PennsylvaniaHB 4162025-2026 Regular SessionHouseWALLET

An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, providing for Child Care Staff Recruitment and Retention Program; in 911 Emergency Communication Services, further providing for surcharge; in Department of Revenue, further providing for exclusion from classes of income and providing for research and experimental expenditures and qualified production property, for report to General Assembly and for interest expense; in joint underwriting association, further providing for findings and for definitions, repealing provisions relating to sunset and providing for risk-based capital certification, for fund transfers, for association oversight and additional * * *

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Bill Overview

Analyzed Economic Effects

125 provisions identified: 98 benefits, 11 costs, 16 mixed.

Medicaid premium rules for disabled workers

Human Services can adjust the premium percentage for workers with disabilities receiving Medical Assistance, alongside the monthly premium. Any adjustment requires approval from the federal Centers for Medicare and Medicaid Services. Workers who fail to make required payments lose Medical Assistance coverage. The law does not set a new premium amount or adjustment date.

Assessment board members receive set payments

State Sexual Offenders Assessment Board members receive $500 for each assessment under either of two covered Crimes Code provisions. Total pay depends on the number of assessments they conduct.

Disaster help for households and communities

The law funds disaster registration, case management, temporary housing, home repairs, and immediate serious-needs assistance. Households can receive one serious-needs payment per disaster after a verified damage assessment and review under state emergency agency rules. Households that received insurance or other compensation cannot receive that payment; its amount is not stated. Counties and municipalities also receive help restoring public infrastructure, removing debris, and taking emergency protective measures. Local costs must relate to an emergency or declared disaster, meet agency eligibility rules, and lack insurance or other compensation.

Food access funding and SNAP grocery incentives

The law directs $5 million from farmers market food coupon funding to reduce food waste and strengthen food access programs. It also allocates $2 million from that funding for SNAP incentive program administration and program costs. The incentive helps SNAP participants buy fruits and vegetables at eligible food retailers. The law does not set an incentive amount for each participant.

Disaster repair aid and larger transfers

State grants can help directly affected people and local governments repair primary homes, personal property, and public facilities after qualifying disasters. Covered damage must not qualify for federal assistance. Disaster-area reimbursement requires either no presidential declaration covering the area or a department finding of a public safety emergency. After declaring a disaster emergency, the Governor can transfer unused General Fund operating appropriations for agency disaster relief. The annual limit without further legislative action rises from $20 million to $40 million; larger transfers still require lawmakers' action.

Hiring and retention bonuses for childcare workers

The law creates annual payments to eligible child care providers for staff hiring and retention bonuses. Qualified staff must directly supervise children. Retention funding comes first, with at least $450 allocated per qualified staff member; remaining money supports recruitment based on provider type and licensed capacity. Providers must be certified, operating, and have a state child care subsidy agreement when applying. Providers under fraud investigation, with Commonwealth liens, revoked, denied, or nonrenewed compliance certificates, or provisional certificates cannot qualify. Providers must apply within 45 days after the application form is posted. Money must be spent that fiscal year and cannot replace existing wage, bonus, or benefit funding. The Department of Human Services can recover misused money and must report annually by September 15.

Refundable state tax credit for workers

Beginning January 1, 2025, eligible taxpayers get a Pennsylvania credit worth 10% of their federal Earned Income Tax Credit. They must claim the federal credit for the same year and claim the state credit on their Pennsylvania return. The state refunds any credit left after state income taxes are covered. For spouses filing jointly federally but separately for Pennsylvania, only the spouse with the greater state tax otherwise due can claim it.

Succession planning grants for preserved farms

The Agriculture Department can use up to $165,000 from the Agricultural Conservation Easement Purchase Fund for farm succession planning grants. Each grant can reach $5,000. Grants support continued farming on land subject to agricultural conservation easements. The department must set eligibility criteria in consultation with the State Agricultural Land Preservation Board.

Carbon trading rules end for businesses

The law repeals Pennsylvania's CO2 Budget Trading Program regulations. Entities previously covered are no longer subject to that program. The provision does not establish replacement rules or quantify changes in emissions or household energy costs.

Stronger checks on utility demand forecasts

Pennsylvania's utility regulator must review utility demand forecasts used by PJM, the regional grid operator, to plan electricity capacity. Reviews cover forecast data, large-load requests, project likelihood, and customers' financial commitments; short-term and day-ahead forecasts are excluded. Utilities must provide relevant contracts and related records when requested, with confidentiality protections for regulator and designated advocacy-office reviews. The regulator must coordinate with PJM and other states to reduce double counting and report annually by June 30. The law does not set household electricity bills.

Medical liability funds support state spending

The medical liability Joint Underwriting Association must transfer $100 million to the General Fund within 30 days of this rule's effective date. This payment is additional to another required transfer. Lawmakers can appropriate the money to Human Services for payments to Medical Assistance health plans. Beginning June 1, 2026, the Insurance Commissioner must report annually when the prior year's risk-based capital ratio exceeded 1,000%, identifying any amount available for further transfer. Further transfers cannot exceed that amount, threaten solvency, or have pushed the prior year's ratio below 1,000%.

State funding for the unemployment system

For the fiscal year beginning July 1, 2025, the law sets a $104.354 million unemployment compensation fund deposit. This supports Pennsylvania's unemployment system. It does not change individual benefit amounts or eligibility.

Limits on Medicaid additions and transportation spending

Human Services needs legislative approval to add nonmedically necessary Medical Assistance services requiring a supplemental appropriation. Proposed services must appear in the Governor's budget or written updates to lawmakers. Department appropriations cannot pay the costs of adding those services. Medical Assistance transportation appropriations can pay only as a last resort for eligible recipients. The transportation rule does not itself create a new recipient payment.

Local property tax breaks face limits

Local revitalization property tax exemptions cannot last more than 20 years in second-class counties or second-class cities. In first-class cities, the same ceiling applies to improvements that turn deteriorated property into residential housing. Affected owners lose the exemption when its approved term ends.

Budget gains interest, skips reserve deposit

The state must move $100 million in special-fund interest to the General Fund for fiscal year 2026-2027. Starting December 1, 2026, annual reviews assess up to $100 million for the following year, with certifications due December 31. Transfers cannot threaten fund solvency or violate federal law. A designated statutory fund and accounts supporting environmental protection or conservation programs are excluded. The law also bars depositing any fiscal year 2024-2025 General Fund surplus into the state's budget reserve.

Lottery Fund gains annual gaming transfer

Beginning in fiscal year 2025-2026, the state must transfer $91 million each year from the specified interactive-gaming account. The money goes to the Pennsylvania Lottery Fund, reducing money held in the source account. The provision does not change individual benefit amounts or eligibility.

State shifts money between major funds

During fiscal year 2025-2026, $670 million must move from available special funds and restricted accounts into Pennsylvania's General Fund. The fund established under section 1701-A is excluded from those transfers. A separate $100 million moves from the Medical Marijuana Program Fund to the State Lottery Fund. Receiving funds gain resources while source funds lose the transferred money. These provisions do not specify resulting changes to household taxes, benefits, or services.

Athletes with intellectual disabilities receive support

The law directs $1 million to regional athletic competitions and activities. This includes an annual statewide competition serving about 2,000 athletes with intellectual disabilities from across Pennsylvania. The statewide competition must be held in a fourth-class county.

Traffic convictions avoid one specific fee

One specified fee does not apply to convictions or guilty pleas based on traffic citations for summary offenses. The exemption covers offenses under state law or local ordinances. It does not remove every fee associated with a traffic case, and the provision does not state the fee amount.

Help paying high school equivalency costs

The law directs at least $1.05 million from adult and family literacy funds to a high school equivalency testing subsidy program. You must meet Pennsylvania Department of Education requirements. Your test must lead to a Commonwealth secondary school diploma credential. The law does not set the subsidy per person or test.

Tax-free reparations for Holocaust survivors

Holocaust survivors do not pay Pennsylvania personal income tax on amounts received as Holocaust reparations. The law does not specify a payment cap or sunset for this exclusion.

Technology and cybersecurity help for small businesses

The law directs at least $1.9 million from economic development operating funds to manufacturing technology and small-business cybersecurity help. The funding also supports testing rare-earth metal extraction from coal ash refuse for domestic chip manufacturing. That testing must occur in a fourth-class county with 130,000–135,000 people in the latest federal decennial census. The law does not set an assistance amount for each business.

Boat funding can support fishing activities

The Fish and Boat Commission can use Boat Fund money for fish and fishing expenses when those activities benefit boats and boating. This permits spending otherwise barred by the existing restriction. The law sets no funding amount and provides no direct payment to boaters or anglers.

Child abuse investigators receive enforcement funding

The law directs $500,000 to a statewide child predator unit. Another $500,000 funds training and equipment to improve identification, investigation, and prosecution of child sexual abuse offenses. Both allocations come from the Pennsylvania Commission on Crime and Delinquency appropriation.

Disaster reimbursements gain limited transfer authority

After a constitutionally authorized disaster proclamation, the Governor can move unused General Fund operating appropriations to state agencies for eligible reimbursements. Reimbursements must be authorized by state emergency-management law and applicable regulations. Transfers cannot exceed $5 million per fiscal year unless the General Assembly acts. This does not create direct household payments.

Firefighters and rescue teams gain support

Up to $6 million can support a qualifying urban search and rescue task force's sponsoring agency. The team must belong to a regional counterterrorism task force covering a second-class county. Money must fund equipment, storage, and training to meet or exceed federal Type 3 task force minimums. The law also funds a statewide fire recruitment and retention coordinator and regional technical advisors. They provide training and technical help to local fire organizations and governments; no funding amount is stated.

Funding for rescue dog training

The law directs search and rescue funding to programs that train working service dogs. The training must focus on rescue and public safety. No specific funding amount is stated.

Grants support statewide help referral system

The law allocates $750,000 for grants supporting the statewide 2-1-1 information and referral system. The money supports organizations carrying out the system, not direct household payments.

Human oversight required for agency transcripts

Executive branch agencies cannot use appropriated stenography money for administrative hearing transcripts made solely by artificial intelligence without a human stenographer present. The stenographer can attend in person or virtually. The restriction applies to covered agency spending, not all uses of artificial intelligence.

Independent prison monitoring receives state funding

At least $2 million goes to the nonprofit designated by state law to monitor correctional institutions. It independently collects and analyzes information about conditions in state and county facilities. It also helps incarcerated people address health, safety, and dignity concerns.

Local firearm task forces receive funding

The law directs $8.431 million to the Attorney General and a first-class city's district attorney for a joint firearm task force. The district attorney's share cannot exceed 20%. A separate $3.110308 million goes to the Attorney General for a first-class-city firearm task force. Another $1.537952 million funds a firearm task force in a second-class county. The Attorney General also receives $889,692 for joint task force operating and property costs, as needed.

Pilot funds dedicated federal firearm prosecutors

At least $3 million helps Philadelphia and a qualifying second-class A home rule county hire additional assistant district attorneys. Through Project Safe Neighborhoods, a United States Attorney's Office must designate these attorneys as special United States attorneys. They must exclusively prosecute federal offenses under 18 U.S.C. § 922(g).

Police and crime labs gain grants

The state crime commission can use designated Medical Marijuana Act money for police department and accredited forensic crime laboratory grants. Recipients must show a need tied to enforcing that law and providing crime-victim services. The provision does not state grant amounts.

Police receive incident data-sharing system funding

The law directs $400,000 from the Pennsylvania Commission on Crime and Delinquency appropriation to a police data-sharing index. The system lets participating law enforcement agencies access incident report data.

Protected funding for crime victim notifications

The Pennsylvania Commission on Crime and Delinquency must maintain support for the Statewide Automated Victim Information and Notification System. Funding must be at least the amount used in fiscal year 2014–2015. The system provides offender information and notifications through county jails. The law does not state the funding amount.

Protected funding for youth violence prevention

The law preserves at least fiscal year 2014–2015 funding for a residential treatment community facility serving at-risk youth in a fifth-class county. It also preserves that year's funding floor for violence and delinquency prevention in a second-class city. Blueprint mentoring programs addressing youth violence in first-, second-, and third-class cities also retain at least their fiscal year 2014–2015 funding. Second- and third-class city programs additionally share $350,000 proportionally. The law does not state the historical funding amounts or each city's share.

Recreation funding supports parks and fishing

Parks, forests, and recreation appropriations must fund grants for projects that improve those resources and activities. The Fish and Boat Commission can also use Fish Fund money for boating expenses when the activities benefit fish and fishing. Neither change states a funding amount or creates direct payments to households.

Transit special prosecutor receives implementation funding

Up to $1.2 million in the Attorney General's operating appropriation covers implementation of the mass transit special prosecutor provision. The allocation does not establish direct rider payments or change transit fares.

Treatment and diversion services receive funding

At least $1.75 million funds county substance-use treatment grants during incarceration and after release from county facilities. A doctor must determine that participants meet clinical criteria for opioid or alcohol use disorder. Treatment includes FDA-approved medication and other treatment as clinically needed. A separate $700,000 funds diversion services for first-time nonviolent offenders facing prison sentences. Diversion includes education, job services, case management, and mentoring as an alternative to prison.

University studies trauma-informed violence prevention programs

At least $2 million goes to a university in a first-class city for research on trauma-informed programs. The research examines their effects on community violence prevention and health disparities. The provision does not create direct household payments.

Unused marijuana funds support crime victims

The law moves qualifying uncommitted Medical Marijuana Act money into the Crime Victim Services and Compensation Fund. It covers money available to the Pennsylvania Commission on Crime and Delinquency under section 902(c)(4) through fiscal year 2025-2026. Neither the transfer amount nor an individual payment amount is stated.

Unused pandemic money funds corrections expenses

The Treasurer must transfer qualifying remaining American Rescue Plan money from the COVID-19 Response Restricted Account to Corrections. Covered funds are unspent, uncommitted, or unencumbered state-agency appropriations. The initial transfer was due December 30, 2024, followed by quarterly transfers through December 31, 2026. Corrections can pay payroll and other qualifying expenses incurred on or after March 3, 2021, consistent with federal Treasury guidance.

Cancer and neurological research receive support

Starting in fiscal year 2024-2025, the specified Tobacco Settlement Fund research allocation sends 75% to eligible pediatric cancer institutions. Each institution is capped at $2.5 million per year and must actively conduct pediatric cancer research. The other 25% funds research on ALS, Alzheimer's, Huntington's, Parkinson's, and other neurodegenerative diseases. The Health Secretary designates eligible institutions and grants. The Health Department can also approve one-year extensions for pediatric cancer grants awarded before fiscal year 2025-2026.

Counties gain support for offender treatment

At least 80% of county intermediate punishment appropriations must support treatment, with the remainder also supporting adult probation supervision. Treatment serves offenders sentenced to certified, qualifying restrictive probation conditions and covers drug, alcohol, and mental health needs. The treatment share must be based on national statistics on incarcerated people needing substance treatment. Separately, the state crime commission can grant counties unused, uncommitted pre-2025-2026 funds previously allocated for nonnarcotic medication treatment. Those grants support medication-assisted and comprehensive treatment during incarceration and after release for doctor-diagnosed opioid or alcohol use disorder.

PennCare money cannot cover administration

The Department of Aging cannot use money appropriated for PennCare to pay administrative costs. This protects that money from administrative spending but does not set a household benefit or funding amount.

Protected funding for developmental disability fitness

Health and fitness programs for people with developmental disabilities in a first-class city receive protected funding. The allocation must be at least the amount distributed in fiscal year 2014–2015. The law does not state that dollar amount or set an individual payment.

Required funding for state dementia office

Department of Aging funding must include enough money to operate its Alzheimer's, Dementia and Related Disorders Office. The law does not set a dollar amount. It does not create a direct household payment or change eligibility for care.

Resident care penalty rule lasts longer

The law extends one resident-care penalty provision through December 31, 2026, instead of December 31, 2025. The backing provision does not identify the covered conduct, entities, or penalty amount.

At-risk youth gain out-of-school program funding

At least $11.5 million from violence prevention funding supports out-of-school programs for at-risk school-age youth. The School Safety and Security Committee awards grants to districts, career and technical schools, libraries, and statewide youth-serving nonprofits. Community nonprofits also qualify if they are not members of statewide youth-serving nonprofits. Programs must provide structured activities with engaged mentors and evidence-based or evidence-informed practices. Activities can run before school, after school, or during summer.

Deaf and blind schools receive repairs

The law sets aside $1 million for capital costs and overdue maintenance at charter schools for deaf and blind children. Each school receives an equal share.

Agriculture centers and legal research funded

The agricultural research appropriation provides at least $300,000 for an agricultural resource center. It also provides at least $100,000 for agricultural law research, including work on energy development. The legal research must be conducted with a land-grant university. These allocations do not establish direct household payments.

Air permit applicants get decision deadlines

Covered air permit applications get firm review deadlines: 20 days to flag technical problems and 25 days for applicant corrections. The law sets a 30-day final-decision deadline, with denial required when applicants fail to meet requirements. Missing that deadline means approval unless the applicant agrees to one extension of up to five days. These rules cover general permits and plan approvals published before the rule takes effect, plus later revisions. New permits follow separate Air Pollution Control Act review rules, and all permit holders must still obey applicable laws.

Airports gain advanced flight testing sites

Pennsylvania's transportation department must authorize up to five sites to test, integrate, or demonstrate advanced air mobility systems. Each site must have at least one supporting airport. Within 90 days after the rule takes effect, one site must be authorized in a qualifying fourth-class county. That county must have 133,000 to 134,000 residents under the latest federal census. The law sets no funding amount.

Animal laboratories gain outbreak response funding

At least $6 million from agricultural preparedness funding must cover animal laboratory costs for serious avian influenza outbreaks. The money supports preparation and response by the Pennsylvania Animal Diagnostic Laboratory System. Separately, Animal Health and Diagnostic Commission appropriations must be split equally among qualifying system laboratories. Those laboratories are located at a land-grant university and a Pennsylvania veterinary school.

Beef industry programs receive minimum funding

At least $1.4 million from the agricultural excellence appropriation must support beef excellence programs and initiatives. The provision funds agricultural programs, not direct household payments.

Federal money supports approved solar projects

The Pennsylvania Energy Development Authority receives federal Inflation Reduction Act Solar for All money for eligible projects. Projects must follow federal guidance and receive Commonwealth Financing Authority approval. Earlier appropriations are also available if uncommitted, unencumbered, or unspent as of June 30, 2025. The provision sets no dollar amount or direct household payment.

Hardwood groups receive equal funding shares

At least 80% of hardwood research and promotion money must be split equally among qualifying Pennsylvania hardwood utilization groups. Groups must have been established before this requirement takes effect. The provision does not state the total appropriation or each group's payment.

Insurers can reclaim old assessment payments

Insurance carriers can request refunds equal to their required Workers' Compensation Security Fund assessments paid in 2003. Carriers must submit the Insurance Department's form by its deadline. The department must issue a verified refund within 60 days after receiving the form. Carriers that were in liquidation in 2003 are excluded. Refunds go to carriers, not directly to injured workers.

Medical liability insurer avoids automatic closure

The law removes an old conditional shutdown rule for Pennsylvania's medical liability Joint Underwriting Association. That rule depended on a payment deadline of December 1, 2017. It also included a $200 million General Fund transfer and later transfers of excess funds. Only an act of the General Assembly can now dissolve the Association.

Medical liability insurer gets state oversight

The Joint Underwriting Association remains a state instrumentality under regulatory oversight and must report premiums and claims quarterly. It must provide requested information and submit an operating plan for approval annually, starting January 1, 2026. After the first plan, it can confirm that its approved plan is unchanged; plans cannot conflict with governing law. State laws covering public records, PennWATCH, procurement, and Commonwealth attorneys apply to it as an independent state agency. Operating costs must use legislative appropriations, but this rule does not require appropriations for policy claims.

More environmental permits qualify for speed

The law expands permit types eligible for Pennsylvania's expedited environmental review program. Added types include site-specific storage tank installations, short-term construction mining general permits, and concentrated animal feeding operation permits. The Environmental Protection Department must identify a permit as eligible before the expedited process applies.

New board oversees medical liability insurance

A seven-member board governs Pennsylvania's Professional Liability Joint Underwriting Association. The Governor appoints three members with insurance and medical liability experience and names the chair. Four legislative leaders each appoint one member. Members serve at their appointing authority's will for four-year terms, or until successors qualify. The same appointing authority fills vacancies.

Permit applicants gain online tracking tools

Permit-issuing state agencies must post permit types, issuing programs, legal authority, required deadlines, and average processing times. Initial lists are due within 90 days after the rule takes effect, with updates each January 31. Secure tracking must show application status, deadlines, milestones, estimated time remaining, and the assigned employee's contact information. Agencies with electronic applications and indexed electronic records have six months to launch tracking; others have 18 months. Agencies must acknowledge applications and send tracking instructions within five business days.

State funds community development grants

Money appropriated for community and economic assistance must include state grants for community and economic development. Eligible work includes projects serving the public interest. The provision does not state the allocation amount or name specific recipients.

State racing fund receives dedicated transfer

For budget year 2025–2026, the state transfers $15.305 million from the Pennsylvania Race Horse Development Fund to the State Racing Fund. Transfers cover medication collection, research, and testing costs reviewed and approved by the Pennsylvania State Horse Racing Commission. Payments occur in 52 equal weekly installments before other fund distributions. The transfer provision expires June 30, 2028.

State technology projects receive dedicated funding

For fiscal year 2025-2026, the state must transfer $59.25 million into its Enterprise and Technology Restricted Account. The transfer is due within 60 days after this requirement takes effect. It uses eligible unused operating appropriations from fiscal year 2024-2025 or earlier for agencies under the Governor. Nine projects receive funding, including $20 million for the Enterprise Systems Lifecycle Project and $10 million for enhanced cybersecurity.

Tourism funding backs major Pennsylvania events

For fiscal year 2025-2026, the law moves $50 million from the State Gaming Fund to the Tourism Promotion Fund. The money is appropriated to the Department of Community and Economic Development. At least $10 million goes to a tourism agency in a second-class county chosen to organize a professional sports draft. Other uses include the nation's 250th anniversary promotion, planning, operations, and related infrastructure. Funding also supports planning or operating Pennsylvania events held in 2026.

Tourism marketing and cultural events funded

The law directs $19.315 million from tourism marketing appropriations to Tourism Office activities, including statewide marketing. Additional money from the remaining funding supports planning, marketing, and holding arts and cultural activities. Those activities must have statewide and regional economic impact; the additional amount is not stated.

Transit vehicles can carry illuminated signs

Public transit vehicles can carry illuminated signs on their sides or rear, with Transportation Department approval of size and placement or sign type. Signs cannot block the driver's rear view or unduly distract other drivers. They must connect to a vehicle operation indicator and include enhanced turn signals and brake lights. Signs must support real-time public information and advertising using GPS and location-based controls.

Water permit renewals get decision deadlines

Covered water permit renewals get deadlines: 40 days to flag technical problems and 50 days for applicant corrections. The law sets a 60-day final-decision deadline, with denial required when applicants fail to meet requirements. A missed deadline means approval unless the applicant previously agreed to extend review. Covered general permits address industrial stormwater, small-flow treatment, petroleum-contaminated groundwater cleanup, and wet-weather combined sewer overflows. Permit holders must still obey applicable laws and regulations.

More funding for water and sewer projects

For budget year 2025–2026, the law makes $45.269814 million available for eligible water and sewer project grants or reimbursements. It also makes an additional $5.709187 million from H2O PA funds available for these projects. Eligible projects must cost at least $30,000 and no more than $500,000. For the $45.269814 million allocation, matching funds are excluded from project costs used to calculate grants. These funds support projects, not direct household payments.

Broader funding uses for women's healthcare

Breast cancer screening funds can also pay for women's medical services, including noninvasive birth control supplies. The law expands allowed uses but does not guarantee a particular service or set a payment amount.

Extra funding for specialized nursing care

An additional $500,000 is split equally among qualifying nursing facilities that remain open on the applicable effective date. They must have qualified for supplemental ventilator and tracheostomy care payments in fiscal year 2014–2015. More than 90% of their Medical Assistance residents must have required medically necessary ventilator or tracheostomy care. Another $250,000 goes to a qualifying first-class city nursing facility that began operating after December 31, 2017, and remains open on the applicable effective date. At least 90% of that facility's Medical Assistance residents must have required medically necessary ventilator or tracheostomy care as of August 1, 2022.

Funding floors for two nursing homes

A qualifying county nursing home must receive at least its fiscal year 2014–2015 Medical Assistance long-term-living distribution. It must be in a second-class A home rule county, have more than 725 beds, and Medicaid acuity of 0.79 as of August 1, 2015. A qualifying nonpublic nursing home in a first-class county must receive at least its fiscal year 2020–2021 funding. That home must have more than 395 beds and Medicaid acuity of 1.06 as of August 1, 2022. The law does not state either funding floor in dollars.

Funding for autism services and education

The law allocates $600,000 for autism services at a behavioral health facility and center in a fifth-class county. The latest federal census must show county population between 140,000 and 145,000, and its health system must operate both a general acute care hospital and the qualifying behavioral health facility. Another $300,000 goes to a higher education institution in a first-class city that provides autism education and diagnostic curriculum. It must also operate an autism center in a second-class A county. A separate $300,000 goes to a higher education institution in a second-class county providing autism education and diagnostic curriculum.

Funding for behavioral health and children's therapy

At least $3 million goes to an enrolled outpatient therapy provider in a second-class city within a second-class county. The provider must offer children's outpatient behavioral health and medical rehabilitation services. Another $500,000 goes to a nonpublic inpatient behavioral health facility in a third-class county. The latest federal census must show that county has at least 325,000 and no more than 330,000 people. These payments fund providers and do not establish patient eligibility rules.

Funding for blindness services and eye care

The law allocates $4.084 million to a statewide professional services provider association for people who are blind. Its work includes training, support services, preschool vision screenings, and eye safety education. Another $618,000 supports specialized services and blindness prevention in first-class cities. At least $800,000 goes to a hospital in a first-class city for clinical eye care. These allocations fund organizations and services, not set payments for each patient.

Funding for cleft palate care

The law directs at least $405,000 to services for cleft palates and other craniofacial conditions. It does not name a recipient or set patient eligibility rules. The funding does not establish a direct payment to households.

Funding protections for hospitals and doctors

Hospital emergency relief funding must include aid for hospitals and health systems in financial distress. It may also support rural health research, including alternative payment methods, data collection, and modeling. An affiliated foundation, trust, or nonprofit can apply only with the hospital or health system's permission. Qualifying physician practice plans funded in fiscal year 2017–2018 must receive at least their state appropriation for that year. Qualifying academic medical centers funded that year must receive the same state amount; the law does not state these dollar amounts.

Hospital funding after a local closure

At least $5 million goes to acute care hospitals affected by a hospital closure in a third-class city. The city must be in a second-class A home rule county. Of that funding, 60% goes to an eligible hospital in a second-class township in the same county. The remaining 40% goes to eligible hospitals in contiguous boroughs in that county. A separate $1 million supports a hospital providing emergency department or hospital services in the county affected by that closure.

Incentive funding for nonpublic nursing facilities

The law allocates $21 million for Medical Assistance day-one incentive payments to qualifying nonpublic nursing facilities. Payments depend on federal approval of required Medicaid state plan changes. The Department of Human Services determines each facility's overall and Medical Assistance occupancy rates. The first payment uses resident days for the quarter ending December 31, 2019; the second uses the quarter ending March 31, 2020. Each facility's payment follows the referenced methodology and eligibility criteria; individual shares are not stated.

New funding support for rural healthcare

The Department of Human Services creates a program to carry out Pennsylvania's federally approved rural health transformation plan. Qualified entities able to carry out the plan can receive contracts, grants, program payments, or staff recruitment and retention payments. Funding requires federal money appropriated to and received by the department, or other money appropriated by the legislature. Separately, $10 million funds one-time stabilization payments to operating hospitals providing inpatient general acute care in fourth- through eighth-class counties. The department bases payments on a specified audited hospital cost report or another specified report, and can request audit records. Federal matching money requires federal eligibility, and the department can withhold, reduce, or recover transformation program funding for violations.

One-time funding for a community health center

The law provides a one-time $1 million payment to a qualifying provider in a first-class city. It must have been enrolled in Medical Assistance as a federally qualified health center on July 1, 2024. As of July 1, 2025, it must have had enrolled locations in a federally designated service area without a federal grantee. The payment goes to the provider, not directly to patients.

Preserved funding shares for ALS services

Funding for amyotrophic lateral sclerosis, or ALS, support services must follow the same grantee shares as fiscal year 2024–2025. The law does not state the total funding or each grantee's payment.

State seeks federal job-success coverage funding

The Department of Human Services must seek federal approval for funding the Workers with Job Success category. The request goes to the Centers for Medicare and Medicaid Services. The law does not itself grant federal approval or change household eligibility. No funding amount is stated.

Targeted Medicaid payments for trauma hospitals

Unused Medical Assistance funds for Level III trauma centers or hospitals seeking that status go to qualifying Level I or II centers. Separately, at least $1.25 million in fee-for-service funding goes to a qualifying hospital in a second-class city and county. It must have a Level I trauma center, a comprehensive burn center, and a nursing school. Those criteria replace the prior requirement for 500–530 patient beds. These payments go to hospitals, not patients.

Targeted payments for acute care hospitals

At least $1.25 million goes to an acute care hospital in a third-class city within a third-class county. The latest federal census must show city population between 14,000 and 15,000 and county population between 350,000 and 360,000. Subject to federal approval, at least $2 million goes to another general acute care hospital in a third-class city and county. During fiscal year 2023–2024, it must have operated campuses under the same license as acute care hospitals in a sixth-class county. When paid, it must be an accredited Level 1 trauma center, a Children's Hospital Association member, and a medical school.

Targeted payments for qualifying nursing homes

The law directs Medical Assistance long-term-living money to three qualifying nursing homes, not directly to residents. An eighth-class county nonpublic home gets $2.5 million; it must have more than 119 beds and Medicaid acuity of 1.11 as of August 1, 2022. A nonpublic home in a second-class A home rule county gets $1.5 million. That home must have more than 126 beds and Medicaid acuity of 0.89 as of February 1, 2023. Another $1.5 million goes to a nonprofit skilled nursing home in a second-class A city within a third-class county, with Medicaid acuity of 1.11 as of February 1, 2023.

New tax credits fund affordable housing

The Pennsylvania Housing Finance Agency can sell up to $10 million in affordable housing tax credits each fiscal year. Required taxpayer contributions enter a dedicated fund supporting construction, rehabilitation, and preservation of qualified low-income housing. Certificates begin July 1, 2025, only after the agency receives the required capital payment. Guidelines must prioritize projects with at least 10% of units affordable to people earning no more than 30% of area median income. Credits apply only against qualified tax liability; renters do not receive these credits directly.

Education funding for people with disabilities

The law allocates $600,000 to an alternative education provider serving people with autism and developmental disabilities. The provider must be in the county most recently designated as second class A. The money comes from autism intervention and services funding, not a direct student payment.

Funding for agricultural education programs

The law reserves at least $250,000 from Agriculture Department operating funds for the Commission for Agricultural Education Excellence. The money supports developing and running agricultural education programs.

Funding for alternative education for youth

The Education Department must pay at least $2.9 million to an intermediate unit in a second-class county. The money supports department-approved alternative education programs for disruptive youth. It comes from tuition appropriations associated with specified nonresident orphaned children and children living in institutions. Families do not receive direct payments.

Funding for school solar and buildings

At least $25 million of fiscal year 2025–2026 school facility grant transfers must support recommended Solar for Schools projects. That money goes through the Commonwealth Financing Authority. Separately, the Budget Secretary must transfer $25 million from four specified energy and building programs for school districts' PLANCON project costs. The separate transfer is due within 30 days after that subsection takes effect and funds Education Department payments.

Funding for worker training grants

The law directs at least $8 million from Pennsylvania First funding to WEDnetPA workforce training grants. An alliance of educational providers delivers the grants. Separately, workforce development funding must follow the same distribution shares used in fiscal year 2022–2023. The law does not set a per-person training award.

Higher preschool grants for Pre-K Counts

The law raises Pre-K Counts grants per student by 2.36% over the amount paid in budget year 2024–2025. The increase funds preschool grants, not direct payments to families. The provision does not state the previous dollar amount.

Protected after-school funding for low-income students

The law protects funding floors for two after-school programs serving low-income students. A sixth-class county with 64,730–65,558 people receives at least its fiscal year 2014–2015 allocation. A third-class county with 320,000–330,000 people receives at least its fiscal year 2016–2017 allocation. Population comes from the latest federal decennial census. The law does not state either dollar amount.

School transportation money stays protected

The Commonwealth cannot redirect pupil transportation funding to another purpose. The law does not state the appropriation amount or create a payment to families.

Specialized schools receive retirement funding help

Charter schools for deaf and blind children receive remaining appropriation money after the year's final tuition payment. A separately designated capital amount is excluded. The money helps cover schools' increased share of required Public School Employees' Retirement contributions. Each school's share is based on its retirement contributions in the prior fiscal year.

Targeted college funding and broader internship grants

The law provides $5 million through the State System of Higher Education for a college transfer and workforce initiative. The receiving institution must partner with a community college. It also directs $500,000 from the Higher Education Assistance Fund to Cheyney University's Keystone Academy. Another $1 million from education assistance grant funds supports merit scholarships at a state-owned university in Tioga County. Pennsylvania Internship Program grants can now support seminars as well as internships; individual award amounts are not set.

Avian flu grants for uncovered losses

The Budget Secretary can redirect unused General Fund operating appropriations to Agriculture Department avian flu response. Transfers are allowed when spending and commitments for the specified purposes are below $25 million. Annual transfers cannot exceed $25 million, with no more than $2 million for a rapid response team. Grants cover eligible outbreak preparation or response losses and costs not eligible for or covered by other funding sources. Those sources include federal aid, insurance, and contracts; individual grant amounts are not set.

Community grants support downtown program operations

Keystone Communities money must support economic growth, community development, and municipal assistance projects across Pennsylvania. Main Street Matters money can also cover operating costs for state-designated Main Street or Elm Street programs. Eligible activities include planning, business support, appearance and accessibility improvements, and safety and security. Neither provision states a funding total.

More grant support for farm brands

The Department of Agriculture can award grants using the Pennsylvania Preferred and Pennsylvania Preferred Organic trademark licensing fund. Grants must support one or more of the program's listed funding goals. The provision sets no total funding amount, individual award amount, or recipient eligibility rules.

Ten-year tax breaks for zone businesses

The state can designate one additional Keystone Opportunity Expansion Zone, giving businesses and affiliates there 10 years of tax benefits. Sales and use tax exemptions start upon designation. The fourth-class county must have had at least 130,000 but fewer than 135,000 residents in the 2020 census. The zone must total 10–300 acres, including at least 40 acres in a third-class city in that county. An economic development authority or its designee must apply by October 1, 2026; the state must act by December 31, 2026.

Zone tax breaks cover larger properties

State zone tax benefits extend across qualifying aggregated property, including portions outside existing zone boundaries. As of May 1, 2025, it must total at least 1,200 acres in a first-class city and county. One entity or its affiliates must own it all, with more than 50% of acreage in qualifying zones. Businesses must otherwise qualify for zone benefits; owners of portions of the property also receive applicable relief. Benefits last until all zone designations on the property expire.

Federal eligibility checks cover state payments

The law applies federal noncitizen eligibility and verification requirements to covered Pennsylvania payments and providers. The backing provision does not identify which payments are covered or explain which applicants qualify.

Higher court fee for affected charges

The law raises the specified permanent court fee from $2.50 to $3.50 per applicable charge. People assessed this fee pay $1 more each time it applies.

911 surcharge runs through January 2029

Pennsylvania's 911 emergency communication surcharge is $1.95 from March 1, 2024, through January 31, 2029. People and entities covered by the surcharge pay this amount. This provision does not state how often the charge applies.

Insurance association staff lack public-employee status

Medical Professional Liability Joint Underwriting Association board employees, including its executive director, are not state employees under specified retirement laws. They also are not public employees under the Public Employee Relations Act. These exclusions apply specifically to association board staff.

Contractors pay $100 certificate fees

Pennsylvania home improvement contractors pay $100 for each certificate application or renewal. This fee rule does not apply on or after December 31, 2027. The provision does not set a renewal schedule.

Environmental stewardship loses one funding route

For fiscal year 2025-2026, the law blocks one transfer route to the Environmental Stewardship Fund. No money can move from the Oil and Gas Lease Fund through the Marcellus Legacy Fund for that purpose. The provision does not state the amount affected.

Medical liability members lose asset claims

Joint Underwriting Association members and health care providers insured by it cannot assert claims to its current or future funds. The bar also covers profits, investments, and losses. It applies even if the Association dissolves.

Marketplace assistance loses insurer funding source

The law removes Joint Underwriting Association payments as a required funding source for the Exchange Affordability Assistance Account. It also removes authority to use up to $50 million annually from that source. Lawmakers can still fund the account through appropriations. This change does not itself set new eligibility rules or assistance amounts.

Financial need checks for disability student aid

The Pennsylvania Higher Education Assistance Agency must decide how applicants show financial need for the Blind and Deaf Student Program. It can use federal student aid application information, federal need analysis, and federal aid eligibility. The law does not set a new income limit or award amount.

State redirects money for environmental work

For fiscal year 2025-2026, up to $15 million can move into the Well Plugging Restricted Revenue Account. Sources are the Waste Transportation Safety, Alternative Fuels Incentive, Used Tire Pile Remediation, and Solid Waste Abatement accounts. These transfers move money away from the source accounts into well-plugging funding. A separate $3.016 million received under Article III of Pennsylvania's Tax Reform Code moves to the Environmental Stewardship Fund. The provisions do not identify specific projects or wells.

Attorney General gains spending flexibility

The Attorney General can use specified restricted accounts for general government operations. These include accounts tied to criminal enforcement, collection administration, straw-purchase-prevention education, public protection enforcement, and asset forfeiture. This broadens spending options beyond those accounts' restricted purposes. The provision states no dollar amount.

Tobacco debt payments get funding priority

For fiscal year 2025-2026, specified tax collections must fund a transfer to the Tobacco Settlement Fund for annual debt service. The Budget Secretary certifies the amount, and the transfer is due April 30, 2026. This transfer takes priority over the other statutory deposits and transfers identified in the law. No dollar amount is stated.

Budget impasse loans get changing rules

For fiscal year 2025-2026, the Treasurer can waive interest, costs, or fees on investment loans issued during a budget impasse. Waivers are entirely the Treasurer's choice, not a borrower entitlement. Beginning in fiscal year 2026-2027, the Treasurer's investment authority no longer permits impasse loans replacing expected state appropriations. Issuing such a loan violates the Treasurer's fiduciary investment standard.

Housing funds can cover administrative costs

Pennsylvania can use up to 3% of covered federal housing and community development money for administrative costs. Any money used this way pays for administration rather than projects. The provision does not state the total funding amount or change household eligibility.

School solar funds can cover administration

Beginning in fiscal year 2024–2025, the state can use up to 3% of Solar for Schools money for direct administration. This can include technical help for eligible applicants. Money used for those purposes is not available for project grants.

Business interest deductions use older rules

For tax years beginning after December 31, 2024, Pennsylvania uses the federal business interest limit as of December 31, 2024. Later federal changes do not automatically change that state calculation. This determines how much affected businesses can deduct, rather than setting a fixed tax saving or increase.

Different state write-offs for production property

For tax years beginning after December 31, 2024, businesses add back federal special depreciation deductions for qualified production property. Pennsylvania instead allows depreciation calculated without that special federal rule. When property is sold or otherwise disposed of, an additional deduction covers special depreciation not already recovered through state deductions. The net tax effect depends on the property's deduction history.

Housing credit penalties include transfer relief

Housing-credit certificate holders face penalties for missing scheduled capital payments or failing other agency conditions. The penalty equals 10% of unpaid capital, plus agency costs and fees, payable within 30 days after demand. The agency can also bar participation, seize pledged collateral, recover and reuse capital, and reassign credits. A transfer can avoid the penalty if completed within 30 days after the missed installment's due date. The new qualified taxpayer must contribute the required capital within 30 days after the transfer.

Housing credits transfer with strict limits

Qualified taxpayers can carry unused affordable housing credits forward for seven taxable years after their first eligible year. Credits cannot be carried back or refunded, but agency-approved sales or assignments to qualified taxpayers are allowed. Recipients must claim transferred credits that year, with no carryforward, carryback, refund, or further transfer. A pass-through business can elect in writing to distribute unused credits to owners in proportion to their income shares. The business and an owner cannot both claim credits for the same qualified expenses.

Longer business zone breaks require jobs

Eligible business parcels gain 10 more years of state zone tax benefits after existing benefits expire in 2028 or 2035. Parcels must have a prior extension, total no more than 20 acres, and lie in a first-class city and county. Current qualified businesses must apply at least three months before expiration; the applicant or affiliates must own the entire parcel. Commitments include $150 million in Pennsylvania investment within four years, plus 450 parcel jobs and 600 qualifying second-class A county jobs within five years. New jobs must last eight additional years, specified existing jobs must be retained for eight years, and benefits cover only approved-parcel activity. Failure ends the extension and requires repayment of continuation benefits.

New state deductions for research costs

For tax years beginning after December 31, 2024, Pennsylvania changes how federal research deductions affect state taxable income. Businesses must include specified federal deduction and transition amounts in the state calculation. Additional state deductions generally equal 20% of eligible remaining unamortized or qualified research costs, subject to limits. Deductions cannot exceed eligible expenditures. Special transition rules address costs originally incurred in tax years beginning in 2022 through 2024.

Sponsors & Cosponsors

Sponsor

Tarik Khan
Democratic • House

Cosponsors

Carol Hill-Evans
Democratic • House
Chris Pielli
Democratic • House
Dan Frankel
Democratic • House
Danielle Friel Otten
Democratic • House
Eddie Day Pashinski
Democratic • House
G. Roni Green
Democratic • House
Gina H. Curry
Democratic • House
Jared G. Solomon
Democratic • House
Joe Ciresi
Democratic • House
Joe Webster
Democratic • House
Keith S. Harris
Democratic • House
Kristin Marcell
Republican • House
Liz Hanbidge
Democratic • House
Michael H. Schlossberg
Democratic • House
Perry A. Stambaugh
Republican • House
Robert Freeman
Democratic • House
Steve Samuelson
Democratic • House
Tim Brennan
Democratic • House
Tina M. Davis
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 356 • No: 12

committee vote • 11/12/2025

18 3

Yes: 18 • No: 3

Senate vote • 11/12/2025

House Bill 416 PN2576, Final Passage

Yes: 43 • No: 6