Legislative Updates: A Roundup of State and Local Actions – March 20

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, March 20, 2026.

• Mayor Parker’s FY27 budget proposes more than $1.1 billion in capital investment, prioritizing housing (H.O.M.E.), workforce development, and economic growth, alongside new revenue measures and continued tax reductions (BIRT and Wage Tax). The Chamber will continue working with City Council and the administration to help ensure the final plan strengthens Philadelphia’s economic competitiveness and supports local businesses. 

• City Council’s hearing on workforce development highlighted that Philadelphia’s challenge is less about training capacity and more about aligning workforce systems with job creation requiring stronger employer engagement, regional coordination, and investments that connect residents to quality jobs. Councilmembers recognized the Chamber as a key partner in mobilizing employers and expanding workforce opportunities. 

• Several key recommendations for City Council emerged from the hearing, such as: increase investment in workforce programs, particularly youth employment initiatives, adult literacy, and technical training pathways; expand access to wraparound supports, including stipends, child care, and transportation assistance; and strengthen data tracking and accountability measures to better assess outcomes and return on investment.

• The Senate passed near unanimously SB 1090, the Safeguarding Adolescents from Exploitative Chatbots and Harmful AI Technology (SAFECHAT) Act, legislation establishing safeguards that require AI chatbots to clearly disclose their non-human status to users. Additionally, Governor Shapiro recently announced three key actions: launching an AI Literacy Toolkit, creating an AI Enforcement Task Force, and partnering with the Attorney General’s office to strengthen consumer protections around AI companion bots. 

• Two special elections for the state House were held this week: In the 79th District representing Blair County, Republican Andrea Verobish defeated Democrat Caleb McCoy; and in the 193rd District representing Adams and Cumberland counties, Republican Catherine Wallen defeated Democrat Todd Crawley. 

• The House Energy Committee held a public hearing this week on HB 2223, legislation requiring Advanced Transmission Technologies to be integrated into all new transmission lines within the Public Utility Commission’s jurisdiction; and on HB 2264, requiring electric distribution companies to create virtual power plant programs. 

• Pennsylvania’s private child care industry recovered from a pandemic-era collapse, reaching 46,000 employees in 2025 Q3 – a net gain of 1,900 jobs since 2019. Average weekly wages for child care workers rose 2.5% in 2025, bringing the cumulative increase since 2019 to 37.8% (from $442 to $609 per week).

Mayor Parker’s FY27 Budget Proposal 

On March 12, Mayor Cherelle L. Parker introduced her proposed FY27 budget as part of the administration’s “One Philly, One Future” agenda, outlining investments in economic opportunity, public safety, housing, and neighborhood quality of life. 

The proposal includes more than $1.1 billion in capital investment for FY27. This funding will be combined with federal, state, and private resources to support infrastructure improvements, neighborhood revitalization, and economic development projects throughout Philadelphia. Key elements of the proposal feature ongoing investment in the Mayor’s H.O.M.E. initiative to expand housing supply, workforce development programs, and revitalization of commercial corridors. It also includes preparations for major global events in 2026, like the FIFA World Cup and the nation’s 250th anniversary. 

In addition to these investments, the proposal includes several specific tax and revenue changes. These changes involve a proposed 2% increase to the hotel tax, a 20-cents-per-ride fee on rideshare services like Uber and Lyft, and a new 25-cent-per-order delivery tax on high-volume e-commerce and retail activities. The administration is also sticking to its long-term plan to gradually lower the Business Income and Receipts Tax (BIRT) and Wage Tax, while looking for other revenue sources to support City priorities. 

The Chamber is reviewing the proposal closely and will continue working with City Council and the administration throughout the budget process. The goal is to ensure the final plan strengthens Philadelphia’s economic competitiveness and supports local businesses.             

Hearing Recap: Philadelphia’s Workforce Development Systems 

On March 18, City Council’s Committee on Commerce and Economic Development held a hearing to assess Philadelphia’s workforce development system, identify persistent barriers to employment, and evaluate how workforce and job creation strategies can more effectively reduce poverty and expand economic mobility.  

This hearing was authorized by Resolution No. 260032, introduced by Councilwoman Gilmore Richardson on behalf of Council President Johnson. 

The hearing was framed by Council President Johnson, who emphasized that workforce development remains one of the City’s most critical tools to strengthen the economy and ensure that growth translates into meaningful opportunity for residents. He underscored the importance of connecting Philadelphia residents to quality jobs while addressing systemic barriers that continue to limit participation in the workforce. 

Testimony from the Administration, JEVS Human Services, and Philadelphia Works emphasized a more coordinated, system-wide approach to workforce development aligning education, training, supportive services, and employer demand. 

The Administration, represented by Chief Administrative Officer Camille Duchausee, highlighted efforts to centralize strategy through the City College for Municipal Employment (CCME), strengthened partnerships with the Community College of Philadelphia, and the planned Economic Mobility Cabinet to better align workforce investments with long-term economic growth. 

JEVS Human Services CEO Cynthia Figueroa underscored the scale and impact of nonprofit providers, with programs like Career Connected Learning (C2L), CareerLink, and WorkReady serving thousands annually. Notably, C2L placed approximately 7,000 youth across 550 worksites, distributing $8.7 million in stipends, though demand far exceeded capacity with more than 14,000 applicants. 

Pat Clancy from Philadelphia Works added that while the city’s unemployment rate is around 5%, it masks deeper disconnection in certain neighborhoods. Targeted investments have led to strong outcomes including placements in trades, healthcare, and apprenticeships with 70–75% retention, but challenges like the “benefits cliff” continue to hinder long-term stability. 

Representing some of the city’s workforce providers, Sarah Steltz of the University City District (UCD) Skills Initiative and Sheila Ireland of OIC Philadelphia reinforced the importance of employer-driven models. 

UCD’s “jobs-first” approach, launching training only when hiring demand exists, has achieved approximately 93% placement rates, with more than 90% placement in roles at major job centers like the Navy Yard. 

OIC emphasized that the issue is not worker willingness, but the need for clearer, accessible career pathways, supported by wraparound services and focused on long-term outcomes such as retention and wage growth. 

Economic development partners included Catie Wolfgang of the Philadelphia Research and Policy Initiative at PEW, Nikki Pumphrey of the Chamber of Commerce for Greater Philadelphia, and Jodie Harris of PIDC, who highlighted the need to better align workforce strategies with regional economic growth. 

Pew data showed stagnant middle-wage job growth despite overall employment gains, disproportionately impacting the 64% of Philadelphians without a four-year degree. Regional underperformance in traded sectors has further limited opportunity, with estimates suggesting more than 100,000 additional jobs could have been created if growth matched national trends. 

PIDC reinforced that workforce development must be integrated with economic development, pointing to employer-driven models like the Navy Yard Skills Initiative, which has placed more than 250 residents into jobs averaging $22 per hour. 

The Chamber emphasized that Philadelphia’s challenge is not a lack of training capacity, but insufficient job growth and alignment with employer demand. Testimony highlighted the need for a coordinated regional approach, stronger demand-driven investments, and policy conditions, such as regulatory predictability and improved transportation access, that support business growth and job creation. Councilmembers responded positively, recognizing the Chamber as a key partner in mobilizing employers and expanding workforce opportunities. 

Overall, the hearing highlighted both progress and persistent gaps. Councilmembers stressed the need to scale access, particularly for youth and individuals facing barriers, while addressing system constraints around capacity, funding, and supportive services. There was strong alignment around the need for greater coordination across public, private, and philanthropic stakeholders. 

The discussion also reflected a broader shift in framing workforce development as a core component of regional economic strategy. Testimony emphasized that expanding economic mobility requires both preparing workers and ensuring the availability of quality, family-sustaining jobs—driven by deeper employer engagement, stronger alignment with industry demand, and policies that support long-term economic growth. 

Several key recommendations for City Council emerged: 

• Increase investment in workforce programs, particularly youth employment initiatives, adult literacy, and technical training pathways. 

• Expand access to wraparound supports, including stipends, childcare, and transportation assistance. 

• Strengthen data tracking and accountability measures to better assess outcomes and return on investment. 

• Improve alignment between training programs and employer demand, ensuring clear pathways to quality jobs. 

• Deepen private sector engagement, particularly to expand youth employment opportunities and create more direct connections to careers. 

• Provide greater financial stability for nonprofit workforce providers, including timely payments and sustainable contract structures. 

This hearing reinforced the Chamber’s role as a key connector between the business community, workforce providers, and City leadership. Through continued partnership with public and private stakeholders, the Chamber will support efforts to expand employer participation, strengthen talent pipelines, and align workforce strategies with industry demand, and remain deeply committed to advancing workforce development as a core driver of economic mobility and regional competitiveness. 

City Council Stated Meeting 

There were many bills and resolutions introduced and passed during City Council Stated Meetings since our February 27, 2026 report. You can watch Philadelphia City Council public hearings and Stated Meetings here or access City Council’s Legislative Information Center here. The next Stated Meeting is scheduled for Thursday, March 26. 

Bill No. 260162 (Johnson): Amends Chapter 9-600 of The Philadelphia Code, entitled “Service And Other Businesses,” by adding a new Section 9-631.1 to establish requirements for commercial landlords to take certain remedial action against commercial tenants who engage in tobacco retailing without a required tobacco retailer permit and establishing penalties. (STATUS: INTRODUCED 3/5) 

Resolution No. 260222 (Landau): Authorizing the Committee on Legislative Oversight to hold hearings on the status, operations, and economic impact at the Port of Philadelphia (PhilaPort) to ensure its growth and operations position the City of Philadelphia as a 21st century commerce hub. (STATUS: INTRODUCED 3/12) 

Bill No. 260209 (Johnson): Amends Title 19 of The Philadelphia Code, entitled “Finance, Taxes and Collections,” to add a new Chapter 19-4800, entitled “Retail Delivery Tax,” to establish a tax on orders for the delivery in Philadelphia of retail consumer and other tangible goods. (STATUS: INTRODUCED 3/12) 

Resolution No. 260208 (Johnson): Amends Chapter 19-1800 of The Philadelphia Code, entitled “School Tax Authorization,” to a add a new Section 19-1808, entitled “Authorization of Rideshare Use Tax,” to authorize the Board of the School District of Philadelphia to levy a tax upon the use by a passenger of a transportation network company for a prearranged ride that originates in Philadelphia. (STATUS: INTRODUCED 3/12) 

Resolution No. 260205 (Johnson): Amends Section 19-1806 of The Philadelphia Code, entitled “Authorization of Realty Use and Occupancy Tax,” to clarify the imposition of the tax on the use or occupancy of real estate with respect to cell towers. (STATUS: INTRODUCED 3/12) 

Resolution No. 260204 (Johnson): Amends Title 3 of The Philadelphia Code, entitled “Air Management Code,” to modify the amounts of license and permit fees. (STATUS: INTRODUCED 3/12) 

Resolution No. 260203 (Johnson): Amends Subcode “A” (The Philadelphia Administrative Code) of Title 4 of The Philadelphia Code (The Building, Construction and Occupancy Code), by adding and revising Zoning Board of Adjustment fees and provisions regarding hearing scheduling. (STATUS: INTRODUCED 3/12) 

Bill No. 260241 (Young): Amends Title 9 of The Philadelphia Code, entitled “Regulation of Businesses, Trades and Professions,” and amending Section 14-604 of The Philadelphia Code, entitled “Accessory Uses and Structures,” to provide for notice to owners and residents of a building regarding dwelling units licensed for limited lodging on the property. (STATUS: INTRODUCED 3/19) 

Bill No. 250768 (Gauthier): Amends Title 17 of The Philadelphia Code, entitled “Contracts and Procurement,” to prohibit contractors providing solid waste, recycling, or composting services to the City from incinerating discarded matter. (STATUS: HELD 3/19 – ON SECOND READING AND FINAL PASSAGE) 

Bill No. 250843-AA (Johnson): Amends Chapter 10-700 of the Philadelphia Code, entitled “Refuse and Littering,” to require locking dumpsters. (STATUS: AMENDED ON THE FLOOR & PASSED 3/19) 

Pennsylvania Senate Returns to Harrisburg 

The Pennsylvania Senate returned to session this week for the first time since the Governor's budget address in early February. The House will return next week, when both chambers will meet in shared session, as currently scheduled. Neither chamber is scheduled to reconvene after that until April 13. 

Artificial Intelligence Measure Clears Senate 

The Senate passed near unanimously SB 1090, the Safeguarding Adolescents from Exploitative Chatbots and Harmful AI Technology (SAFECHAT) Act, legislation establishing safeguards that require AI chatbots to clearly disclose their non-human status to users. It is specifically aimed at protecting minors from AI-driven self-harm encouragement or personal exploitation. Whenever high-risk language is detected, the measure requires the chatbots to direct users to appropriate self-harm crisis resources. 

Governor Shapiro and Attorney General Sunday held a roundtable in West Chester with legislators, educators, and parents to highlight the Commonwealth's recent efforts to establish protections from any harmful AI interactions. Last month, the Governor announced three key actions: launching an AI Literacy Toolkit, creating an AI Enforcement Task Force for complaints about AI bots engaging in unlicensed professional practice, and partnering with the Attorney General's office to strengthen consumer protections around AI companion bots. 

House Special Elections 

Two special elections for the state House were held this week. In the 79th District, representing Blair County, Republican Andrea Verobish defeated Democrat Caleb McCoy, holding the seat vacated by Lou Schmitt. In the 193rd District representing Adams and Cumberland counties, Republican Catherine Wallen defeated Democrat Todd Crawley (60% to 40%), holding the seat vacated by Torren Ecker.  

Prior to the special elections this week, House Democrats had easily defended vacant seats in two special elections that cemented their majority control in the chamber. Ana Tiburcio won the 22nd District representing Lehigh County, while Jennifer Mazzocco captured the 42nd District representing Pittsburgh suburbs.  

The House balance currently rests at 102-100.  One remaining special election will be held on May 19 to fill the seat vacated by Republican Seth Grove in the 196th District.   

Energy  

The House Energy Committee held a public hearing this week on HB 2223, legislation requiring Advanced Transmission Technologies (ATTs) to be integrated into all new transmission lines within the Public Utility Commission's jurisdiction; and on HB 2264, legislation requiring electric distribution companies (EDCs) to create virtual power plant programs. The legislation seeks to address rising energy costs across the Commonwealth and the mounting pressure on the state's power grid. 

Pennsylvania is facing a surge in energy demand, driven largely by the expansion of artificial intelligence data centers. Lawmakers and utility experts warn that these facilities can consume as much power as small cities, raising concerns that demand could outpace supply and push up electricity costs for residents. The region's grid operator has reported record demand levels, heightening fears about reliability during peak summer and winter months. 

IFO Report Shows Child Care Industry Growth 

According to a recent Independent Fiscal Office research brief, Pennsylvania's private child care industry recovered from a pandemic-era collapse, reaching 46,000 employees in 2025 Q3 – a net gain of 1,900 jobs since 2019 – though growth has slowed to 1.1% annually. Average weekly wages for child care workers rose 2.5% in 2025, bringing the cumulative increase since 2019 to 37.8% (from $442 to $609 per week), a key driver of the post-pandemic recovery. The industry has been recently supported by several state programs, including Child Care Services, Child Care Assistance, and the Child Care Works Program for low-income families. The Governor has proposed modest increases to all three programs. Additionally, a $25 million Child Care Staff Recruitment and Retention Program was established in FY2025-26 to help hire and keep qualified workers, with $35 million requested this year. 

Market your business: Sponsor one of the Chamber’s advocacy events. Gain exposure and build promising relationships with top-level business professionals, civic leaders, and elected officials. Learn more about our upcoming local, state, and federal advocacy sponsorship opportunities here, or contact Laura Williams, Manager, Member and Investor Relations, at lwilliams@chamberphl.com for more details.

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.