Pennsylvania lawmakers remain at an impasse over the state budget, with the Senate advancing a $47.6 billion spending plan for 2025-26 that maintains current funding levels. The proposal also includes a two-year, $1.2 billion transportation plan aimed at supporting mass transit operations and rural road repairs. However, this measure faces opposition from Senate Democrats.
The transportation funding plan would redirect money from the Public Transportation Trust Fund, which is intended for ongoing and planned capital projects, and would use revenue generated by taxes on interactive gaming. Senate Democrats have voiced concerns that shifting costs to riders could harm agencies like SEPTA and argued that the state should provide direct funding instead. Senate Republicans disagreed with this position.
The Senate’s proposed budget is notably lower than both Governor Josh Shapiro’s suggested $51.5 billion budget and the House’s $50.6 billion spending plan. Disagreements over how to fund mass transit agencies such as SEPTA are contributing to the ongoing eight-week budget stalemate in Harrisburg.
Last week, the House Rule Committee rejected both the budget and transit funding bills passed by the Senate. The next scheduled session for the Senate is not until September 8th.
“NFIB will continue to keep you updated on the budget and other legislation that will impact Main Street,” according to a statement from the National Federation of Independent Business – Pennsylvania.
As lawmakers continue their negotiations, small business advocates are urging constituents to remind legislators not to increase regulations on small businesses during this period of uncertainty.
Governor Shapiro and members of the Pennsylvania House are also advocating for an increase in the minimum wage to $15 per hour, citing rising costs of doing business across the state. Small business owners are being encouraged to communicate with their representatives about their inability to absorb additional wage increases.
Additionally, there is renewed debate over mandating up to 20 weeks of paid family and medical leave for small businesses—a proposal some argue would impose further burdens on employers.
Greg Moreland, State Director for NFIB Pennsylvania, recently appeared on Pennsylvania Newsmakers to discuss these challenges facing small business owners in Pennsylvania.
