Government Affairs Update for September 2026

The past month brought several developments with the potential to impact sheet metal contractors. Pennsylvania's Governor issued new requirements for large data center projects. Congress enacted a housing law with implications for HVAC and mechanical retrofit work. The Federal Reserve raised its benchmark interest rate for the first time since 2023. And SMCA members gathered at The Union League of Philadelphia for the association's Legislative Dinner. Here's a look at the legislative, regulatory, and industry developments shaping the business environment for sheet metal contractors across Pennsylvania, New Jersey, and Delaware.

🤝 Advocacy in Action 

SMCA Legislative Dinner Brings Contractors & Policymakers Together

SMCA members and industry leaders gathered at The Union League of Philadelphia on September 17 for the association's Legislative Dinner, continuing an important tradition of bringing contractors into direct conversation with the policymakers whose decisions affect construction, workforce development and business conditions across the region. The evening opened with a welcome from Executive Director Pete Jenkins, who thanked members and elected officials for joining and framed the evening's advocacy focus. Federal and state advocacy updates were delivered by Stan Kolbe, SMACNA Executive Director of Government and Political Affairs, and John Wanner, Executive Vice President of SMACNA of Pennsylvania. Kolbe addressed federal priorities including IIJA reauthorization and workforce policy. Wanner covered the state picture, including recent progress protecting the Separations Act and priorities heading into fall. Joining members were U.S. Representatives Mary Gay Scanlon and Donald Norcross and Pennsylvania State Senators John Kane and Frank Farry.

The evening was held at The Union League of Philadelphia through the membership of Legislative Committee Chair Dominic Bonitatis.

Pennsylvania: Custom Fabrication and Regional Investment

One of the most immediate issues discussed was Pennsylvania legislation addressing prevailing wage requirements for custom fabrication associated with public projects.

Senator Farry spoke about the Senate’s action on the legislation and the effort to address a competitive gap affecting contractors bidding public work. He also pointed to major investments underway and planned in healthcare, educational facilities, life sciences and other institutional sectors as important drivers of construction activity in Southeastern Pennsylvania.

His remarks reinforced the connection between public policy and project opportunity. Investment in hospitals, schools, research facilities and advanced industries ultimately translates into work for contractors and the skilled workforce they employ.

Federal Issues: Costs, Workforce and Data Centers

At the federal level, discussion ranged from tariffs and material pricing to pensions, apprenticeship and the rapid growth of data centers and AI-related infrastructure.

Congressman Norcross, whose career began in the electrical trades, spoke from the perspective of someone familiar with construction firsthand. His remarks touched on the difficulty contractors face when changing tariffs and material costs reduce predictability, particularly when companies must decide when to purchase equipment or lock in steel and other commodity prices.

He also highlighted the scale of opportunity associated with data-center construction while recognizing the power, water, infrastructure and public-policy questions accompanying that growth.

The discussion repeatedly returned to skilled-trades careers, apprenticeship and the importance of providing young people with pathways into family-sustaining careers outside the traditional four-year college route.

Bringing the Contractor Perspective to Policymakers

For SMCA members, these conversations demonstrate why direct engagement matters. Decisions made in Washington, Harrisburg and local government can influence everything from project pipelines and labor standards to material costs, workforce development and the qualifications required to perform specialized work.

The Legislative Dinner gives members an opportunity to move those conversations beyond policy papers and committee rooms and bring the day-to-day realities of contracting directly to elected officials.

SMCA extends its appreciation to Congresswoman Scanlon, Congressman Norcross, Senator Kane and Senator Farry for spending the evening with members and sharing their perspectives.

The association also thanks Stan Kolbe for his continued leadership on the issues affecting sheet metal contractors nationally and John Wanner for the expertise and advocacy he brings to the industry in Pennsylvania.

SMCA will continue building relationships with government leaders, monitoring the policies affecting contractors and ensuring that the industry’s voice is represented at the local, state and federal levels.

🏛️ Legislative Watch

 Pennsylvania Establishes New Requirements for Large Data-Center Projects 

Governor Josh Shapiro signed an executive order establishing new requirements for data-center developments seeking Commonwealth permits. Under the order, the Pennsylvania Department of Environmental Protection will evaluate applications only after developers have received local approval and made legally binding commitments to meet the state's Responsible Infrastructure Development requirements. These requirements address energy affordability, community engagement, workforce and economic development, transparency and environmental protection. The order also removes artificial-intelligence data-center projects from Pennsylvania's Permit Fast Track Program and prohibits the use of nondisclosure agreements connected to proposed developments.

Why it matters: Data centers represent a potentially significant source of construction activity, including extensive HVAC, ventilation, controls and power-generation work. At the same time, concerns surrounding grid capacity, utility costs, permitting and local approval could affect where projects are built and how quickly they advance. SMCA will continue monitoring these policies and their implications for contractors and future project opportunities. 

 ⚖️ Regulatory Watch

 Philadelphia Fire Life Safety Requirements Highlight the Role of Qualified Contractors

Philadelphia maintains recurring inspection and certification requirements for fire and smoke dampers and smoke-control systems in certain assembly occupancies, healthcare facilities and high-rise shafts. The city's requirements include four-year damper certification cycles, six-year cycles for hospitals, filings with the Department of Licenses and Inspections and reporting of unresolved deficiencies. The work must be performed by qualified sheet metal technicians holding appropriate fire life safety credentials.

Why it matters: Philadelphia's established program demonstrates how inspection requirements, contractor qualifications and enforcement can work together to protect building occupants while creating a clear role for properly trained professionals. Across the country, government policy is moving from general recommendations toward measurable standards, recurring inspections and qualified-personnel requirements — a trend that recognizes what SMCA contractors have long argued: that policies only succeed when the work is performed by trained professionals with the credentials to do it right.

 🏗️ Industry Watch

New Federal Housing Law Could Accelerate HVAC Work

The recently enacted 21st Century ROAD to Housing Act includes reforms intended to reduce regulatory barriers, modernize federal housing programs and accelerate housing construction and rehabilitation. Of particular interest to sheet metal and HVAC contractors, the law streamlines federal environmental-review requirements for certain housing-related activities. These include emergency assistance for homeowners and renters repairing or replacing HVAC systems, water heaters and other essential utilities.

Opportunity for contractors: By reducing administrative delays associated with qualifying federally supported work, the law could help critical mechanical-system repairs and housing rehabilitation projects move forward more quickly. Its effect on actual project activity will depend on how federal agencies implement its provisions. SMACNA is monitoring implementation and the potential opportunities the law may create for HVAC contractors.

Federal Reserve Raises Interest Rates

The Federal Reserve increased its benchmark interest rate by a quarter percentage point on September 16, bringing the target range to 3.75% to 4%.

What we're watching: For the construction industry, higher borrowing costs can affect project financing, development decisions and the timing of capital investments. The increase comes as contractors and owners continue to manage elevated labor, material and equipment costs. The full impact will depend on how long rates remain elevated and how developers, lenders and public-sector owners respond. SMCA will continue watching for signs of delayed projects, changing investment patterns and other effects on construction activity.

👀 On Our Radar 

• Pennsylvania's implementation of its new data-center development requirements 
• Energy reliability, grid capacity and the cost of serving major new electrical loads 
• Federal action on the MOLD Act and stronger indoor-air-quality protections in military housing 
• Interest-rate changes and their effect on construction financing 
• State and local policies involving ventilation, testing and balancing, fire life safety and qualified-workforce requirements 
• Implementation of the 21st Century ROAD to Housing Act and its potential to accelerate federally supported HVAC and housing rehabilitation work

Looking Ahead — And How You Can Engage

Government decisions have a direct effect on project opportunities, labor standards, operating costs and the long-term strength of our industry. SMCA will continue keeping members informed and representing contractor interests at the local, state and federal levels. Members are encouraged to contact SMCA with questions, concerns or information about government actions affecting their businesses. Your on-the-ground experience shapes SMCA's positions with lawmakers.

For More Information

• Pennsylvania Executive Order on Data Center Development 
• 21st Century ROAD to Housing Act 
• Federal Reserve FOMC September 2026 statement — federalreserve.gov/newsevents 
• Philadelphia Department of Licenses and Inspections, Fire Life Safety — phila.gov/departments/li