Legislative Updates: May Roundup
The following summary is based on the Philadelphia Chamber of Commerce’s May 9 legislative roundup. We’ve reviewed the full set of updates from the local, state, and federal levels and selected the items most relevant to SMCA contractors and industry stakeholders. From tax policy and labor ordinances to infrastructure funding and federal budget shifts, this update is designed to keep you informed on the issues that could impact your business operations and workforce.
Philadelphia: Tax Reform and Employer Regulations
FY26 Budget Negotiations:
Philadelphia is currently negotiating its Fiscal Year 2026 budget. The Chamber of Commerce is advocating for accelerated reductions in the Wage Tax and the Business Income & Receipts Tax (BIRT) to enhance the city's competitiveness and attract investment. The current proposals suggest a gradual reduction, which the Chamber believes is insufficient to meet the urgent economic needs.
P.O.W.E.R. Act Passed:
City Council has passed the P.O.W.E.R. Act, expanding protections for domestic workers. While the Chamber supported amendments to reduce legal uncertainties, concerns remain about increased compliance costs and potential legal risks for employers.
Fair Chance Hiring Law Amendments:
Legislation has been introduced to strengthen the city's Fair Chance Hiring Law, aiming to enhance employment opportunities for individuals with criminal records. Proposed changes include stricter guidelines on the use of criminal history in hiring decisions and expanded applicant protections.
Harrisburg: Budget Talks and Infrastructure Funding
General Assembly Budget Discussions:
The Pennsylvania General Assembly is engaged in budget negotiations, with discussions encompassing mass transit funding, combined reporting, school vouchers, and marijuana legalization.
SEPTA Funding Crisis:
SEPTA faces a significant budget deficit, potentially leading to fare increases and service reductions. The House Transportation Committee has approved legislation to increase funding for mass transit agencies, but further action is required to prevent service disruptions.
PA SITES Program Grants:
The state has awarded $64 million in grants through the PA SITES program to develop shovel-ready industrial sites.Notably, Ensemble/Mosaic received a $30 million grant for the Philadelphia Navy Yard Greenway District, aiming to boost local employment and economic activity.Axios
Washington, D.C.: Federal Budget Proposals
FY2026 Budget Proposal:
President Trump's proposed budget for Fiscal Year 2026 includes a $163 billion reduction in non-defense discretionary spending, affecting programs related to education, public health, and renewable energy. Conversely, the budget proposes a 13% increase in defense spending, raising it to over $1 trillion.
Medicaid Reform Proposal:
House Republicans have introduced a proposal aiming to reduce Medicaid spending by $715 billion over the next decade.The plan includes implementing work requirements and other reforms, potentially impacting millions of Americans.
Climate and Clean Energy Rollbacks:
The House has proposed significant rollbacks of climate and clean energy initiatives established under the Biden administration, including eliminating clean energy tax credits and slashing funds for electric vehicles and renewable energy programs.
For the full report, visit https://chamberphl.com/2025/05/legislative-updates-a-roundup-of-state-and-local-actions-may-9/