Representing the interests of more than 3,000 members across Pennsylvania, the Manufacturer & Business Association's Government Affairs is your voice on local, state and federal issues.

STATE - Sounds like a Broken Record - Budget Due Date: 6/30/25

STATE - AI Bills Supported by The MBA

STATE - Small Business Advantage Grants

FEDERAL - Sounds like another Broken Record - Govt. Funding - Almost overdue

FEDERAL - Other Issues 

WHAT - Tariffs headed to the Supreme Court

WHAT - PNC Small Business Survey Results

Sounds like a Broken Record

Budget Due Date: 6/30/25

On September 30 the budget will be three months overdue.

Key areas of disagreement and complexity with Gov. Shapiro’s proposed 2025-2026 Budget Remain

Temporary Transit Funding Solution Reached: This was the major sticking point, but it is temporarily solved. A Philadelphia Common Pleas Court ordered the Southeastern Pennsylvania Transportation Authority (SEPTA) to restore sharp service cuts implemented last month because of a state funding shortfall. SEPTA asked and Governor Shapiro agreed that the Public Transportation Trust Fund can be used for funding. PRT- Pittsburgh Transit Authority to follow suit. That will allow operation for the next two years.

Structural Deficit: Pennsylvania is facing a multi-billion-dollar structural deficit and addressing this imbalance while making necessary investments is a key concern for Senate Republicans.

Spending Levels: Republicans criticize the governor's proposed spending increases as unsustainable and potentially leading to future tax hikes.

Education Funding and School Choice: The issue of school choice proposals and the funding mechanism for public education, particularly in light of a 2023 court ruling deeming the current system unconstitutional, continues to be a contentious issue.

AI Bills Supported by The MBA

House Bil (HB) 1689 - Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, provides for streamlining permits for economic expansion and development program; Establishes the Streamlining Permits for Economic Expansion and Development (SPEED) Program, which creates an expedited review process for permit applications related to economic development.  

• Details of the roles of qualified professionals,
•  Outlines timelines for permit decisions,
• Introduces a tracking system for electronic applications,
• Provides procedures for appeals and refunds if deadlines are not met.

Senate Bill (SB) 939 - Commonwealth Opportunity Zone - AI and Data Center Development

Purpose: To make Pennsylvania a leader in AI and data center development.

Provisions:

• Creates a statewide "regulatory sandbox" for AI, Data Centers, and Emerging Technologies, allowing state agencies and industry leaders to collaborate on regulations.
• Includes data center development under a "Fast Track" permitting process to speed up permit approvals.

House Bill (HB) 1625 - Keystone Artificial Intelligence Authority

• Establish an AI Authority within the Department of Community and Economic Development. (DCED)
• Establish the Artificial Intelligence Permitting System Pilot Program within the Department of Environmental Protection;(DEP)
• Establishing the Keystone Artificial Intelligence Development Fund.
• Create a regulatory "sandbox" for AI and other technologies to accelerate innovation by removing outdated regulations.

Senate Bill (SB) 991- Accelerated Data Center Permitting - Aimed at ensuring timely permitting for data center projects.

• Directs the Department of Environmental Protection (DEP) to generate approved earthwork, stormwater and air permits to developers who commit to improved environmental outcomes by meeting or exceeding design standards.
•  An accelerated permit will enable simultaneous pursuit of additional permits, land use approvals and other complicated hurdles which can delay project approval.

Assistance for Businesses - Small Business Advantage Grants

The 2025-2026 Small Business Advantage Grant Program opened for applications on 8/1/2025. Project work must be completed by 6/30/2026.

The program provides grants from 50% to 80% of project costs to small businesses to improve energy efficiency or reduce pollution or waste by: upgrading or replacing equipment or supplies; improving processes; or reducing runoff into affected waterways. Maximum grant award amounts will vary from up to $7,500 to up to $12,000.

CLICK HERE

Congress returned to Washington D.C. on September 2 with a very full schedule.

The Big One - Government Funding 

The main order of business in September will be government funding – either a bill or Continuing Resolution. Currently they are moving toward a shutdown at the end of the month with a 10/1 deadline. Both parties — and both chambers — are blaming each other. The September calendar is complicated by the recess this week in observance of the Jewish high holidays. Lawmakers are in their home states. The House passed a GOP-crafted government funding bill that was swiftly rejected by the Senate, along with a competing proposal to keep the government open. The Senate will not return until 9/29, and the House will not return until October. 

Other Issues 

Center for Disease Control and Prevention - Aside from funding the government, there will also be discussions on the current mess at CDC, Center for Disease Control and Prevention. Health & Human Services Secretary Robert F. Kennedy, Jr. fired the CDC Director over her refusal to support controversial changes to COVID vaccine policy and other senior staff resigned in protest to the firing which has created bipartisan concern.

The Federal Reserve - Turmoil at the Federal Reserve continues. President Trump fired one of the Fed’s Board of Governors, Lisa Cook. Several Republican Senators have warned Trump against trampling on the Fed’s independence as it could undermine market confidence in U.S. debt and the broader domestic economy. Steven Miran was appointed by Trump to fill a vacancy.

Epstein files - The convicted sex offender Jeffrey Epstein saga will continue with lawmakers pushing for the release of files and related documents.

Stock trading ban - another hot button issue.

National Defense Authorization Act - (NDAA) The House passed its version of the NDAA, a must-pass legislation. The Senate has its own version, but it is still under debate.

Confirmation of nominees – On September 18, 2025, Senate Republicans used a procedural move known as the "nuclear option" to confirm forty-eight of President Trump's nominees at once. This change allowed the majority party to approve large batches of certain nominations with a simple majority vote, bypassing traditional procedural hurdles.

Tax - It is possible that Trump and Republicans can attempt to unite around another tax package. Several tax credits not included in OBBB (H.R.1) will expire December 31, 2025. The most important is the expiration of the ACA premium tax credits.

Several controversial issues may be discussed including Trump's deal for the federal government to acquire a 10% stake in Intel. Trump’s takeover of Washington, D.C.’s Metropolitan Police Department ended.

Permitting - Meaningful permitting reform is needed to streamline energy infrastructure projects and unleash energy.

PNC Small Business Survey results near record highs, even with much higher tariffs

BY GUS FAUCHER,  senior vice president and chief economist of The PNC Financial Services Group.

Much of the recent economic data has been worrisome, with inflation picking up and job growth slowing over the summer. But the results of PNC’s Fall 2025 survey of small and mid-sized business owners were among the strongest in the survey’s more than 20-year history.

Although business owners do have concerns about tariffs and inflation, the very strong survey results are consistent with PNC’s forecast for continued economic expansion through the rest of 2025 and into next year.

The U.S. economy is in transition in mid-2025, with tariffs leading to higher prices for many goods.

According to the Budget Lab at Yale University, the effective tariff rate — the tax on goods imports into the U.S., taking into account shifts in buying behavior resulting from the tariffs — has increased from about 2% at the beginning of 2025 to around 14% as of September. This is a tax increase on importers, U.S. businesses and U.S. consumers of more than 1% of the size of the economy. The impacts are now showing up in the data, with goods prices in August increasing at their fastest pace in more than two years. Higher goods prices due to tariffs will stretch consumer incomes, causing them to be more cautious with their spending.

At the same time, the job market has weakened considerably this year. CLICK HERE

Tariffs Take a Detour to the Supreme Court

The U.S. Supreme Court is scheduled to hear arguments on the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on November 5, 2025. They will be forced to grapple with whether Trump can use presidential emergency powers to impose global tariffs. Has he exceeded his authority?

On September 4, 2025, the Trump administration asked the Supreme Court to overturn a federal appeals court ruling that found most of his recently imposed tariffs to be illegal.

They voided most of his so-called reciprocal tariffs against countries August 29. Levies imposed on over sixty countries will remain in effect until October 14, according to the court’s ruling, barring a superseding decision from the Supreme Court.

The court ruled 7-4 that the decision to impose taxes, including tariffs, rests exclusively with Congress. Trump had cited the 1977 International Emergency Economic Powers Act (IEEPA) in his decision to impose tariffs in recent months, characterizing the US deficit (currently $1.6Trillion) as a national emergency. The court rejected that claim. The court's decision does not affect levies on sector-specific goods (including copper, aluminum, and steel) as those were brought under a separate national security authority.

If the court’s ruling stays, an estimated 16% of goods entering the US will be subject to Trump’s recent spate of tariffs, down from 69%.