This bill establishes Pennsylvania's capital budget for fiscal year 2026-2027, setting specific spending limits on public infrastructure projects. It authorizes up to $1.2 billion for building and structure improvements, $20 million for furniture and equipment, $100 million for transportation assistance, and $325 million for redevelopment assistance, with no funding allocated for flood control projects. The bill directly affects state agencies responsible for managing these capital projects and requires repayment of any debt incurred through the General Fund or applicable special funds. It takes effect immediately upon introduction.
This bill updates Pennsylvania's vehicle inspection rules by exempting the newest model year vehicles from emission testing for five years and removing the gas cap test requirement for cars manufactured without one. While these newer cars are waived from emission checks, they must still undergo visual inspections to ensure emissions control parts have not been tampered with. Additionally, the legislation directs the state to stop spending money on the enhanced emission inspection program in several specific counties and to submit a revised plan to the federal government proving those areas can still meet air quality standards without it.
Senate Bill 323 creates the Keystone National Finance Authority, a new public entity intended to promote economic development and job creation across Pennsylvania and the United States. This authority aims to provide additional financing for a wide range of projects, including industrial, commercial, and agricultural activities, as well as infrastructure, transportation, energy, and housing developments. It is designed to issue bonds and engage in conduit financing to fund these projects, supporting community revitalization and business opportunities. The authority is intended to serve as a public instrumentality of the Commonwealth, complementing existing agencies.
This bill modifies Pennsylvania's oil and gas fee structure to redirect 40% of remaining revenue from unconventional gas well fees (after 2011) into the Marcellus Legacy Fund. Specifically, 25% of this portion will fund county bridge repairs through the Highway Bridge Improvement Restricted Account. Counties and municipalities can use these funds to repair deteriorated bridges, regardless of federal aid eligibility, by submitting approved repair plans. The funds are distributed proportionally based on county population, and first- or second-class counties may also use them for public transportation authority bridges. This changes how oil and gas fee revenue is allocated to support local infrastructure.
HB 416 establishes a new Child Care Staff Recruitment and Retention Program to support early childhood educators and creates a Rural Health Transformation Program to improve healthcare access in underserved areas. It also streamlines permit processes for economic development projects through the Streamlining Permits for Economic Expansion and Development Program. These provisions are integrated into the 2025 state budget implementation, alongside administrative updates to tax collection procedures, state fund management, and reporting requirements for agencies like the Department of Revenue and Treasury. The bill does not alter existing tax rates or create new funding streams but modifies how current state financial systems operate.
HB 1338 allocates funding from the Philadelphia Taxicab and Limousine Regulatory Fund to the Philadelphia Parking Authority for the fiscal year July 1, 2025, to June 30, 2026. This provides dedicated financial support to the Parking Authority using revenue generated by the taxicab and limousine industry. The bill is a routine budget allocation, not a policy change, and was signed into law on June 27, 2025.
SB 35 removes seven specific Pennsylvania counties from the enhanced vehicle emission inspection program based on their population ranges (e.g., third-class counties with 215,000-216,000 residents). The bill requires the Department of Environmental Protection to initiate this removal within 60 days and submit revised state plans to the EPA by January 2026, proving these counties can maintain air quality standards without the inspection program. It also mandates notifying key legislative committees about the plan submissions. The bill directly affects vehicle owners in those counties by ending their requirement for annual emissions inspections under the enhanced program.
