Legislative Updates: A Roundup of State and Local Actions – April 11

Your Chamber advocacy team is working to share legislative updates and continue to advocate for your business in Washington, D.C., Harrisburg, and Philadelphia. We’ve created a round-up of recent activity, including Key Takeaways for Your Business and a Detailed Legislative Update. This represents our best knowledge of the situation as of 9:00 a.m. on Friday, April 11, 2025.

• Call to Action: The Chamber has serious concerns with the POWER Act bill, a worker protection bill scheduled for a hearing in City Council.
• The Chamber continues to advocate for investments in citywide business and job growth during the FY26 Budget Process.
• Councilmember O’Rourke introduced three bills entitled the “Safe Homes Health Act” to provide rental protections for tenants.

• Southeastern Pennsylvania Transportation Authority (SEPTA) announced plans to increase fares by 21.5% across the system and cut service nearly in half across all modes of transit (regional rail, buses, trolleys, subways).
• This creates a crisis which could result in 75,000 job losses, devastating local businesses, fragmenting neighborhoods, and contracting our regional economy.
• The Chamber urges state lawmakers to take decisive action to enact a dedicated funding solution that will avert these planned fare increases and service cuts.  
• Get Involved:
  • Register for our virtual briefing delivered from SEPTA on its plans on Wednesday, April 23, 2025. Participants will have the opportunity to submit questions on SEPTA’s service plan and timeline.
  • Tell Pennsylvania lawmakers to take action to avoid SEPTA service cuts and fare increases.
  • Sign up to receive updates on transit funding or to play an active role in our advocacy moving forward.
  • Join us in Harrisburg for a planned transit rally on Tuesday, May 13, 2025.
  • Read the latest from Chamber President and Chief Executive Officer Chellie Cameron on why the business community should take action to support SEPTA. 

• The budget resolution has now cleared both chambers, setting the stage for the reconciliation process. The current budget framework paves the way for a tax measure projected to increase the debt by over $5 trillion over the next decade, authorizes a $5 trillion hike to the debt limit, and includes $150 billion in defense and $175 billion in immigration and border security spending. The Chamber is beginning to identify our own appropriations requests for our Greater Philadelphia congressional delegation in the lead-up to FY26 negotiations. Please fill out our member input form or reach out directly to Renee Androckitis (randrockitis@chamberphl.com) to share your appropriations priorities. 
• President Trump announced on Wednesday a baseline 10% tariff on nearly all imported goods, with steep 25% tariffs on autos, steel, aluminum, and certain Canadian and Mexican products. Although Trump issued a 90-day pause on some tariffs to make room for bilateral negotiations, China was not included in the pause and responded by announcing escalating retaliatory tariffs, now at 125% on all U.S. goods.
• Recent information from the Department of Energy shows dramatic funding cuts for the federally supported Hydrogen Hubs program, with only the four projects in primarily Democratic-leaning states are listed as “cut” instead of “keep,” including MACH2, the Mid-Atlantic hub serving Pennsylvania, Delaware, and New Jersey. Our Chamber is in active conversations with the MACH2 team and our partners across the state to alert our congressional delegation to this issue and urge the Administration to reverse this decision.
• Regarding agency activity, a federal judge permanently blocked the Trump administration’s proposed 15% cap on indirect costs for NIH-funded research, ruling it violated appropriations law and failed to follow required procedures; the Education Department released new guidance to help state leaders utilize federal Title I funds to support “educational choice initiatives,” and called on state education officials to guarantee that school districts have eliminated diversity, equity and inclusion initiatives by April 24 or lose Title I funding; and HHS Secretary Robert F. Kennedy Jr. has been invited by Senate HELP leaders to testify in front of their committee about the “dramatic agency overhaul” of the agency.

Join the Chamber of Commerce for Greater Philadelphia and the Allegheny Conference on Community Development as we bring together business and civic leaders from across the state to honor members of the Pennsylvania General Assembly and Shapiro Administration at the Harrisburg Reception on May 5, 2025. Register now.

Join us for a virtual briefing on SEPTA’s $213 million budget deficit and its impact on the economic health of Greater Philadelphia. Hear from SEPTA Interim General Manager Scott Sauer, who will detail the drastic fare increase and service reduction implementation across all transit modes, and representatives from Econsult Solutions, Inc. who will provide an economic impact analysis of this potential crisis. Register now.

The POWER Act

The Chamber has serious concerns with the POWER Act (Bill #250065) in its current form. While we fully support fair workplace standards and the city’s efforts to protect workers’ rights, this legislation significantly exceeds what has been adopted in peer cities and introduces new risks and burdens that would hinder job growth and economic competitiveness in Philadelphia.

Through collaboration with our members, we have identified several key issues in the bill. While a full summary is available in our formal position statement, two primary areas of concern include:

Private Right of Action Without Administrative Oversight: The bill allows employees and third parties, including labor unions, to file lawsuits directly against employers without first seeking resolution through the city’s enforcement agency. This would:

• Increase costly, immediate litigation, even for technical violations.

• Open the door to class action lawsuits and forum-shopping by advocacy groups.

Extended Statute of Limitations and Recordkeeping Requirements: The legislation expands the statute of limitations for filing claims and mandates employers retain employee records for three years, compared to current requirements of one and two years, respectively. This extended liability poses significant administrative and legal burdens, particularly for small businesses.

Additional areas of concern:

• Presumption of Retaliation, which places an undue burden on employees to disprove claims.
• Overbroad Definitions that include information complaints and minor workplace changes as grounds for retaliation.
• A “Bad Actor” Database, which risks reputation harm for minor infractions.
• Immigration-linked Provisions that introduce federal issues into local employment matters.

Since the bill’s introduction, the Chamber has actively convened stakeholders to build a unified response and ensure the business community’s concerns are represented. We have met with members of the Administration, who have expressed general alignment with our position and are engaging the bill sponsor to discuss potential amendments. Our position statement has been submitted to the Committee on Law and Government, and we have circulated proposed amendments that are currently undergoing final review.  

Calls to Action:

• Submit a Letter: We have launched a letter-writing campaign urging City Council to reconsider the bill in its current form. We encourage all stakeholders to sign and share the campaign with their networks.

• Testify at the Hearing: We are actively seeking individuals to testify at the Friday, April 25, 2025, hearing. The Chamber is available to support with message development and coordination.

We remain committed to working collaboratively with City Council and all stakeholders to ensure Philadelphia adopts balanced policies that protect workers without compromising business viability or job creation. To learn more or engage in our efforts, please contact Ashley Miscevich, Manager, Local Government Advocacy at amiscevich@chamberphl.com  

Bills and Resolutions Introduced in Council

Councilmember Thomas introduced a resolution authorizing the Committee on Education to create a task force on the state of higher education.

Councilmember Young introduced a resolution authorizing the establishment of a special committee to reform the use of Act 135. Act 135 was intended to provide a mechanism for neighbors, nonprofit organizations, and municipalities to revitalize abandoned buildings. Some Councilmembers are concerned that it has also unjustly targeted property owners in gentrified neighborhoods.

Councilmember Harrity introduced a resolution authorizing the Special Committee on Kensington to hold hearings on the intersection of substance abuse disorder and homelessness.

Councilmember O’Rourke introduced three bills entitled the “Safe Homes Health Act,” including:

• A bill clarifying licensing requirements for rentals with protections for tenants and tenants’ rights and against breaches of habitability,
• A bill modifying requirements related to good cause for ending a tenancy,
• A bill authorizing the creation of an anti-displacement fund.

Councilmember Bass introduced a resolution authorizing the creation of a Special Committee on child separation practices.

Councilmember Ahmad introduced a resolution authorizing the Committee on Public Health to hold a hearing on the policies of DHS on child welfare protections.

Budget Hearings Recap

The Chamber continues to advocate for investments in citywide business and job growth during the FY26 Budget Process.

Although we are encouraged by the inclusion of wage tax and Business Income and Receipts Tax (BIRT) reductions in the mayor’s proposed budget, we know that more investment is needed on a shorter timeline.

The Chamber has pushed for the elimination of the Net Income portion of the BIRT in five years and reduction of the Wage Tax to a competitive 3% in 10 years.  The Parker Administration’s plan seeks to cut the Net Income of BIRT in half in 15 years and reduce the wage tax over a longer period of time.

Data analysis shows that many employers of all sizes choose to locate outside the city to benefit from lower costs. Currently, over 44% of city residents reverse commute to the suburbs for work.

We must incentivize employers to locate within the city if we want to improve our job growth status.  It seems that everyone from heads of households to heads of companies agrees that more people with good-paying jobs with upward mobility is critical to improving public services.

We ask that you all join the Chamber in advocating for changing Philadelphia’s historical status quo of high business and wage taxes and trying something new to catalyze economic growth that benefits all citizens. 

On Tuesday, April 8, 2025, the Office of Public Safety and Police testified in front of City Council during the FY26 Budget hearings.

• Police Commissioner Kevin Bethel testified that the department is facing a 19% vacancy rate, with about 1,200 officer positions unfilled. Despite several years of recruitment efforts, Bethel admitted that the numbers are improving only incrementally and that it could take “years of momentum” to fully recover from the staffing shortage.
• Council members expressed concerns over the slow recruitment progress, asking why efforts haven’t yielded more officers. Bethel responded that the department is using a variety of strategies to improve hiring, including allowing recruits to retake failed tests. Additionally, Bethel said the department is requesting $350,000 in funding to support its recruitment programs.
• Bethel also addressed questions about the department’s use of technology, such as drones and body-worn cameras. He confirmed that the department plans to expand its drone program, and reassured City Council that all patrol officers now have body cameras. By this summer, three specialized units, including the Narcotics Strike Force, will be outfitted with them.
• On Wednesday, April 9, 2025, the Department of Prisons (PDP) testified during the Budget hearings.
  • Michael Resnick, Commissioner of the Philadelphia Prisons, testified that the PDP’s mission is to ensure secure detention and provide services like job training, education, and health care to incarcerated individuals to support successful reentry into society.
  • In partnership with the Office of Reentry Partnerships, PDP focuses on reducing recidivism through services including: Continuing efforts to hire and retain staff, improving facility security, and increasing out-of-cell time for inmates to access services, enhancing reentry services with a new trailer for community services post-release, and introducing a medical monitoring bracelet for new inmates and body-worn cameras for staff to increase transparency and safety, among others.

Upcoming Budget Hearings

On Thursday, April 10, 2025, from 6:00 -8:00 PM, at Rivera Recreation Center (3201 N. 5^th St), Mayor Parker will be holding a One Philly 2.0 Budget Town Hall to discuss housing, public safety, and economic opportunity.

On Tuesday, April 15, 2025, in Room 400, City Hall, City Council will hear testimony from Planning & Development, Public Property, and Fleet on budget planning for the FY26.

On Wednesday, April 16, 2025, in Room 400, City Hall, City Council will hear testimony from the Free Library, Parks and Recreation, and SEPTA on budget planning for FY26

Upcoming City Council Committee Hearings

On Monday, April 14, 2025, at 10:00 AM, in Room 400, City Hall, the Committee on Rules will hold a Public Hearing to hear testimony on several zoning-related items. The hearing will cover proposed changes to the zoning designations of land in the area bounded by Federal Street, 13th Street, Wharton Street, and Broad Street. It will also address the repeal of several ordinances related to zoning regulations for a proposed arena in Center City, including changes to sign regulations and related development plans. Immediately following the hearing, the Committee will hold a public meeting to consider action on these items.

On Monday, April 14, 2025, at 1:00 PM, at The Museum of the American Revolution, 101 S. 3rd Street, Philadelphia, PA 19106, the Committee on Legislative Oversight of the Council of the City of Philadelphia will hold a Public Hearing to hear testimony on the city’s preparations for the events planned in 2026 to celebrate America’s 250th birthday and Philadelphia’s central role in America’s founding.

The hearing will focus on assessing the current state of the city’s readiness for these events. Immediately following the hearing, the Committee will hold a public meeting to consider action on the item.

Other News

Starting Wednesday, April 16, 2025, the Philadelphia Parking Authority (PPA) and SEPTA will use AI-powered cameras on buses to automatically enforce bus lane violations in Center City. The cameras will track and document vehicles blocking bus lanes or access to bus stops. Fines of $76 will be issued starting May 7, with warnings for the first two weeks.

The program, supported by a 2023 ordinance from Councilmember Mark Squilla, aims to reduce congestion, improve bus travel times, and address delays caused by illegally parked cars, which average 1.7 million hours of delay annually.

Philadelphia has launched a pilot program, FreshStartPHL, to assist eligible renters with up-front costs, by covering three months’ rent and up to $1,000 for moving expenses.

Meanwhile, City Council is considering new legislation to further reduce rental costs by capping application fees at $20 and allowing security deposits to be paid in installments over four months. While the city supports the goal of making up-front costs more manageable, there are concerns about the impact on small landlords, who may face greater risks or higher costs, potentially leading to higher rents or fewer available rental properties.

Mayor Parker has decided to continue funding two key SEPTA fare programs after backlash over proposed budget cuts. The Zero Fare program, which gives about 25,000 low-income Philadelphians free SEPTA access, will be extended through FY26. The Key Advantage program, which provides free transit for around 15,000 city employees, will also continue at full-service levels. This follows criticism from City Council members and transit advocates, including Councilmember Nicolas O’Rourke, who plans to introduce legislation creating a dedicated Philadelphia Transit Access Fund to support Zero Fare long-term.

SEPTA Announces Painful Fare and Service Adjustments

Yesterday, SEPTA announced plans to enact painful fare hikes and service reductions to close its $213 million budget deficit. Without decisive action from our state lawmakers to enact a dedicated transit funding solution, SEPTA will be forced to increase fares across the system by 21.5%, making them among the most expensive in the country. Service would be cut nearly in half across all modes, including the wholesale elimination of five regional rail lines and dozens of bus routes, leaving many without access to employment, education, and healthcare. Frequency on remaining routes would be reduced and concluded daily at 9:00 PM. Once these service cuts are enacted, they are nearly impossible to reverse.

It is projected that this crisis could result in over 75,000 job losses and a $20B loss in household property value in our region, devastating local businesses, fragmenting neighborhoods, and contracting our regional economy. Workers and families will leave Greater Philadelphia for areas with less traffic congestion and more transit-accessible options. Employers will struggle to hire before ultimately taking those unfilled jobs out of the region.

House Democrats released a statement highlighting how they have passed legislation to fund SEPTA and mass transit systems three times in the last legislative session without concurrence in the Senate. They continued that they “are ready to do the right thing again.” House leadership is reportedly planning to run another transit bill next month.

Meanwhile, Senate Republican leadership acknowledged that SEPTA has “demonstrated a degree of progress with riders paying a fairer share and implementation of greater efficiencies,” but that it should also “come to the table with a more modest transit funding request.”  Republican leadership also attempted to point out that any failure to pass additional transit funding through a budget agreement is equally the responsibility of the Governor.

It is time for lawmakers to act before these plans begin to take hold in August 2025. We need your voice to help secure the future and prosperity of Greater Philadelphia: 

Register for our virtual briefing delivered from SEPTA on its plans on Wednesday, April 23, 2025. Participants will have the opportunity to submit questions on SEPTA’s service plan and timeline. 

• Tell Pennsylvania lawmakers to take action to avoid SEPTA service cuts and fare increases. 

• Sign up to receive updates on transit funding or to play an active role in our advocacy moving forward. 

• Join us in Harrisburg for a planned transit rally on Tuesday, May 13, 2025. 

These plans would lead to massive drops in ridership and the dismantlement of our transit system after generations of investment. The consequences would hurt our communities, widen social disparities, and reverse years of economic progress. It’s time for Greater Philadelphia’s business community to sound the alarm on an impending economic emergency.

Following a packed three-week session, Congress has adjourned for a two-week Easter/Passover recess and is scheduled to return on Monday, April 28, 2025, at which point both chambers are expected to focus intensively on reconciliation in order to pass the bill by Memorial Day.

Budget Resolution passes both chambers, gives way to reconciliation process 

The budget resolution has now cleared both chambers, setting the stage for the reconciliation process. The Senate narrowly passed its version early Saturday morning with a 51-48 vote, proceeding without a formal ruling from the Senate parliamentarian on whether the chamber was permitted to use the current policy baseline instead of current law baseline. Senate Majority Leader John Thune asserted that Senate Budget Committee Chair Lindsey Graham could set the baseline instead. The nonpartisan Committee for a Responsible Federal Budget released an analysis stating that the Senate budget bill would add $5.8 trillion to the deficit through 2034 if acted upon via the upcoming reconciliation bill.

The House followed suit this week, passing its resolution 216-214 after a delayed vote and tense negotiations between House leadership and fiscal conservative among the rank-and-file membership. As the key remaining differences between the chambers focuses on the House’s calls for much deeper spending cuts at $1.5 trillion than the Senate’s of $3 billion, Speaker Johnson promised skeptics that if he was unable to meet their demands for cuts, they could force a vote to remove him from his leadership position.

The current budget framework paves the way for a tax measure projected to increase the debt by over $5 trillion over the next decade, authorizes a $5 trillion hike to the debt limit, and includes $150 billion in defense and $175 billion in immigration and border security spending. Instructions also currently call for the House Energy & Commerce Committee to cut $880 billion in spending, causing internal divisions among House Republican leadership, with moderates warning they won’t support reductions that threaten coverage.

The House Energy & Commerce Committee has stated it could meet its $880 billion in required cuts without targeting Medicaid, though options are limited. The Congressional Budget Office (CBO) issued a response to House Budget Committee Ranking Member Brendan Boyle and House Energy & Commerce Committee Ranking Member Frank Pallone to provide projections of mandatory spending for the 2025-2034 period. The CBO identified Medicaid, CHIP, the risk adjustment program, and the Universal Service Fund are the largest programs under the jurisdiction of the Energy & Commerce committee and therefore, could also be targeted for cuts.

In Pennsylvania, which has 3.5 million Medicaid enrollees—including 750,000 covered through expansion—proposed funding caps could reduce federal funding by billions, straining health systems statewide and impacting vulnerable populations, especially in cities with dense Medicaid populations, like Philadelphia. Congressman Boyle has introduced legislation that would block Medicaid and SNAP cuts from being enacted through reconciliation.

Fiscal hawks and moderate Republicans will also find themselves on different sides of debates on other key issues in addition to Medicaid funding, including tax cuts, military spending, energy policy and tax credits, border security and funding, and more. To minimize the effects of these differences, House GOP leaders are encouraging House committees to work closely with their Senate counterparts during the markup process, though the dates to begin that process are yet to be decided.

In the meantime, the Chamber is beginning to identify our own appropriations requests for our Greater Philadelphia congressional delegation in the lead-up to FY26 negotiations. Please fill out our member input form or reach out directly to Renee Androckitis (randrockitis@chamberphl.com) to share your appropriations priorities.  

Trump tariff decisions spark fear of international trade war and domestic recession

President Trump announced on Wednesday a baseline 10% tariff on nearly all imported goods, with steep 25% tariffs on autos, steel, aluminum, and certain Canadian and Mexican products. These moves caused significant volatility in markets both globally and domestically, with severe fluctuations in the Dow Industrial Index, S&P 500, and Nasdaq.

Although Trump issued a 90-day pause on some tariffs to make room for bilateral negotiations, China was not included in the pause and responded by announcing escalating retaliatory tariffs, now at 125% on all U.S. goods. Other countries, including EU nations, are also considering countermeasures. Notably, there are over 70 bilateral trade deals to reach, which historically take years, not days, to complete, within this pause. Semiconductors and pharmaceuticals are expected to be the next target of the Trump tariffs. While semiconductors remain technically exempt under the White House’s reciprocal tariff model, Taiwan – the world’s leading producer of semiconductor materials – is already facing a 32% tariff. Items used to power telecommunications, including routers, modems, and antennas, may also see price increases as most of these materials are imported from abroad.

Members of both parties have introduced legislation to curb presidential authority over trade, but the administration has threatened to veto such measures, arguing they infringe on national security powers. Representative Don Bacon introduced a bill in the House that would “reclaim Congress’ authority over tariffs and limit presidential power over trade”, mirroring a bill led by Senator Chuck Grassley in the Senate. The Administration has already stated that they would veto the bill as an encroachment on the President’s powers related to national emergencies and security.

Hydrogen Hubs and LIHEAP at the center of departmental shifts 

Recent information from the Department of Energy shows dramatic funding cuts for the federally supported Hydrogen Hubs program. Out of the list of seven projects, only the four projects in primarily Democratic-leaning states are listed as “cut” instead of “keep”, including MACH2, the Mid-Atlantic hub serving Pennsylvania, Delaware, and New Jersey. Our Chamber is in active conversations with the MACH2 team and our partners across the state to alert our congressional delegation to this issue and urge the Administration to reverse this decision.

Meanwhile, the Department of Health and Human Services abruptly terminated all federal staff administering the Low Income Home Energy Assistance Program (LIHEAP), putting remaining FY25 funds in limbo. The LIHEAP program provides approximately $4 billion annually in funding assistance for heating and cooling bills across the country. While most of Pennsylvania’s LIHEAP funds have been disbursed, uncertainty around long-term program administration remains with a lack of clarity on how funds can be deployed effectively without staff to support the disbursement.

Other items of interest

• A federal judge permanently blocked the Trump administration’s proposed 15% cap on indirect costs for NIH-funded research, ruling it violated appropriations law and failed to follow required procedures. This permanent injunction, issued after a request by the Trump Administration for a final judgment in the case, will now lead to an appeals process. The Chamber continues to advocate against the implementation of this cap, which threatens the region’s innovation capacity and economic growth. We’ve launched a multi-pronged campaign, commissioning an economic impact analysis with Econsult Solutions, developing messaging aligned with audience interests, and convening partners. As we escalate advocacy efforts through coalition building, public education, and direct engagement with lawmakers, we continue to elevate the voice of our life sciences and higher ed communities.  

• The Education Department released new guidance to help state leaders utilize federal Title I funds to support “educational choice initiatives,” signaling a continued emphasis on parental oversight in education. In additional guidance from the department, the Administration calls on state education officials to sign a certification letter that guarantees that school districts have eliminated diversity, equity,and inclusion initiatives by Thursday, April 24, 2025, or lose Title I funding.

• HHS Secretary Robert F. Kennedy Jr. has been invited by Senate HELP leaders to testify in front of their committee about the “dramatic agency overhaul taking place under his leadership”, including his comments that some of the 10,000 jobs cut were a mistake. Meanwhile, Dr. Oz was confirmed by the Senate to lead CMS.

ChamberPHL Political Action Committee
Help us advance the business community’s agenda by contributing to support state and local candidates in key elections who share our commitment to a healthier business climate.

We invite you to reach out to our advocacy team directly with your questions:

• Shannon Williams, Senior Vice President, Advocacy – swilliams@chamberphl.com
• Renee Androckitis, Federal and State Affairs – randrockitis@chamberphl.com
• Anselm Sauter, State Affairs – asauter@chamberphl.com
• Ashley Miscevich, Local Affairs – amiscevich@chamberphl.com

Chamber members are invited to join weekly legislative update calls hosted by our advocacy team to hear the latest legislative matters concerning our community.