On August 5^th, the Pennsylvania Senate advanced a $47.6 billion state budget for 2025-26 that holds spending flat and a two-year $1.2 billion transportation plan, which is opposed by Democrats to fund mass transit operations and repairs to rural roads.

The two-year transportation measure would draw money designated for ongoing and planned transit capital projects in the Public Transportation Trust Fund, as well as revenue from taxing interactive gaming.

Democrats in the Senate argued that increasing rates on riders would be detrimental to SEPTA and that the state needed to fork over the money, not the riders. Senate Republicans disagreed.

The Senate’s budget proposal also falls significantly short of Governor Shapiro’s $51.5 billion budget pitch and the House’s $50.6 billion spending plan. That gap – and discrepancies over funding SEPTA and other Pennsylvania mass transit agencies – likely means that the state’s eight-week budget impasse will continue.

Overall, there is no agreement on the budget or transportation monies. The tone of the debate indicates deep-seated philosophical disagreements on the role, size, and scope of government.

Last week, the House Rule Committee rejected the budget and transit funding bills. The Senate is not due back for session until Sept. 8^th. NFIB will continue to keep you updated on the budget and other legislation that will impact Main Street.

TAKE ACTION: While lawmakers remain deadlocked on the budget, don’t hesitate to remind them not to increase regulations on small businesses.

• Market Should Decide the Wage: Gov. Shapiro & the PA House are calling for a $15 minimum wage in Pennsylvania. The cost of doing business is already rising drastically – tell your legislators you CANNOT afford an increased minimum wage!
• Mandates Hurt Small Businesses: Lawmakers are again considering another requirement for small businesses – 20 weeks of paid family and medical leave. Tell your lawmakers to STOP saddling small businesses with unnecessary burdens like creating a 20-week paid family and medical leave program!

ICYMI: State Director Greg Moreland recently appeared on Pennsylvania Newsmakers to discuss the state of small businesses and what challenges owners are managing. Watch it here!