleblower Flags Rushed USPS Voting System
A whistleblower disclosure released by Senator Richard Blumenthal (D-CT) alleges that the United States Postal Service (USPS) is hastily developing an error-prone computer portal to comply with President Donald Trump’s executive order regarding mail-in voting. The complaint contends that the system, which requires states to submit verified voter lists, was rushed over three months and includes a strict protocol where a single scanning error could cause an entire batch of ballots to be discarded. While the Postal Service and the White House defend the project as a standard software development aimed at ensuring secure elections, critics warn the untested system could prevent millions of ballots from reaching voters ahead of the midterm elections. The mandatory implementation of the new rules remains temporarily blocked by a federal judge, though the agency is permitted to continue developing the tool for voluntary use as the broader legal dispute continues.
Senator Fetterman Aligns with President Trump on Data Centers
U.S. Senator John Fetterman (D-PA) has expressed agreement with President Donald Trump’s push to expand data center development across the country, arguing that the United States must defeat China in the global race for artificial intelligence supremacy. Despite substantial public opposition, with recent polling indicating that a majority of Pennsylvanians, particularly Democrats, oppose such construction, and contrasting positions from fellow Democratic leaders like Governor Josh Shapiro, Senator Fetterman maintains that foreign misinformation is deliberately fueling the domestic backlash against the industry.
Representative Thompson Seeks Waiver for Agriculture Committee Role
House Agriculture Committee Chairman G.T. Thompson (R-PA-15) has formally requested a waiver from Republican leadership to continue serving as the panel’s top Republican next year, despite reaching the party’s three-term limit for committee leadership. In his appeal to the GOP steering committee, the Pennsylvania representative highlighted his legislative record since taking the position in 2021, which includes successfully advancing a comprehensive farm bill, overhauling nutrition programs, and championing a bipartisan expansion of the H-2A agricultural visa program. The waiver request is expected to spark a leadership contest, as Representative Austin Scott (R-GA-8) has already expressed interest to party leaders about succeeding Representative Thompson. On the Democratic side of the committee, Representative Shontel Brown (D-OH-11) and other members are vying to replace outgoing Ranking Member Angie Craig next year (D-MN-2).