Legislative Updates: A Roundup of State and Local Actions – May 9

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, May 9, 2025.

• Philadelphia is at a crossroads. If we want a stronger, more competitive future, we must act now. The City's FY26 budget is being negotiated – this is our last chance to advocate for meaningful reductions to the Wage and BIRT taxes. Use this form to sign up and receive action instructions. 

• City Council passed the P.O.W.E.R. Act, sponsored by Councilmember Kendra Brooks. The Chamber actively engaged in the legislative process, advocating for amendments to reduce legal uncertainty and mitigate unintended consequences for employers. 

• Last week, Councilmember Landau introduced legislation to strengthen Philadelphia's Fair Chance Hiring Law by narrowing how employers can use criminal history, expanding applicant protections, and introducing a private right of action. The Chamber is actively engaging with stakeholders and the bill sponsor to assess potential impacts and ensure employer concerns are heard. 

• The General Assembly returned to Harrisburg unleashing a flurry of bills, positioning many hot button issues for budget negotiations in June, including mass transit funding, combined reporting, school vouchers, marijuana legalization, election reforms, and many others. 

• Ther Performance-Based Funding Council unanimously adopted a report and recommendations on creating a performance-based funding model for new funding for Penn State University, the University of Pittsburgh, and Temple University. 

• The Governor announced PA SITES program recipients, including Ensemble/Mosaic which received a $30M grant to develop the Philadelphia Navy Yard Greenway District. 

• On Friday, May 2, 2025, President Trump released a proposal of recommendations on FY 2026 discretionary funding levels that cuts the country's overall non-defense spending down by 23% ($163 billion dollars) to $557 billion. While a fully detailed version of President Trump's proposal is expected later in May, the current table of recommended discretionary spending levels by agency and program name can be found here. 

• Most House committees have completed markups per reconciliation instructions, with significant funding cuts across social, education, and regulatory programs and increased defense and border security spending; three major markups – which will tackle Medicaid, SALT caps, and a tax package – are still pending. The Senate's response remains unclear, and the Senate Parliamentarian's review under the Byrd Rule could limit what provisions can be enacted via reconciliation. 

• The U.S. and UK announced a bilateral deal including a flat 10% tariff on UK imports and the lifting of key sector tariffs. Domestically, new tariffs on auto parts and the end of the de minimis exemption for Chinese goods may raise costs for consumers and small businesses. 

Join us to rally for Pennsylvania transportation funding in Harrisburg alongside SEPTA, the Transport Workers Union, and WURD Radio at the Pennsylvania State Capitol rotunda at 11:00 a.m. on Tuesday, May 13, 2025.

FY26 Budget Tax Reform 

The Chamber remains focused on securing meaningful tax reform to grow jobs and attract investment as part of the FY26 Budget process. 

While we’re encouraged by Mayor Parker’s proposal to reduce the Wage Tax and Business Income & Receipts Tax (BIRT), the pace of change must accelerate to meet the urgent needs of Philadelphia’s economy. 

The Chamber has long advocated for eliminating the Net Income portion of the BIRT within five years and lowering the Wage Tax to 3% over the next decade. The current proposal would only reduce BIRT’s Net Income share by half in 15 years and phase in Wage Tax cuts over an even longer timeline. 

Boosting private-sector job creation is key to improving quality of life, expanding opportunity, and funding the services our communities rely on. That’s why it’s time to leave behind the status quo and adopt a more competitive tax structure that positions Philadelphia for long-term growth. 

Your support is needed now more than ever as we approach the final weeks of budget negotiations. We urge our members to show up and speak out next week – this is a critical moment. 

• Sign our petition letter to show broad support from the business community. 

• Attend Council budget hearings next week to make your voice heard and stand up for growth. 

Philadelphia is at a crossroads. If we want a stronger, more competitive future, we must act now. Use this form to sign up and receive instructions on the actions you need to take. 

POWER Act 

On Thursday, May 8, 2025, City Council passed the POWER Act (Bill #260065). Sponsored by Councilmember Kendra Brooks, this legislation does not just expand protections for domestic workers – it includes several provisions that significantly increase legal exposure, compliance costs, and reputational risks for employers of all sizes. It goes well beyond what peer cities have adopted and represents the first legislation of its kind in the U.S. 

The Chamber testified, alongside Chamber members (Pennsylvania Restaurant and Lodging Association and the Greater Philadelphia Hotel Association), at the April 25, 2025, hearing. While several of our amendments were adopted, the final version of the bill remains unfairly imbalanced – placing disproportionate burdens on businesses, increasing liabilities, and limiting opportunities for resolution. 

While the Chamber supports fair workplace standards and worker protections, we continue to advocate for a more balanced framework that upholds those protections without jeopardizing jobs or employers. We are calling on City Council to convene a task force – comprised of business and labor – to conduct a comprehensive review of the City’s worker protection ordinances. By developing a more equitable, practical, and enforceable approach, we can protect workers while preserving Philadelphia’s competitiveness as a vibrant, business-friendly city. 

Fair Chance Hiring Bill 

On April 24, 2025, Councilmember Rue Landau introduced Bill #250373, which amends the city’s Fair Chance Hiring Law, originally enacted in 2011. These provisions aim to enhance employment opportunities for individuals with criminal records by addressing existing loopholes and strengthening enforcement mechanisms.  

Key Provisions of the Proposed Amendments: 

• Comprehensive Application of the Law: The amendments clarify that the Fair Chance Hiring Law applies to all uses of criminal history information, regardless of how the employer obtains it, including public records, third-party services, or PennDOT Driver Records.  

• Individualized Assessment Requirements: Employers would be mandated to conduct individualized assessments of an applicant’s criminal history, ensuring that any rejection is based on a specific risk related to the job’s duties. Employers must also provide a detailed written explanation of their assessment and consider evidence of rehabilitation presented by the applicant.  

• Revision of Conviction Consideration Timeframes: The period during which employers can consider old misdemeanor convictions would be reduced from seven years to three years post-arrest or release. Additionally, the law prohibits the consideration of summary offense convictions in employment decisions.

• Enhanced Applicant Notification: Applicants must be informed if their criminal history is being considered in employment decisions and provided with information about their rights under the Fair Chance Hiring Law, including how to submit evidence or explanations directly to the employer. The legislation also extends the applicants time to respond to a decision from 10 days to 15.
• Expands Private Right of Action: Individuals who believe their rights under the law have been violated would have the option to file a lawsuit directly, bypassing the Philadelphia Commission on Human Relations (PCHR). The PCHR would also be authorized to award liquidated damages to affected individuals.

• Protection Against Retaliation: The amendments introduce a rebuttable presumption of retaliation if an adverse employment action occurs within 90 days of an individual exercising their rights under the Fair Chance Hiring Law.

The Chamber supports fair chance hiring practices that expand access to employment and promote second chances for justice-impacted individuals. To ensure the long-term success of fair-chance hiring practices and their expanded implementation, it is essential that any changes to the law are thoughtfully crafted to avoid unintended burdens or liabilities for well-intentioned employers. We are currently reviewing the legislation’s potential impact and working to develop a formal position. Member feedback is encouraged as we shape our response. Please reach out to Ashley Miscevich (amiscevich@chamberphl.com) with questions or feedback. 

City Council Stated Meetings: Bills and Resolutions 

On Thursday, May 1, 2025, Council President Kenyatta Johnson introduced Resolution #250445, and subsequently adopted, congratulating the School District of Philadelphia (Chamber member), HRP Group (Chamber member), ARCO Design-Build, Clayco Corporation, and the General Building Contractors Association (Chamber member) for their partnership to fund driver education courses and junior driver’s permits for Career and Technical Education (CTE) students. The initiative supports over 200 students in construction-related programs by helping them meet transportation requirements for employment opportunities in fields like equipment operation, fieldwork, and apprenticeships, ultimately reducing barriers to family-sustaining careers. 

On Thursday, May 1, 2025, Resolution #250396, introduced by Council President Johnson, was passed. This resolution urges the Pennsylvania General Assembly to pass legislation allowing cities of the first class to raise the minimum wage to $15 an hour. Citing the city’s high cost of living, deep poverty, and lack of local authority to set wages, the resolution argues that enabling wage-setting at the local level is essential to promoting economic mobility and ensuring residents can keep up with rising expenses. It emphasizes that more than 60 cities and counties across the U.S. already have this authority and that Philadelphia’s lack of wage-setting power hampers its ability to meet the needs of its constituents. 

Although the Chamber has not shared a position on Resolution #250396, the Chamber does support raising the minimum wage to $15 an hour as a critical step toward economic stability and workforce retention – ensuring that workers across our region can support themselves and contribute meaningfully to a thriving, competitive economy. 

On Thursday, May 1, 2025, Resolution #250455, introduced by Councilmember Young, was passed. This resolution authorizes the City Council’s Committee on Commerce and Economic Development to hold hearings investigating the Administration’s progress on establishing the Philadelphia Public Financial Authority (PPFA).  

What is PPFA? The Philadelphia Public Financial Authority was authorized by City Council legislation in March 2022 (Bill No. 210956-A) as an independent public authority designed to serve as a steppingstone toward a municipal public bank. Because Pennsylvania law does not currently permit municipalities to operate full public banks, the PPFA was structured to legally and operationally prepare the groundwork for such an institution by providing some of the key services a municipal bank would offer. The PPFA’s primary goal is to expand access to capital for small businesses, particularly those that are historically marginalized, underbanked, or excluded from traditional financial systems. 

On Thursday, May 8, 2025, Councilmember Katherine Gilmore-Richardson introduced Bill #250487, authorizing the Procurement Department to enter into an agreement with the Philadelphia Energy Authority (PEA) for the purchase of electricity. This ordinance was introduced to authorize the City of Philadelphia to enter into a long-term agreement with the Philadelphia Energy Authority for the purchase of solar electricity from Abes Run Solar, LLC, in support of the City’s goal to use 100% renewable electricity by 2030. Through a competitive procurement process, this agreement enables the City to secure a dedicated supply of clean energy for municipal operations, advancing its sustainability and climate commitments while leveraging the Philadelphia Energy Authority’s contracting authority. 

On Thursday, May 9, 2025, Bill #250151, introduced by Councilmember Cindy Bass, entitled “Responsible Business Operations,” to add the sale of tobacco in violation to the list of nuisance behaviors was passed. This bill adds the illegal sale of tobacco products in violation of Pennsylvania law (18 Pa. C.S. § 6305) to the list of activities considered public nuisances. 

On Thursday, May 9, 2025, Bill #240665-AA, introduced by Councilmember Quetcy Lozada, passed the amendment to Title 10 of The Philadelphia Code, entitled “Regulation of Individual Conduct and Activity,” by adding a new chapter concerning vehicular mobile service providers, and providing for penalties. The bill aims to address quality-of-life concerns in areas like Kensington, where residents have raised issues about unregulated operations contributing to disorder. It followed a lengthy and contentious deliberation process, with public opinion split, even among Kensington residents. Councilmembers Landau, Brooks, and O’Rourke voted against the bill. 

On Thursday, May 8, 2025, Councilmember Lozada introduced Resolution #250502, and subsequently adopted, authorizing the Special Committee on Kensington to hold a hearing to examine how chronic trauma from exposure to the opioid crisis impacts children’s emotional, mental, and behavioral health in Kensington. The resolution was introduced to address the profound and multifaceted impact of the opioid crisis on children in Philadelphia’s Kensington neighborhood. With a significant portion of the local population under the age of 18, the resolution recognizes that ongoing exposure to trauma – both in the community and at home – has led to serious mental health and developmental challenges for youth. It calls for a public hearing to examine these effects and to identify tools, services, and programs that can better support children affected by chronic trauma stemming from the opioid epidemic. 

FY26 Budget Update 

During the Tuesday, April 29, 2025, budget hearing, Mayor Parker announced that the city will maintain its current contribution to Philadelphia School District at 56% of property tax revenue, despite calls from Councilmembers and the School District for increased support. The District faces a projected $2 billion deficit over the next five years and plans to use $300 million in reserves next year to avoid staffing and program cuts. 

The mayor also announced an expansion of her “extended-day, extended-year” initiative, which provides before- and after-school care and summer programming. Starting this Fall, the program will grow from 25 to 40 schools, with services delivered by external providers. 

On Tuesday, May 6, 2025, the Sheriff’s Department testified during their budget hearing. Sheriff Rochelle Bilal’s request for a new headquarters and training academy was presented during a City Council budget hearing. During this hearing, Sheriff Bilal proposed a nearly $20 million increase to her existing $34 million budget. The additional funds would support the hiring of approximately 130 new deputies and the establishment of a local training academy. Despite the proposed expansion, Council President Johnson expressed concerns about the department’s current staffing challenges, as they have over 100 existing vacancies. He requested that they fill these vacancies before considering additional funding for new positions. 

Housing Opportunities Made Easy (H.O.M.E.) Initiative 

On Wednesday, May 7, 2025, Councilmembers continued their scrutiny of Mayor Parker’s $2 billion Housing Opportunities Made Easy (H.O.M.E.) initiative, which proposes borrowing $800 million to create and preserve 30,000 housing units. Introduced in February as a centerpiece of the mayor’s housing agenda, the administration is urging Council to approve the plan alongside the budget by July 1, 2025. 

During the budget hearing, Councilmember O’Rourke raised concerns about the accelerated timeline, calling for a more deliberate process that allows for deeper community engagement and greater oversight. Councilmember Gauthier also questioned whether the proposed $39.4 million allocation for the Basic Systems Repair Program (BSRP) would be sufficient, especially if income eligibility is expanded to serve households earning up to 100% of the area median income. 

The administration defended the urgency, citing Philadelphia’s aging housing stock and economic pressures on residents. Tiffany Thurman, Mayor Parker’s Chief of Staff, emphasized that delays could worsen the housing crisis. 

While the city plans to finance the initiative primarily through $800 million in bonds – which would cost taxpayers roughly $1.3 billion with interest over 20 years – the total $2 billion estimate also includes $1 billion in mostly vacant city-owned land and $200 million from federal and local funding sources, including the housing trust fund. 

The Mayor’s Office is expected to introduce a legislative package to authorize the borrowing and implementation of the plan in early May. Council President Johnson confirmed that administration officials will be required to return for further testimony during the “department callback” phase of budget hearings. No date has been set. 

The Chamber supports addressing legislation that implements exclusionary zoning, limits construction, and physically separates residents from employment. Allowing for denser, more diverse development that increases housing accessibility  directly impacts workforce stability and economic mobility across the region. A strong, sustainable housing market is essential to attracting and retaining talent, ensuring that workers at all income levels can afford to live in the communities where they work. 

Upcoming FY26 Budget Hearings 

On Tuesday, May 13, 2025, and Wednesday, May 14, 2025, from 10:00 am to 12:30 pm and 1:30 pm to 4:00 pm, City Council will hold public hearings to consider ordinances related to the FY2026 operating and capital budgets, tax rate revisions, parking meter fees, housing trust funding, the elimination of certain tax exemptions, and the revised Five-Year Financial Plan. To learn more about the FY26 Budget, please visit City Council’s Budget Center here. 

On Thursday, May 15, 2025, from 6: 00 pm to 8:00 pm, the mayor will hold a Budget Townhall in the 6th district. This will be located at CityReach Church, 6814 Torresdale Ave., Philadelphia, PA 19135. You can view the full schedule of upcoming Townhalls here. 

General Assembly Returns to Harrisburg 

The General Assembly returned to Harrisburg for the first of two weeks of shared session days in May. Lawmakers advanced a flurry of bills to position many issues for budget negotiations in June.  The Governor has proposed a $51.4 billion budget for FY 2025-26, $3.5 billion higher than the current budget and higher than revenue forecasts for next year. 

 To close this deficit, the Governor proposed transferring from the state Rainy Day Fund and generating new revenue from the regulation and taxation of skilled game terminals and adult-use cannibals.   

 Multimodal Transportation in Talks, Mass Transit Funding Bill Approved in House 

The House Transportation Committee approved House Bill 1364, legislation increasing funding for mass transit agencies across Pennsylvania. Two Republicans joined all Democrats in support of the legislation. 

The move comes shortly after 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% and cut service by 45%, including the wholesale elimination of five regional rail lines and dozens of bus routes, instituting a daily curfew of 9:00 PM.  SEPTA's proposed budget is projected to cost the region more than 75,000 lost jobs.   

Other proposals to address transit budget shortfalls include public-private partnership requirement and additional funding to the Governor's proposal including imposing fees on rideshare companies, car rentals, and car leases. Similar memos imposing fees were circulated in the Senate. 

Senate Republicans reiterated their call for greater efficiencies from SEPTA and increased investment from its ridership before they will consider a more modest transit funding request that is coupled with broader transportation infrastructure investments. At an economic development press conference earlier this week, the Governor said, "right now we are actually working together in a bipartisan fashion to have a big infrastructure bill that can pass both the House and Senate that includes investing in mass transit and investing in roads and bridges." 

Tell Pennsylvania lawmakers to take action to avoid SEPTA service cuts and fare increases. Please go to chamberphl.com/savesepta for ongoing transit funding updates. 

Bill To Remove State Police from Motor License Fund Advanced 

The House Transportation Committee unanimously approved House Bill 1085, legislation accelerating the elimination of State Police funding from the Motor License Fund. The legislation establishes a final $125 million appropriation in fiscal year 2025-2026, with funding completely phased out by 2026-2027. 

This timeline significantly outpaces Governor's budget proposal, which called for reducing State Police reliance on transportation funds by only $50 million annually until complete elimination in fiscal year 2029-2030. By expediting this transition, House Bill 1085 aims to maximize infrastructure funding availability sooner. 

Combined Reporting Introduced 

Senate Democrats introduced Senate Bill 656, legislation enacting mandatory unitary combined reporting in Pennsylvania. The Governor had proposed in his budget accelerating the corporate net income tax scheduled phasedown together with combined reporting. SB 656 enacts combined reporting, but does not accelerate the CNIT phasedown. The Senate Finance Committee had previously approved Senate Bill 207, legislation that would dramatically reduce Pennsylvania's corporate net income tax (CNIT) rate from 7.99 percent to 4 percent, effective January 1, 2026. The Chamber supports calls for an accelerated phasedown of the CNIT but opposes combined reporting. 

School Voucher Bill Approved 

By a vote of 8-3, the Senate Education Committee approved Senate Bill 10, legislation creating the Pennsylvania Award for Student Success Scholarship Program (PASS) to provide eligible students in low-performing school districts with vouchers attend a school of their choice. Often referred to as lifeline scholarships, the Governor's line-item veto of the provision from a previous budget agreement led to a months-long budget impasse. Once a proponent of lifeline scholarships, the Governor reportedly has no position on Senate Bill 10.  

The House Committee Approves Tax Credit Changes  

The House Finance Committee approved along party lines House Bill 500, legislation revamping the underutilized Pennsylvania Economic Development for a Growing Economy (EDGE) manufacturing tax credit. Currently, the EDGE tax credit offers tax credits for clean hydrogen hubs, semiconductor manufacturing, dairy processing, biomedical manufacturing, and sustainable aviation fuel. House Bill 500 expands eligibility and lowers thresholds for the credit while also incorporating the Governor's "Lightening Plan," which calls for the creation of a new Reliable Energy Investment Tax Credit to encourage the development of baseload power and allow existing facilities to invest in upgrades to quickly surge their capacity to meet the growing need for energy. 

House Passes Cannabis Legalization Legislation 

Along party lines, the House passed HB 1200, legislation legalizing recreational marijuana in Pennsylvania. The bill was introduced over the weekend and quickly brought for a floor vote in a matter of days. Republicans decried the bill saying that no hearing on this bill was held and that legalization was a gateway to wider substance abuse. Some Senators have called the bill "DOA" or dead on arrival, especially because the bill requires the state-owned liquor store system to regulate how marijuana would be produced and sold. 

House Committee Approves Election Bills 

The House State Government Committee approved two pieces of election reform legislation. 

House Bill 1396 would introduce several measures designed to modernize Pennsylvania's election process. The legislation proposes establishing early in-person voting, authorizing the use of secure drop boxes for collecting mail-in ballots, and allowing counties to begin processing and counting mail-in ballots prior to Election Day. 

The committee also approved House Bill 771, which would implement stricter voter identification requirements by mandating that voters present valid identification at polling locations. The measure secured bipartisan support, with two Democrats joining all Republicans in voting for approval. Committee Chair Carol Hill-Evans called the bill for a vote despite opposing the legislation. 

Performance-Based Funding Council Issues Recommendations 

The Performance-Based Funding Council unanimously adopted a report and recommendations on creating a performance-based funding model for new funding for Penn State University, the University of Pittsburgh, and Temple University. According to the report, the council recommended making itself permanent to oversee a new performance-based funding model starting in FY 2026-27, which would allocate resources based on weighted student counts (including factors like Pell-eligible students and high-priority degrees) and evaluate universities on metrics such as graduation rates, affordability, and improvement. The recommendations require approval in the General Assembly to take effect. 

DCED Announces First PA SITES Grant Awards 

The Governor announced this week that the Commonwealth is investing $64 million in 11 projects as part of the PA SITES (Pennsylvania Strategic Investments to Enhance Sites) program to build shovel-ready industrial sites across the Commonwealth in order to attract businesses, investment, and jobs to Pennsylvania. In southeastern Pennsylvania, Ensemble/Mosaic received a $30M grant to develop the Philadelphia Navy Yard Greenway District; and Crownwood Condo 4 LLC received a $2M grant for site preparation for a 100,000 square foot industrial facility in Bucks County. 

Pennsylvania Revenue Collections Currently Exceeding Estimate 

Pennsylvania collected $6.2 billion in General Fund revenue in April, which was $363.2 million, or 6.2 percent, more than anticipated. Fiscal year-to-date General Fund collections total $39.4 billion, which is $328.8 million, or 0.8 percent, above estimate.  

2026 Spending: Appropriations & Trump's Skinny Budget  

On Friday, May 2, 2025, President Trump released a proposal of recommendations on FY 2026 discretionary funding levels that cuts the country's overall non-defense spending down by 23% ($163 billion dollars) to $557 billion.  

A letter from the Office of Management and Budget Director Russell Voght to Senate Appropriations Chair Susan Collins provided an overview of the discretionary requests, which include:  

• Cuts to the Department of Health & Human Services that include $18 billion in cuts from the National Institutes of Health, $3.6 billion in cuts to Centers for Disease Control & Prevention programs, $674 million in cuts to Centers for Medicare and Medicaid Services Program Management, and $4 billion from the Low Income Home Energy Assistance Program, which the administration deems as "unnecessary" and "effectively… a pass-through benefiting utilities in the Northeast."  

• $12 billion in cuts for the Department of Education, consolidation of competitive and formula programs within the department, eliminating Adult Education state grants, and consolidation of workforce development programs into one "Make America Skilled Again" grant, and a 26.2% cut to the Senate's Health, Education, Labor & Pensions committee from $127B in FY2025 to $93.8B in FY2026.  

• Eliminating Inflation Reduction Act activities designated for outreach and education, cuts to conservation efforts, and defunding "environmental justice grants" from the Environmental Protection Agency.

• Sharp increases in funding for the Department of Homeland Security (by 65%), including funds for border security, defense, air and rail safety, and law enforcement, and a 13% increase in funding for the Department of Defense, boosting national security funding from $829.3B to just over $1 trillion.  

While a fully detailed version of President Trump's proposal is expected later in May, the current table of recommended discretionary spending levels by agency and program name can be found here.  

While the proposal formally kicks off Congress's appropriations process, the divisiveness of some of these proposals have already led some to speculate another continuing resolution come Tuesday, September 30, 2025 instead of a full slate of complete appropriations.  

Reconciliation Markups are underway, with three key committees holding out until next week 

The House of Representatives has made significant strides to markup packages that either increase or decrease their overall funding based on the reconciliation instructions finalized in early April.  

• The House Armed Services Committee markup was held on Tuesday, April 29, 2025, with instructions to add at least $100 billion in spending. As one of the few committees instructed to increase their spend, the Armed Services Committee is calling for $150 billion in new defense spending, with $33.7 billion proposed for ship building, $25 billion for a missile defense program, and $13 billion for a nuclear arsenal.  

• The House Education & Workforce Committee instructions called for at least $330 billion in cuts. The Tuesday, April 29, 2025, markup included an expansion of the Pell Grant program to  include short-term training, boosts funding, and limits eligibility to "high-quality" programs. Other provisions in the markup, however, would limit access for low and middle income learners through implementing restrictions on student aid, loan caps, and institutional penalty systems.  

• The House Financial Services Committee markup was held on Wednesday, April 30, 2025. Reconciliation instructions called for $1 billion in cuts, but the Committee provided over $5 billion in cuts by implementing severe cuts to the Public Company Accounting Oversight Board and implementing 60% funding cuts for the Consumer Financial Protection Bureau.  

• The House Homeland Security Committee held their markup on Tuesday, April 29, 2025 to identify $90 billion in new funding. Though the committee only reached about $69 billion in funding, the markup includes $46.5 billion of the funds targeted for construction of border barriers through September 2029, $5 billion for Customs and Border Protection, and over $800 million for border patrol vehicles.  

• The House Judiciary Committee, with instructions to increase their spending by $110 billion, held their markup on April 30, 2025. Their plan to move antitrust control from the Federal Trade Commission to the Department of Justice via reconciliation was stymied, though Judiciary Committee Chair Jim Jordan announced his intentions to continue this push in a standalone bill down the line.  

• The House Natural Resources Committee had instructions to cut $1 billion in spending per reconciliation. Their Tuesday, May 6, 2025, markup resulted in cuts close to $17 billion by tackling clean energy grant programs and mandating sales of federal lands and waters.  

• The House Oversight & Government Reform Committee conducted their markup on Wednesday, April 30, 2025, to cut $50 billion in funding.  

• The House Transportation & Infrastructure Committee instructions called for $10 billion in cuts, though the Wednesday, April 30, 2025, markup only had a tally of $8 billion. The markup calls for a new annual fee of $200 on electric vehicles and $100 on hybrid vehicles resulting in an estimated total of over $38 billion (over 10 years) to be deposited into the Highway Trust Fund. An initial proposal of $20 fees on most other vehicles was cut from the markup, ultimately resulting in lower funding for air traffic control modernization.  

The three remaining committees will hold their markups on Tuesday, May 13, 2025, though they are not expected to move through the House rapidly or without serious debate. 

• The House Ways & Means Committee has been instructed to spend $4.5 trillion. The full list of potential revenue raisers include controversial decisions related to higher education, Medicaid, and Medicare can be found here. One of the most serious conflicts House Republican leaders are trying to solve is deciding on a cap for state and local tax (SALT). Speaker Johnson announced this week that he was considering raising the current $10,000 cap to $30,000 in an attempt to appeal to blue-state Republicans, however the core group of New York representatives said this increase fell short of their expectations. Additional dynamics include a new tax rate of 39.5% on individuals earning more than $2.5 million annually and married couples earning more than $5 million annually – a proposal Trump floated to Johnson earlier this week, which the Speaker has previously opposed. President Trump and House Ways & Means Chairman Jason Smith will meet on Friday, May 9, 2025, leaving room for other divisive issues to rise to the top before the Tuesday, May 13, 2025, markup.   

• The House Energy & Commerce Committee has been instructed to find $880 billion in spending cuts. With the committee's jurisdiction over Medicaid and the lingering disagreements, amendments, and revenue generator suggestions, some warn their Tuesday, May 13, 2025, markup may last 24 hours or more.  Many moderate House Republicans have drawn a hard line, committing to opposing a reconciliation package that includes massive cuts to Medicaid and favoring additional eligibility requirements and screenings instead. There has also been a memo released with polling from battleground districts, that shows voter sentiment related to cutting federal Medicaid support. As a swing state, several Pennsylvania districts are included in the memo and aggregated results.   

• The House Agriculture Committee has been instructed to find $230 billion in spending cuts and will also convene for markups on Tuesday, May 13, 2025. Some House Republican leaders are seeking to include $60 billion in farm programs. This would serve as an alternative for the traditional farm bill that failed to pass in the last legislative session, allowing Republicans to avoid partisan disagreements with House Democrats, though Senators have warned that these proposals may not be permissible in reconciliation packages due to the Byrd Rule.  

While the House has made progress on its markups, it remains to be seen how those plans will be received in the Senate—both by Senators themselves and by the Senate Parliamentarian, who determines whether the provisions comply with the Byrd Rule governing what provisions can be enacted via reconciliation. 

First Bilateral Tariff Deal Announced with United Kingdom  

On Friday, May 9, 2025, the White House announced a framework for a trade deal with the United Kingdom. Under the agreement, all UK imports will be subject to a new flat 10% tariff. However, Britain will be allowed to export up to 100,000 cars annually to the U.S. at that rate, compared to the current 25% tariff on autos. Tariffs on British steel will be eliminated entirely. In return, the UK will lift tariffs on U.S. goods including beef, ethanol, and sports equipment, and will commit to purchasing $10 billion in Boeing aircraft. The U.S. is also pursuing a trade agreement with Israel, though details are currently limited.  

Domestically, several key tariff changes took effect in early May. The expiration of the "de minimis" exemption means goods imported from China valued under $800 are now subject to tariffs, potentially increasing consumer prices on a wide range of everyday products. Additionally, a new 25% tariff on auto parts went into effect, separate from existing tariffs on imported vehicles. Analysts estimate this could increase the cost of U.S.-assembled cars by $2,000–$4,000, with some projections as high as $15,000 per vehicle depending on supply chains. Small businesses are expected to be disproportionately impacted due to their limited ability to absorb or offset these cost increases. 

Additional Items of Interest:  

• New Bipartisan House Caucus: House Democrats have announced the formation of the Build America Caucus, a bipartisan group focused on reducing regulatory barriers to energy permitting and housing development. The caucus plans to offer legislative recommendations, including potential provisions in must-pass bills such as the annual defense authorization package.  

• Child and Family Policy Grants Under Review: The Department of Health and Human Services (HHS) has listed over 150 research and policy grants for possible cancellation, including those related to child care, child development, and the Temporary Assistance for Needy Families (TANF) program. While no total cut figure was provided, only 21 out of the 177 listed grants were marked to "continue" and the affected office administered $154 million in grants and contracts in FY2024.  

• On Monday, May 12, 2025, President Trump is expected to sign an executive order advancing a "most favored nation" pricing model for select drugs under Medicare. The move is likely to trigger pushback from the pharmaceutical industry, which has vocally opposed the policy and argues that it would severely undermine their drug development capabilities and efforts. 

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.