November & December 2025

The Hill Report

Representing the interests of our several thousand members across Pennsylvania, the Manufacturer & Business Association's Government Affairs is your voice on local, state and federal issues.

What's in This Newsletter

Just the Facts from a Pro-Business Point of View

"An informed citizenry is the foundation of a democracy."

CID Associates, Inc., - A Unique Hiring Solution

STATE

  • The 2025-2026 PA Budget
  • Permitting Progress
  • Regional Greenhouse Gas Initiative (RGGI)

FEDERAL - U.S. Congress Next Steps - House and Senate

FEDERAL - Tariff Update

MBA Business Magazine - On the Hill

ECONOMICS

STATE UPDATE


The 2025-2026 PA Budget was signed by Governor Shapiro on November 12, 2025.


The budget, totaling $50.09 billion, includes a 5.1 percent spending increase over the $47.8 million spent last year… The final deal is $1.4 billion less than Shapiro’s original proposal and it leaves the $7 billion plus in PA’s Rainy-Day fund untouched. Withdrawing PA from the Regional Greenhouse Gas Initiative (RGGI) and Permitting Reform were major wins for the GOP. Other positive elements highlighted by the GOP include:

  •  “…Expand the list of fast-track permits…see article below.
  •  Continue the phase-down of the Corporate Net Income Tax and preserve the increase to the Net Operating Loss deduction…
  • …Provides the new Working Pennsylvanians Tax Credit, a new, refundable state-level tax credit linked to the federal Earned Income Tax Credit (EITC). Anyone qualifying for the federal EITC will also qualify for the state-level credit equaling 10% of the federal credit….
  • …Allocate funding for mass transit in Philadelphia and Pittsburgh from special funds rather than general reserves.
  • Introduce evidence-based literacy programs in schools to strengthen student outcomes.

The plan excludes proposals to legalize marijuana, tax skill games…”

…Broadly adapted from “GOP cites positives in newly signed $50B budget that ends RGGI, cuts spending,” Kim Riley, Pennsylvania Business Report, 11/12/2025.

 

Permitting - Language from Senate Bill 6, strongly supported by The MBA.

was incorporated into the Pennsylvania Fiscal Code.


“…The budget enacts meaningful permitting reforms that manufacturers and the broader business community have sought for years. For the first time, certain permits will be considered “deemed approved” if agencies fail to act within statutory time limits. This includes:

  • Air Quality permits, approved in 30 to 35 days.
  • Key NPDES general permit renewals, approved in 60 to 70 days.
  • Additional permit types now eligible for third-party review under the expanded SPEED program.

Additionally, all agencies must now maintain permit tracking systems so applicants can follow the progress of their submissions…”

… “New Budget, Same Problem: Spending Outpaces Reality,” PA Manufacturers Association.


Regional Greenhouse Gas Initiative (RGGI)

The MBA strongly supported Senator Gene Yaw’s legislation to pull the state from RGGI,


Pennsylvania is removed from RGGI, a multi-state compact which former Governor Tom Wolf attempted to enter Pennsylvania by executive order in 2019, prompting years of litigation.


It is mandatory cap-and-trade program for the power sector that limits the amount of carbon dioxide power plants can emit. RGGI required fossil fuel plants to purchase credits for their CO2 emissions. GOP senators have long criticized RGGI as harmful to economic development.


This issue was a major flashpoint between the Senate Republican majority and Shapiro over energy policy.

FEDERAL UPDATE

The Federal Government Re-Opens

The bill to re-open was signed by President Trump on November 12. The House passed a continuing resolution in September to fund the government.


Finally, after 14 tries, the Senate voted 60-40 to pass a bill to fund military construction, veterans’ affairs, the Department of Agriculture, and the legislative branch through 9/30/26 and the rest of government through 1/30/26. Eight Democrats joined Republicans in passing the bill because it included a promise from Senate Majority Leader John Thune to hold a vote on Obama Care subsidies before the year ends.


U.S. Congress Next Steps

 Editor’s Note: What Congress could be working on:

  • Immigration reform since the border is now secure.
  • Permitting reform which is sorely needed to advance innovation in energy and AI.
  • The root causes of the affordability crises in housing and health insurance.
  • Social Security
  • Medicare

 

The U.S. House

The next few weeks are critical as lawmakers try to make up for time lost in the shut-down. Here’s what they are working on:

Epstein files

Senate cell phone litigation - Repeal a provision that allows senators to sue the government for $500,000 if their data was sought or obtained without their knowledge.

Appropriations – Three funding bills were passed as noted above. There are nine more bills to pass to fund the Departments of Transportation, Commerce, interior etc.

Health care - Address the Affordable Care Act (ACA) premium subsidies that Democrats demanded. The subsidies are set to expire 12/31/2025.

Stock trading ban - would ban members of Congress from trading stocks.

National Defense Authorization Act - the massive annual defense policy bill that must get through Congress.

…broadly adapted from What's next for the House as it returns from the shutdown fight

by Sudiksha Kochi, The Hill, 11/15/25

 

The U.S. Senate – The Health Insurance Premium Debate Continues

“…Senate Republicans are deeply divided over how to handle rising health insurance premiums….


Negotiations between 10-12 Republicans and Democrats gained momentum but many GOP senators are staunchly opposed to extending premium subsidies and view the Obama Care marketplaces as unsalvageable…


Senate Majority Leader John Thune has talked up the chances of reaching a bipartisan deal, however, House Speaker Johnson has been among the most skeptical voices on extending the enhanced subsidies that were enacted during the COVID-19 pandemic….”

…broadly adapted from “Senate GOP deeply divided over next steps on rising health care costs,” By Alexander Bolton, The Hill, 11/14/2025

 

TARIFF UPDATE

After months of talks President Trump and Chinese leader Xi Jinping met in late October and agreed on a trade pact. Important takeaways:


The U.S. lowered the overall tariffs to 47%. China pledged strong action against chemicals that produce fentanyl. They will ease some export controls on rare earths for one year and buy substantial amounts of U.S. soybeans. China and the U.S. will pause reciprocal port fees.


President Trump announced that he was scrapping tariffs on beef, coffee, tropical fruits etc. This is one way to address complaints about high consumer prices.

ISSUES & INNOVATIONS

CID Associates, Inc.

Jackie Bott, Chief Financial Officer


“Our experience, engineering and planning make the difference. We are family owned and made with family pride for over three generations! CID offers ultimate availability for immediate solutions to your space management needs in the field, at the site and around the globe. For expandable, flexible, dependable, and available modular lifting buildings and custom interiors, ask CID, the authority on space management solutions.”

 

How many times have you heard an employer say, “We can’t find workers,” or “We can’t find workers who want to work”? There is no silver bullet to find workers, especially those in the trades. I recently bumped into Jackie Bott at an event and in our brief conversation she mentioned a novel workforce solution. I was quick to follow up.


Before the Covid-19 pandemic, CID had around 55-60 employees. CID has two lines of business and usually when one is down, the other is busy, but post-Covid-19 both lines were busy, so they needed workers.


They were looking for welders, carpenters, electricians, and general labor. Jackie, who is not a human resources person, had to wear a new hat. She searched for months, scouring INDEED, staffing agencies, and explored co-ops with trade schools.


Jackie was constantly reading resumes. During interviews she asked simple questions. “Do you know you have to come every day and be on time?” She was “ghosted” many times.


Some days luck finds you. A stranger, Jim, from Hope Center Ministries, Butler County, stopped unannounced. He said they were starting a new program for addicts, and he had to place them in work centers.


CID decided to give the program a try. At that time, business was slow, but they wrote up the contract with Hope Center Ministries. Although CID didn’t bring in any workers right away, Scott knew of other companies having difficulty hiring and passed the information along.


In late 2023 CID brought in three workers from the program. CID eventually brought in several more workers which has solved their labor problem.


The program works like this: It is a full year residential program for men who suffer from addictions of ANY type; drugs, gambling, sex, alcohol etc. It is faith-based and affiliated with a church. Once accepted into the program, men have room and board at the Center. They spend the first 30 days at the center to acclimate them to the program. The next 40-week period they are placed into a workplace. Some have skill sets; others are trained on the job.


During the 40-week period, the men work but do not receive a paycheck. Instead, the company pays the Hope Center, not the workers. After 40 weeks they become CID’s employees, and they are paid directly by the company. The Center provides transportation to and from the workplace. They simultaneously train the men to manage their finances so they can eventually buy a car or rent an apartment, since they do not stay at the Hope Center indefinitely.


The Hope Center doesn’t consider them a successful graduate until they complete their first year in the program. For the year following graduation, the Center stays in contact with the men. The men must remain employed and pass drug tests. If they revert to their old addictions, they have to leave the program.


Part of the mission is rehabilitation and part of it is helping the men to mend any broken fences for instance with girlfriends, spouses, and other family members.


Here’s the best part. The men want to work. They are very polite, eager to learn and understand how fortunate they are to have such an opportunity.


Jackie gave a big “Thumbs up” to the men and the Hope Center Ministries. This is a notable example of ISSUES & INNOVATIONS. A novel solution to a workforce problem has been shared to the benefit of other employers. Thank you, Jackie and CID Associates, Inc. 

GOOD NEWS

Issues & Innovations

Share Your Issue and Your Solution with Colleagues

 

MBA Government Affairs goal is to to stay on top of members’ business issues no matter what type of business. “What keeps you up at night?” Is it employee retention and attraction, taxes, regulations, UC, Workers Comp, inflation, cost of energy, lack of childcare. LMK! eileenanderson@mbausa.org

Some companies who have participated in Issues & Innovations:


Jamestown Coating Technologies

Harmony Castings, LLC

Alpine Packaging, Inc.

Magee Plastics Company

Creekside Springs, LLC

Belco Tool & Manufacturing, Inc.

Guy Chemical Company, Inc.

Western Pennsylvania Steel Fabrication, Inc.

Humes Chrysler Jeep Dodge Ram

Waldameer Park, Inc.

Business Transition Advisors (BTA)

JV Manufacturing Company, Inc.

CID Associates, Inc


Business Magazine "On The Hill"

Business Issues Forum Panel:

Why Can’t We Get This Done Now Governor Shapiro?

The Fifth Annual Western Pennsylvania Legislative Reception on September 18, 2025, at CNX Resources was hosted by The MBA, Washington County Chamber of Commerce, and the Pittsburgh Business Exchange. The event is an important conduit between those who make the laws and those who bear the impact. The Business Issues Forum preceded the reception.


The Forum’s feature was a legislative panel who responded to questions involving the core issues faced by Pennsylvania leaders. The panel, including Senator Scott Hutchinson, Representatives Jill Cooper, Valerie Gaydos, Tim O’Neal and Jeremy Shaffer, displayed an excellent mix of ideas and opinions…


READ MORE 

ECONOMICS


Housing affordability remains a problem, with no easy fixes.

The good news? Housing is more affordable in the Pittsburgh area.


By Gus Faucher, senior vice president and chief economist of The PNC Financial Services Group, 11/23/25


“The cost of living remains an important economic issue, as reflected in election results earlier this month.


One key concern is the cost of housing. The combination of big increases in house prices and much higher mortgage rates since the pandemic has many young people concerned that homeownership is out of reach.


The Trump administration has floated the idea of a 50-year mortgage that could reduce monthly payments and perhaps make purchasing a home more affordable. But there are no easy fixes to the nationwide problem of housing affordability.


The good news is that housing is more affordable, relative to incomes, in the Pittsburgh area than it is nationally..


According to a recent survey from Florida Atlantic University, 48% of Americans are very concerned about housing affordability, with 32% somewhat concerned. Two major factors have led to a big drop in housing affordability since the pandemic....



READ MORE


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