We’ve pulled the latest from primary sources and trusted industry summaries to keep you and your teams current on what matters in Philadelphia City Hall, Harrisburg, and Washington, D.C. It’s concise by design: quick headlines, why it matters for contractors, and what to do next. Sources are listed at the end for anyone who wants to dig deeper.

What’s new & why it matters 

• SEPTA funding stopgap — Governor approved a $394M capital-to-operations transfer. Service restorations are expected for ~two years, easing commute disruptions for your workforce and jobsites.

• PA budget standoff continues — Competing plans range $47.6B–$51.5B. Expect fits-and-starts appropriations; watch pass-throughs that affect school construction, local gov’t payments, and grant-funded work.

• Data center buildout spotlight — Senate GOP Policy Committee heard testimony on $20B AWS PA investment, grid capacity, water usage, siting, and workforce. Net: large, complex, high-M/E/P projects with union and merit-shop tensions and looming labor shortages (esp. electricians).

• Tax law changes (H.R. 1, signed July 4) — Several pro-investment provisions restored or extended (100% bonus depreciation; expanded §179; strengthened §174/41 R&D; §179D and §45L through 2026; permanent §199A deduction). Cash-flow and bid pricing opportunity—through 2026 in many cases.

• Philadelphia policy watch — Bill #250646 (security officer training) still in committee; may impose mandatory training minimums citywide. Retail theft down ~13% YoY under the city’s public-private strategy; freight/rail thefts under review.

• House Labor & Industry “watch list” — A large package (training-repayment bans, wage enforcement, paid sick leave, misclassification penalties, labor broker registration, etc.). Several would raise compliance and record-keeping expectations for contractors/subs.

Local (Philadelphia)

Security Officer Training – Bill #250646

• Would mandate 40 hours initial + annual refreshers delivered by certified non-profits.

• Impact: Adds vendor oversight and contract language at sites with private security; coordination with GC/owner policies.

• Action: If you operate guarded facilities or staff security, share ops details and cost impacts with the Chamber (contact: Ashley Miscevich, amiscevich@chamberphl.com).

Retail Theft & Supply Chain

• ~13% YoY decline in in-store retail theft; ongoing coordination with PPD and AG.

• Freight/rail theft rising; report disruptions so enforcement can target hot spots.

• Action: Join the Retail Theft Working Group (next virtual meeting Fri, Sept 26, 2025). Contact Ashley above.

City Hall cadence

• Council is back; curfew measures active in targeted districts. Expect continued hearings on safety and workforce bills that can translate into site access, permitting, and compliance changes.

State (Harrisburg)

Budget

• Senate GOP passed a flat $47.6B plan; Governor proposed $51.5B; House Dems backed $50.6B. No deal yet.

• Why you care: Funding delays ripple to transit, schools, municipalities, and human services—all frequent owners or partners in our projects. Cash-flow risk rises for entities relying on state appropriations.

Transit funding & SEPTA

• Multiple House/Senate vehicles advanced this summer; the Governor’s $394M SEPTA transfer averts immediate cuts and fare hikes.

• Contractor take: Stabilizes labor mobility and schedule reliability for the next two fiscal years; longer-term, a sustainable formula remains unresolved.

Data centers hearing (Aug 11, Archbald)
Key signals for our trades:

• Pipeline: Major operators (AWS) telegraph multi-billion-dollar PA investments, with siting interest across NEPA and Central PA.

• Utilities: Grid capacity and new generation (incl. nuclear/SMRs and gas) are gating items; 14.4 GW in PPL’s advanced agreements pipeline noted.

• Water: SRBC/DRBC emphasized withdrawal planning and drought management; towns will scrutinize cooling methods (air/immersion, closed-loop).

• Local control: Municipalities cannot ban data centers but will use zoning, setbacks, noise, light, and water-proof requirements; brownfield reuse favored.

• Workforce: Shortages intensify—expect recruitment beyond PA on peak builds; debate continues on apprenticeship ratios (HB677/SB439) and PLAs.

• What this means for SMCA: Expect large-scale HVAC/sheet metal scopes, mission-critical standards, and long-lead equipment. Early coordination with utilities and AHJs will make or break timelines.

House Labor & Industry “Watch List” (selected)

• SB72 – Misclassification: Higher penalties, private right of action, and mandatory debarment for knowing violators.

• HB899 – Paid Sick Leave: Would impose a statewide paid sick leave mandate.

• HB678 – Labor Broker Registration: New registration, enforcement account, penalties.

• HB715/716/718 – Wage & Enforcement: Tougher penalties, new employer duties, expanded remedies; higher exposure for payroll/record errors.

• HB421 – Training Repayment Agreements (TRAPs): Restrictions that could affect certain employer training recoupment policies.

• HB1255 – Workers’ Rights (Constitutional amendment): Would elevate collective bargaining and workplace rights, altering future policy footing.
  Bottom line: Prepare for more audits, documentation, and wage/notice compliance obligations; revisit subcontracts and HR policies accordingly.

Codes & UCC

• 2021 I-Codes adoption targeted Fall/Winter 2025 sequences; elevator standards updates planned.

• UCC Review & Advisory Council meetings posted; next listed: Jan 8 & Feb 12, 2026 (9 AM).

• Action: Estimating, detailing, and energy-modeling teams should pre-brief on 2021 code deltas (ventilation, envelope, controls) to future-proof bids.

Session schedules

• House: Sept 22–24, 29–30; Oct 1, 6–8, 27–29; Nov 17–19; Dec 8–10, 15–17.

• Senate: Sept 8–10; Oct 20–29; Nov 17–19; Dec 8–10.
  Implication: Expect clustered movement on budget/transit and L&I bills in these windows.

Federal (Washington, D.C.)

Appropriations

• Senate advancing packages; NIH set near-flat at $47.2B in Senate Labor-HHS; House outlook uncertain.

• CR likely ahead of Sept 30 to avoid a shutdown. Owner uncertainty may slow notice-to-proceed on federal/med-research-adjacent work.

H.R. 1 – Tax & Investment Provisions (selected for contractors)

• 100% Bonus Depreciation (retroactivity enabled).

• §179 expensing expanded (up to $2.5M, indexed).

• §179D up to $5.00/sf for energy-efficient commercial work (through 2026).

• §45L credits for efficient resi/multifamily (through 2026).

• §174/174A & §41: Immediate domestic R&D expensing + enhanced credit.

• §199A 20% deduction made permanent (with raised phase-in ranges).

• Estate tax/GST thresholds increased; SALT cap temporarily to $40K (limits apply) until 2030; excess business loss limits made permanent.
  Action: Talk to your CPA about amending 2022–2024 where beneficial, timing equipment buys before 12/31/26, pricing §179D/45L into bids, and documenting process/R&D for shop prefabrication and constructability improvements.

What members should do now

1. Stabilize workforce mobility: Update site start/quit times and crew transit guidance assuming SEPTA service restorations, but keep contingency plans through FY27.

2. Exploit tax windows (thru 2026): Pull forward qualifying capex; model §179D/45L in proposals; evaluate retroactive filings.

3. Pre-position for data centers: Start utility coordination checklists, long-lead equipment logs, water/noise compliance narratives, and mission-critical QA/QC packages.

4. Tighten compliance: Refresh worker classification, wage notices, record-keeping, and subcontract clauses(flow-down wage/enforcement duties).

5. Weigh in: Send feedback on HB #s above to the House L&I Committee; share cost/ops impacts on Phila. Bill #250646 with the Chamber.

References 

1. Philadelphia City Council — Bill 250646 (Security Officer Training), Legistar page. Introduced June 12, 2025. Accessed Sept 18, 2025.

2. Pennsylvania General Assembly — HB 1788 (Transit Funding), bill text & history. Last action Aug 15, 2025. Accessed Sept 18, 2025.

3. Pennsylvania General Assembly — SB 160 (General Appropriations), roll call and history. Senate passage Aug 12, 2025. Accessed Sept 18, 2025.

4. SEPTA — Capital-to-Operations Transfer and service restoration announcement. August 2025. Accessed Sept 18, 2025.

5. PA Bulletin — Department of Labor & Industry Regulatory Agenda, posted July 1, 2025. Accessed Sept 18, 2025.

6. PA Senate Republican Policy Committee — Data Centers Hearing (Archbald): agenda/witness list/testimony, Aug 11, 2025. Accessed Sept 18, 2025.

7. UCC Review & Advisory Council (DLI) — 2026 meeting schedule. Accessed Sept 18, 2025.

8. Congress.gov — H.R. 1 (2025) text and summary. Accessed Sept 18, 2025.

9. U.S. Senate Appropriations Committee — Labor-HHS bill summary (NIH funding). Accessed Sept 18, 2025.

10. Industry analysis: SMACNA of PA — Summary of Legislation, Aug 2025 (overview and commentary). Accessed Sept 18, 2025.

11. Industry analysis: Chamber of Commerce for Greater Philadelphia — Legislative Update, Aug 22, 2025 (round-up and business impacts). Accessed Sept 18, 2025.

Status as of September 18, 2025, 12:00 p.m. ET. This summary is informational and relies on primary sources above; secondary summaries are cited for context only.