For the fifth year in a row, Pennsylvania will not have a state budget on time.

On Tuesday afternoon, the Republican-controlled state Senate adjourned for a week without a spending plan. Democratic leaders in both legislative chambers expressed frustration with the decision and Republicans’ reluctance to share the proposed spending plan as the June 30 midnight deadline passes.

“[It’s] disappointing, to say the least, and we believe continued work is necessary,” Senator Jay Costa (D-Allegheny), said the state Senate minority leader. “We are here, the governor is here, [and] I want to be able to bring this matter to an end.

He added that all Democratic senators voted against Tuesday’s request for a recess.

Tentative budget proposed by Governor Josh Shapiro passed Chamber in April. Until then, the Senate Appropriations Committee did nothing undressed this proposal at Monday’s meeting, sending it to the meeting room as a formally blank slate.

The pause means no agreement will be reached until next week.

“It’s incredibly frustrating that we’re here on the last day of the fiscal year, but not the last day of the week, and the Senate is already throwing in the towel,” said Rep. Matt Bradford (D-Montgomery), the House majority leader.

In a statement on social media, Shapiro called Republicans’ decision to postpone “disrespectful to the people of Pennsylvania.”

“On the day they were supposed to have sent the budget to my desk, they decided to go home for the holidays,” he wrote. “We were supposed to get through this and finish the job together, but instead they ran away.”

Speaker of the House of Representatives Joanna McClinton (Philadelphia) noted that its chamber, currently scheduled to meet Wednesday, will remain in Harrisburg as long as necessary to finalize the spending plan.

“We will be here on Friday, Saturday, and here at the state Capitol, we will kick off America’s birthday with the adoption of the budget,” she said. “The majority of Senate Republicans have failed again, they are not leading, they are not acting, they are not compromising and, most importantly, they are not finishing the work we are all committed to doing.”

House Minority Leader Jesse Topper (R-Bedford) said he felt negotiations had reached a level “in terms of what can be done in the next week and a half.”

He added that budget talks are more complicated because of Pennsylvania’s divided legislature, which has “two completely different opinions on where the Commonwealth should go, what our finances are and how we should get there.”

“Bringing them together [is] very difficult and we are making progress,” he continued.

Costa said a proposed bipartisan meeting with Shapiro on Monday, at which Democrats “were willing to show up,” did not materialize. On Monday, Topper attended a separate meeting with Shapiro.

Negotiations are ongoing

Topper added that budget talks forced both sides to abandon major policy points after they “failed to reach consensus in a timely manner.”

He said conversations about arcade games, tax cuts, the balance between education spending and school choice, raising the minimum wage and legalizing marijuana have “flatlined” in recent days.

On Tuesday, Senate and House Democrats held a press conference on Capitol Hill to mark the 20th anniversary of Pennsylvania’s founding recently raised the minimum wage — criticizing Senate Republicans for their reluctance to consider this year’s minimum wage bill. And a recent decision by the state Supreme Court arcade games are illegal leaves room for a fresh source of state revenue should the community decide to legalize and tax machines.

Democrats do not want to comment on specific sticking points in the negotiations, saying the most essential one is Senate Republicans’ decision to leave the Capitol.

“We can’t negotiate off the highway,” said Sen. Vincent Hughes (R-Philadelphia), the Senate minority appropriations chairman.

In a statement, Senate Republican leaders said they “obtained needed clarity this week on many of the outstanding issues that are delaying the completion of this year’s budget,” adding that they hope to have a completed spending plan “in the days following July 4.”

A statement from President Pro Tempore Kim Ward (R-Westmoreland), Majority Leader Joe Pittman (R-Indiana) and Appropriations Chairman Scott Martin (R-Lancaster) noted that the chamber will return to Harrisburg “when the final budget language is ready.”

Neither party’s leaders would comment publicly on the final spending figure, but Costa said Democrats were “ready to find a compromise” to reach an agreement.

As America’s 250th birthday approaches this weekend, Rep. Jordan Harris (Philadelphia), who chairs the House Appropriations Committee, said it’s “rich” that lawmakers will leave the Capitol to mark the sesquicentennial with “unfinished work.”

“There are people behind these numbers, and failure to do our job could have consequences,” he continued.

Tuesday marked 20 years since Pennsylvania lawmakers passed the law last to raise the state minimum wage. In 2006 it was $7.15.

In the state Senate, a majority of Republicans voted unanimously to thwart Democrats’ efforts to raise them to $15 an hour with annual cost-of-living increases.

An attempt to force the vote was proposed by Minority Leader Jay Costa (D-Allegheny).

This procedural arc effectively called a vote on the matter Whether to vote in favor of the bill that has been passed by the House for a vote. It’s one of the few tools minority party members have to force a vote on legislation that’s vital to them.

However, Senate rules established at the beginning of the current session meant lawmakers could not debate it content of the plan voted in favor.

So without mentioning the minimum wage, Majority Leader Joe Pittman (R-Indiana) asked senators to vote no.

The result was a division of party lines. All 23 Democrats voted “yes” and all 27 Republicans voted “no.”

According to latest minimum wage report the state Department of Labor shows that in 2025, about 42,900 workers in Pennsylvania received a minimum wage of $7.25 an hour or less.

Another 510,800 earned between $7.26 and $15.

In all states bordering Pennsylvania, the minimum wage is higher than the federal minimum, ranging from $8.75 an hour in West Virginia to $16 an hour in New York.

When the vote on Costa’s motion ended and senators were no longer banned from speaking on the minimum wage, Pittman explained his position.

“I often think about the minimum wage issue, and it’s no secret that in my role as leader, I have made it very clear publicly and privately that we are willing to talk about meeting in the middle,” he said. But he accused Democrats of refusing to budge on the $15 minimum wage

“The reality is this community is very diverse,” Pittman said. “The cost of living varies by region, the cost of labor varies by region. I can say that I have heard especially from nonprofits in the district. I represent the challenges that a $15 an hour minimum wage would impose.”

Last year, a bill passed that would have raised the minimum wage to $15 an hour in most of the state. and up to $12 an hour in smaller, rural countiesit did not receive a vote in the Senate after it was passed by the Democrat-controlled House of Representatives.

A spokesman for Pittman did not respond to Capital-Star’s questions about what type of compromise he would support.

Sen. Christine Tartaglione (Philadelphia) also rose to speak on the minimum wage. For the other members, the beginning of her speech was undoubtedly familiar.

“I get up today because it has been 7,297 days since this Legislature last passed the minimum wage,” she said.

Tartaglione has made roughly the same remark, with a change in number, at the end of virtually every Senate session day since June 2019. On Tuesday, she went further.

“Today we are talking about the 250th anniversary of the founding of our country,” she said. “America is supposed to be a country where if you do everything right and work hard and do your job, you should make a living wage and be able to raise children… That doesn’t happen for over a million people.”

She also discussed her role in passing the recent bill raising the minimum wage in Pennsylvania. In 2006, she negotiated this bill on behalf of Democrats with former Republican Senator Joe Scarnati. She said she agreed not to include an annual cost of living enhance because he warned he would never get enough votes.

“I said, ‘Joe, I hope in 10 years I’m not here begging for minimum wage,’” she said. “Today is twenty.”

In 2009, Pennsylvania’s minimum wage was raised again to reach the novel federal minimum of $7.25, which remains at its current level.

The debate about raising it also moved into the discussion about the upcoming state budget.

In his February budget speech, Gov. Josh Shapiro called to raise the price to $15.

Speaking to reporters Tuesday afternoon, which was also the Legislature’s constitutional deadline to adopt a spending plan, House Minority Leader Jesse Topper (R-Bedford) said lawmakers might be able to find an agreement to raise the minimum wage, but not as part of a budget deal.

“We often say that the budget is a reflection of values,” Tartaglione said. “If that’s true, then a budget that leaves minimum wage workers in place is a statement that their work doesn’t count at the same level as everyone else’s. I don’t accept that. I don’t believe the people of PA accept it either.

At the end of her speech, she added: “I hope you can live with your conscience if we leave here without doing anything.”

State lawmakers have just over 24 hours until the deadline to pass a spending plan for the next fiscal year on Tuesday at 11:59 p.m.

But as of Monday afternoon, few details had emerged from negotiations between Gov. Josh Shapiro and the majority leaders of Senate Republicans and House Democrats. And because Senate rules require that the bill that will ultimately contain the budget be read on three different days, the earliest the budget can be passed is Wednesday.

Shapiro’s spokesman addressed comments he made Friday at an event in Monroe County.

“There are no more excuses. The legislator has a legal obligation to show up, do his job and put the budget on my desk,” he said. “I think they should stay there until they get the budget on my desk. There’s no reason it can’t be done soon.”

The two chambers met Monday in Harrisburg, where closed-door negotiations continued between Shapiro and caucus leaders. A spokesman for Senate Majority Leader Joe Pittman told the Capital-Star in response to questions about the status of negotiations: “budget discussions are still ongoing at this time.”

House passed legislation containing Shapiro’s budget proposal in April, although it had virtually no chance of getting through the GOP-majority Senate.

Senate Republican leaders then expressed “deep concerns about the proposed level of spending and the impact it would have on the state’s structural deficit.”

House Speaker Jordan Harris (R-Philadelphia), the chief architect of the House budget, told reporters on Monday that the chamber had repeatedly pushed for the spending plan to be fast-tracked before Tuesday’s deadline and criticized Senate Republicans for failing to come up with a counterproposal.

“We haven’t seen the state Senate budget yet,” Harris said. he added, “We are waiting for the Senate to tell us or show us what it can do.

Whether you immerse yourself in the state a rainy day fund worth almost $8 billion will be part of the discussion. Democrats point to slightly higher-than-expected revenues, supplemented by taxes on adult-use cannabis and skill games, as a reason to enhance spending.

The Senate took some action on Monday. The Appropriations Committee amended the House-passed budget bill, stripping out almost all of its provisions and effectively turning it into a blank slate.

This was a procedural move intended to get the legislation out of committee and allow it to be passed more quickly. Once negotiations are completed, it will be amended again to reflect the final agreement, although the bill could not be passed until Wednesday at the earliest.

Last year, budget negotiations dragged on for more than six months after the June 30 deadline and a spending plan was finally agreed ends in November.

That has prompted local governments and school districts across the state to cut services or borrow money to finance programs typically funded by the state.

Dow Jones News Fund reporting intern Emily Scolnick contributed to this story.

President Donald Trump was expected to sign the bipartisan bill into law on Wednesday, marking the most significant congressional action in decades to address the nation’s housing shortage, aspects of which were first piloted in Virginia.

Instead, Trump refused to sign the deal and vowed not to do so unless Congress passed the controversial Voting Access Act, but it’s possible the measure could still become law.

U.S. Senator from Virginia Mark Warner, a Democrat who transported provisions of the housing law, stressed on Thursday this potential path of development despite, as he put it, “Trump’s tantrum.”

Typically, a bill becomes law within 10 days without the president’s signature, while Congress is still in session. The Senate adjourned overdue Wednesday night and Warner is confident there will be enough votes to override any potential veto the president might issue.

“We were just about to celebrate the fact that something had been done, that we had addressed the concerns of the American people, and then he canceled the signing of the agreement,” Warner said on Thursday.

He pointed to the “irony” of Republican Speaker Mike Johnson of Louisiana praising the bill at a news event after learning the bill signing had been canceled.

“I hope President Trump will get over his tantrum and just go ahead (and sign it),” Warner said.

The The Path to 21st Century Housing Act was guided by sense. Tom Scott, RS.C. and Elizabeth Warren, D-Mass., along with U.S. Reps. French Hill, R-Ark. and Maxine Waters, D-Calif.

A key provision of the bill is consistent with Trump’s goal of limiting enormous investment firms from purchasing too many single-family homes.

This practice has suppressed the number of first-time homebuyers or contributed to rapid gentrification in some neighborhoods. The proposed safeguards were previously introduced at the state level in Virginia, but did not become state law.

Other parts of the federal statute reflect or are inspired by state laws in Virginia and elsewhere.

The provision to treat manufactured or factory-built homes in the same way as site-built homes in terms of zoning and financing is fundamental Virginia’s recent law which will come into force next month. It aims to enhance the availability of this type of housing in communities that want or need it.

Warner’s provision to encourage the redevelopment of underutilized or abandoned shopping malls into residential buildings is similar to “apartment close to work” bill introduced by Sen. Schuyler VanValkenburg, D-Henrico. The idea is to allow apartments and townhouses to be permitted in certain corridors located in commercial zones.

“They have water, electricity, often broadband, parking… These are places that can be transformed,” Warner explained about the modernization of aged hotels and shopping malls.

Although VanValkenburg’s manufactured housing bill has passed into law, his “housing near jobs” bill has yet to cross the finish line at the state level. If the federal bill becomes law, Warner’s similar concept would make this type of development a little easier across the country.

VanValkenburg said he’s excited to see lawmakers at all levels seeking housing solutions, especially in a decidedly partisan federal legislation.

“At a time when we all, rightfully so, have a lot of cynicism about Congress and its ability to act, this seems like bipartisan action on an issue that needs action,” said Sen. Schuyler VanValkenburg, D-Henrico.

Likewise, Pennsylvania Democratic state senator Nikil Saval was pleased that the federal bill included a concept he was defending in his state. The pilot program helps repair aging homes or alleviate health and safety problems and supports a job training program for people doing this type of work.

Bye. Senate Democrats lament federal housing bill stalled over Commonwealth ties

After leading legislative efforts in his state, Saval worked with his federal senator, John Fetterman introduce it in the countryhe said. Since then, various federal lawmakers have introduced similar bills.

Saval testified before Congress about a federal bill with roots in his state as it gained traction and was officially added to the Path to Housing Act.

“It’s really a dream to replicate this at the national level,” he said in a phone interview Thursday.

Warner, VanValkenburg and Saval see the federal housing bill as an achievement that both political parties can be proud of and as a set of targeted solutions to a national problem.

Trump’s last-minute withdrawal of support for the housing bill was portrayed as an attempt to pressure Congress to pass the Voting Access Act, which would require people to prove U.S. citizenship with a passport or certified birth certificate to vote.

The measure, which Trump has advocated for years, would also impose in-person voting and registration standards.

Supporters say it could strengthen confidence in elections, while opponents warn of the additional burdens it would place on people such as married women whose names have been changed or people who cannot afford to travel to apply for recent documents.

Despite the opposition from members of his party, Trump called the bill’s passage “national emergency” and said that his signature on the housing bill depends on whether the SAVE Act also reaches his desk.

Warner said Trump’s continued push for the SAVE America Act is because he is “still obsessed with the fact that he lost in 2020.” Trump maintained false claims of voter fraud and manipulation in the 2020 presidential election, which he lost to Joe Biden.

Warner added that Virginia, like most U.S. states, already requires identification documents such as driver’s licenses or state IDs to vote, and which relate to claims of voter fraud as of 2020 has been refuted.

The president has 10 days to take action on the Roads to Housing Act, after which it will automatically enter into force. Since the Senate is not currently in session, Trump’s inaction could be considered “pocket veto.However, Congress could override it by a two-thirds majority in both houses.

At a time when nearly half of states are cutting spending to balance the books, Pennsylvania is doing the opposite.

Twenty-two states plan to reduce spending in their budget proposals for next year. According to the tax office, half of them forecast an augment in their funds, i.e. savings questionnaire.

But Governor Josh Shapiro budget plan presents a riskier strategy – one that increases spending by 5% and projects the rainy day fund to be depleted in two years.

Gov. Josh Shapiro begins the budget process with a $53 billion spending plan

The dispute over how to operate state savings – and how much of the risk is worth it – is increasing pressure on budget negotiations among House Democrats, who approved the Shapiro plan in April and Senate Republicans before the June 30 deadline.

Many states have chosen to hold spending steady to maintain balance in the face of stagnant revenues and changes in federal funding policies. The highest number of states have reported cuts to general fund spending from 2021 due to revenue shortfalls, according to a survey from the National Association of State Budget Officers.

However, Pennsylvania saw revenues nearly $1 billion above expected this year as a result of tax law changes, which House Appropriations Committee Chairman Jordan Harris (R-Philadelphia) pointed to as evidence the state can afford to spend more.

“We are very conservative in our estimates,” Harris said. “It kind of throws out any naysayers to the forecasts we made for certain revenue streams because we have always been conservative and we have always outperformed our forecasts.”

Shapiro’s budget proposal relies on still uncertain revenue sources, such as marijuana fees, that don’t yet exist become legalized and adjustable arcade games. Earlier this month, the Supreme Court ruled that arcade games are illegal, leading Democrats in the House of Representatives put pressure on Republican senators enact a high tax that could offset some of the state’s costs.

Despite this, five-year forecasts from Independent Tax Office project that the general fund surplus, which is just under $1 billion, will be exhausted in fiscal year 2026–2027. A nearly $8 billion rainy day fund would follow suit through 2027-28.

The IFO has not updated its long-term forecasts for structural deficit that has persisted for several decades because it depends largely on what is passed each year, the IFO director wrote, but it reached almost $5 billion in May.

Risk analysis

The state budget office does not rely on IFO reports in its forecasts. They independently forecast general funds and rainy-day funds and take demographic trends into account to better assess risk, according to a written comment from the Shapiro administration.

However, compared to other states, Pennsylvania has fewer standard practices for analyzing budget risk. AND Pew study report identified practices in states that assess emerging risks related to demographic, climate and technological changes.

Many other countries have specific working groups and plans entirely dedicated to analyzing future budget risks. Pennsylvania, however, relies solely on written reports and estimates submitted to the state budget office, most of which Pew found were prepared by IFO.

Caitlyn Wan Smith, a Pew staffer and author of the report, said it can be a challenge for states to account for long-term risks in the annual budget process. But she added that consideration should be given to whether budget officials review forecast analyses.

“Something I would look for when assessing a practice for soundness is (IFO) doing this analysis, are budget decision makers looking at this analysis and incorporating it into the budget process?” she said.

The IFO wrote that it only submits its reports to the budget office by making public documents available. Correspondence with the Shapiro administration does not augment before the budget deadline.

Party conflict

House Minority Leader Jesse Topper (R-Bedford County) said it should be up to lawmakers to assess future spending and the risks the state might take, but where to allocate the reserves is a point of contention between the parties.

Republicans would prefer to spend it on one-time expenses, such as: research shows can reduce variability, while Democrats advocate directing them to enduring services to citizens.

“I think that’s where you see the fundamental difference between the two sides,” Topper said. “We believe that if necessary, it should be done for a very specific purpose that will not jeopardize future budgets.”

The there is a budget proposal almost 80% of spending on the Department of Human Services and the Department of Education, and each will receive about $20 billion. About $1 billion in social services spending will go toward funding Medicaid.

Harris confirmed that services like public education and health care “are something that needs to happen” and for which a rainy day fund should be allocated – something he said fixed costs should be factored in as federal support declines.

“I’ve had people come into my office who I thought would have previously received federal support who are now victims of the draconian cuts that we’ve seen at the federal level, asking for the state to make up the losses,” Harris said.

But Topper along with other Republicans while limiting spending, it found it challenging to support the development of programs that the tax base would ultimately not be able to cover.

He also said that while the parties are trying to establish an acceptable level of spending, “there is still a long way to go.”

“(Democrats) see things a little differently,” he said. “If there is money available to them, they will find a way to spend it and use it for new programs that they think are necessary.”

The deadline for adopting the budget is June 30. Over the past two decades, legislators have implemented most of the state’s spending plans with delays.

Commander Stephen Holmes said the Ephraim Slaughter American Legion Post in Harrisburg is a shelter for veterans returning home after the war.

The arcade machines that keep customers entertained also provide income that not only helps the facility keep its doors open, but also helps men and women who struggle in serving their country, he said.

“You might walk in and break bread with someone who stepped on the ground you were on, or you smelled a smell that brought back memories of all hell,” Holmes said. “These are the people we are fighting for.”

Holmes was one of several hundred veterans, volunteer firefighters and miniature business owners who rallied on the steps of the Pennsylvania Capitol in Harrisburg on Tuesday against taxing skill games like casino slot machines. Legislators proposed a range of tax rates of up to 52%.

Doing so would drain the coffers of charities and the wallets of miniature business owners who earn wages, said Douglas Sprenkle, president of the Pennsylvania Taverns and Players Association, which organized the rally.

“Pennsylvania arcade games have provided support to countless businesses and organizations,” said Sprenkle, whose family owns a chain of independent grocery stores. “The question is not whether gaming should be regulated and taxed – the question is whether lawmakers will take a sensible approach or one that forces these locations to close.”

One legislator suggested the issue could drive a wedge between state budget negotiators as the June 30 deadline approaches.

Sen. Anthony Williams (R-Philadelphia) noted that the crowd consisted of voters, not corporate casino owners. He urged Democratic Gov. Josh Shapiro and House and Senate leaders to listen to them, as well as the nearly two dozen lawmakers who joined him at the rally.

“We have one or two ideas. So when you’re in that room, in the backroom, negotiating a deal, remind yourself that that number of state representatives and state senators will tie up the budget,” Williams said. “There is no understanding without us, because we are real.”

Opponents of the tax say they support legislation sponsored by Williams and Sen. Gen. Yaw (R-Lycoming) that would establish a regulatory framework and impose a monthly fee of $500 per machine, which would raise about $300 million annually.

The arcade games look similar to the video slot machines found in casinos and truck stops throughout the commonwealth. Like slot machines in a casino, they allow the player to wager money to win a jackpot.

However, as stated by the creator of the Pace-O-Matic games, they also contain an element of skill that theoretically allows the player to win every time.

Unlike slot machines, they are not regulated by the state. In recent years, they have filled the empty corners of mom and pop stores, restaurants, gas stations and private clubs, growing in a legal gray zone.

Earlier this month, the state Supreme Court resolved that ambiguity, ruling that skill games are illegal, unlicensed gambling devices. Recognizing the potential for confusion over declaring a statewide corporation unlawful, the court stayed enforcement of its ruling for 120 days to give the General Assembly time to act.

For years, even before the Supreme Court took up the issue, some lawmakers viewed arcade games as a source of crime and social problems that required regulation and taxation. Shapiro proposed taxing the devices for the second year in a row, saying the estimated 70,000 machines could generate more than $2 billion in novel revenue.

If the proposed 52% tax were to become law, it would represent the largest tax raise for miniature businesses in state history, they say. Holmes said it would also destroy volunteer fire companies and fraternal organizations such as the American Legion post.

“The money goes to the door and goes back to homeless vets, suicide prevention for vets, tiny homes for vets,” he said, adding that revenue from arcade games also helps the facility pay for backpack giveaways, Christmas celebrations and Easter egg hunts for children in the community.

Jack Paul, deputy fire chief for Deer Lake and West Brunswick Fire Company in Schuylkill County, said arcade games provide operational funding. With just 31 vigorous members in a immense rural area, the fire department no longer has the manpower needed to organize fundraisers.

“What they’ve done for us is we can now pay our bills on time,” Paul said. “We can put fuel in our trucks. We can equip our people with the latest and safest uniforms and equipment.”

Legislative efforts to regulate and tax skill games during last year’s extended budget process ended in a stalemate in the Senate over the tax rate and other details. The casino industry, which has lobbied heavily against arcade games, is taxed at 55% of gross terminal revenues – the total amount wagered on all authorized machines. They pushed for similar stakes in arcade games.

Republican leaders in the Senate have approved a plan to tax skill games at a 35% rate. Prowlwhose district includes arcade game maker Miele Manufacturing, sponsored competing legislation imposing a 16% tax on the machines.

Mark Coolbough, a member of Cresson’s American Legion Post in Schuylkill County, said the arcade games were a “godsend” that helped his organization stay open during the Covid-19 pandemic and subsequent economic turmoil.

“Legislators need to get out of Harrisburg and talk to voters… to better understand what arcade revenue means to us,” Coolbough said. “They need to understand what their actions could mean if we lose this.”

This story may be updated after the vote on the proposed amendments.

Pennsylvania Rep. Scott Perry (R-10) has proposed amendments to the U.S. House Appropriations Act that would reduce funding for the Peace Corps and other foreign aid programs in fiscal year 2027.

The amendments are scheduled to be considered by the chamber’s Rules Committee on Tuesday afternoon.

Perry’s spokesman did not respond to Capital-Star’s questions about why he is seeking to eliminate funding for the programs. He was a Republican supporter of vocals other foreign aid cuts led by billionaire Elon Musk at the beginning of the Trump administration.

The appropriations bill on national security, Department of State, and related programs is one of 12 appropriations bills that Congress should enact each year to directly appropriate government spending. Under this measure, $410.5 million has been allocated to the Peace Corps in fiscal year 2027, which is $20 million less than the organization’s initial request.

But Perry’s amendment would eliminate the funding.

Carla Brown, president of the National Peace Corps Association, a nonprofit organization representing nearly 250,000 Americans who have served in the Peace Corps, told the Capital-Star: “It is saddening and disappointing to question the value of volunteering. The return on investment in the US is exponential. Nearly 25% of returning Peace Corps volunteers go on to launch successful business ventures. 86% remain active volunteers in their communities…Each year, the economic impact on our economy is estimated at $752-1.1 billion annually.”

Brown noted that the Peace Corps represents less than 1% of the country’s international affairs and foreign aid budget, which has historically represented less than 1% of the total U.S. federal budget.

According to a spokesman, the Peace Corps currently has more than 3,100 volunteers and trainees serving in 61 countries. In 2025 105 volunteers were from Pennsylvania. Founded by President John F. Kennedy in 1961, the independent agency sends volunteers to work in developing countries on projects to improve education, agriculture, health, economic development, youth empowerment and environmental sustainability.

A Peace Corps spokesman said their initial funding request “reflects the growing global demand for volunteers from world leaders and underscores the enduring value of the trusting relationships they build as the face of America in some of the world’s most remote communities.”

Acting Director of the Peace Corps Richard E. Swarttz wrote in: note in support of the $430.5 million request, “Volunteers strengthen U.S. national security by fostering goodwill, building mutual understanding, and countering adversarial influence. Returning volunteers also restore leadership and entrepreneurial skills that improve American business and civic life.”

Former DOGE champion

Perry also proposed an amendment to the National Security Appropriations and State Department Act that would cut funding for the Millennium Challenge Corporation, an independent government agency that works with penniless countries committed to democracy to invest in projects that reduce poverty and develop infrastructure.

According to its 2026 budget request, the agency says it helps “create new opportunities for American investment, trade and jobs, opening up valuable opportunities for American businesses while effectively countering the growing influence of China’s Belt and Road Initiative.”

In its current form, the bill would authorize $830 million to be spent on the Millennium Challenge Corporation. Perry calls for it to be reset.

Another Perry amendment would eliminate the $205.2 million proposed for the Democracy Fund, which is administered by the State Department’s Office of Democracy, Human Rights and Labor Affairs. The fund was initially intended to respond to crises in emerging democracies or in areas where democracy is retreating.

He also proposed eliminating $17 million for the Asia Foundation and $16.7 million for the East-West Center and language relating to the Middle East-West Dialogue Trust Fund.

The former Freedom Caucus chairman’s proposals come after a year of Trump administration cuts to foreign aid programs, including the effective elimination of USAID.

Perry championed the work of the Department of Government Efficiency at the beginning of the second Trump administration. He repeated his claims about fraud and waste in foreign spending, many of which were unverified, but he finally expressed frustration with DOGE’s shoddy record keeping and lack of transparency with lawmakers.

Spokespeople for Millennium Challenge Corporation and the U.S. Department of State did not respond to requests for comment from Capital-Star by publication.

Even if the amendments are adopted, it is unclear what will happen in future negotiations with the Senate. Despite the Sept. 30 deadline for filing appropriations bills, it’s also unclear when they might become law.

If lawmakers cannot agree on spending plans, they can adopt a continuing resolution or shut down the government.

In November, Perry faces a tough re-election fight against Democratic rival Janelle Stelson. According to the Cook Political Reportthe race is a “toss up.” The result could determine which party controls Congress next year.

Perry narrowly defeated Stelson in 2024, when Democrats faced stiff headwinds from disapproval of incumbent President Joe Biden and penniless performance at the top of the field. This year’s general polls favor Democrats and Stelson have proven to be among the strongest fundraisers of any congressional candidate in Pennsylvania.

State lawmakers have long viewed skill games as both a vice requiring regulation and a potential source of fresh revenue for the Commonwealth.

They have struggled for years to reach consensus on the details.

Monday’s ruling by the state Supreme Court declaring the devices illegal provided both clarity and a sense of urgency for lawmakers to act.

For more than a decade, video game machines have appeared in gas stations, convenience stores and other tiny businesses across the country. In Pennsylvania, officials’ efforts to contain the spread of the virus were thwarted by a series of court rulings that put skill games beyond the reach of gambling regulators and prosecutors.

The long-awaited decision of the Supreme Court came about two weeks before the June 30 deadline for adopting the next state budget. And Republican leaders in the Senate said shortly after Monday night’s ruling that it was now clear that gambling reform would be “a key part of the solution to this year’s budget.”

Asked about the ruling, Gov. Josh Shapiro told reporters the need to regulate and tax gaming was clear.

““I’ve been calling for this for three years in a row,” he said, adding that Senate Republicans’ acknowledgment of the need for skill gaming legislation is encouraging.

“I’d like to encourage Senate Republican leaders to work with Democratic leaders in the Senate and see what package can get 26 votes in their chamber and then get this bill to my desk,” he said at an unrelated event.

House Democrats, who have already approved Shapiro’s $53.3 billion 2026-27 spending plan, said they hoped the ruling’s finality would assist the Senate resolve disputes and pass legislation to regulate and tax skill games.

“We look forward to seeing what they can pass in the chamber in a bipartisan manner,” House Democratic leaders said in a statement.

Some lawmakers have pushed to ban the devices, saying they contribute to crime in vulnerable neighborhoods, prey on those who can least afford to lose money and expose children to gambling.

Arcade games are similar to video slot machines found in casinos, which are regulated and taxed by the state. Players can bet to win jackpots based on the outcome of random games, but can get their money back if they lose by completing the puzzle.

Pace-O-Matic (POM), a leading manufacturer of skill games, argued in court that the machines differ fundamentally from slot machines in that the game involves an element of skill to win.

On Monday, in a 4-2 decision, the Supreme Court overturned what the majority called a pair of “seriously flawed” decisions by the intermediate appellate court. These rulings essentially allowed counterfeit slot machines to spread in a legal gray market to local stores, taverns and private clubs across the state.

Justice David Wecht, writing for the majority, said the General Assembly had clearly defined what a game of skill was and it was “abundantly clear” that POM machines did not meet it.

Recognizing the potential to put thousands of Pennsylvania businesses on the wrong side of the law overnight, the court delayed enforcement of its ruling for 120 days.

Senate Majority Leader Joe Pittman (Indiana) and President Pro Tempore Kim Ward (Westmoreland) have identified unregulated skill games currently in apply – an estimated 70,000 in number – as a matter of public safety.

“Furthermore, given the fiscal realities facing our Commonwealth, it is logical that new revenues from gaming reform should be directed to the General Fund, as the Governor proposed in his 2026-2027 budget,” they said.

Shapiro’s budget proposed putting skill games under the supervision of the Pennsylvania Gaming Control Board, which already oversees casinos, video gaming terminals and other forms of gambling. With a maximum of five qualified machines per plant and 40,000 statewide taxable at a 52% rate, the plan could generate more than $2 billion annually.

House Appropriations Committee Chairman Jordan Harris (R-Philadelphia) said that while achieving a final product will require cooperation between both chambers, the next move is up to the Senate.

“Let’s be clear: We were asked to send the cases to the Senate, which we did,” Harris told reporters on Tuesday. “We’ve never heard anything from the Senate, so you know we want to see what they want to do.”

The Senate returns to session on June 22.

Attempts to pass laws regulating skill games ended in a stalemate in the Senate last year over the tax rate and other details. The commonwealth’s casino industry, which has lobbied heavily against arcade games, is taxed at 55% and insisted on a comparable rate.

Senate leaders approved a plan to tax skill games at 35%. Sen. Gene Yaw (R-Lycoming), whose district includes arcade game maker Miele Manufacturing, has sponsored competing legislation that would impose a 16% tax on the machines. Yaw and Sen. Anthony Williams (R-Philadelphia) also introduced a bill to impose a monthly fee of $500 per machine.

Also unresolved is the question of whether the tax revenue will go to the state’s general fund or be used to fund transportation – a point of contention in previous budget negotiations as public transportation agencies in the commonwealth face a long-term financial crisis. Senate Republicans, however, rejected Shapiro’s proposal to include about $300 million in fresh no-parity funds for other forms of transportation such as rural highways and bridges.

Last year, Shapiro provided an additional $220 million in capital to the state’s largest transit agency, the Southeastern Pennsylvania Transportation Authority (SEPTA), to address urgent infrastructure needs. But Harris declined to discuss whether transportation funding could be an issue for arcade game revenues during this month’s negotiations.

“We all need to come together, make a decision on how we regulate skill games, where they are going and where they shouldn’t be, and be able to provide relief to communities across the commonwealth that have been waiting for us to do something,” he said.

On July 2, members of Congress will gather at Independence Hall in Philadelphia, where both the Declaration of Independence and the United States Constitution were signed.

The serious event will be part of the celebration of America’s 250th anniversary.

It will be the sesquicentennial anniversary of the day in which the Second Continental Congress held its final vote on a resolution declaring American independence from Great Britain. Their reasoning was explained in detail to the public in the Declaration of Independence, which was ratified two days later.

Pennsylvania Democratic Rep. Brendan Boyle, whose district includes Independence Hall, says it’s the culmination of his efforts to organize Congress for the occasion.

“Exactly two years ago, I launched an effort to bring members of Congress, both Democrats and Republicans, back to where it all began 250 years ago: Independence Hall,” Boyle said in a statement. “I am very proud and excited about this historic and unique event. It will be a unifying moment for Congress and our country at a time when we need it most.”

In 2024, Boyle introduced legislation to hold a commemorative joint session of Congress at Independence National Historical Park. Although that resolution was never passed and there will be no formal joint session, Boyle’s office says there will be a celebratory sesquicentennial event.

However, the event will not have a legislative component and few details have been released about the program or the number of members of Congress. Boyle’s office says more details will be announced in the next few weeks.

The House of Representatives voted Tuesday to tax technology companies that run digital ads in the commonwealth and utilize the revenue to fund property tax relief for seniors.

Independent Tax Office estimates this measure could raise approximately $329 million in fiscal year 2026–2027.

Although many Republicans spoke out against the bill, it ultimately received bipartisan support by a 139-63 vote. Thirty-nine Republicans joined all but two Democrats in supporting her.

The measure would expand the state’s existing 5% gross receipts tax to include revenue earned from digital advertising services provided in Pennsylvania. Many of the country’s largest technology companies, such as Meta and Google, derive most of their revenue from selling targeted advertising.

Bye. Democrats believe a tax on huge tech companies could aid reduce the state’s deficit

It would include an exemption for broadcasting companies and news media.

“We all hear it in our district offices: ‘the cost of everything is too high,’” said the bill’s sponsor, Rep. Elizabeth Fiedler (Philadelphia). “It helps small businesses and those same working people get by on paying their taxes. But some of the richest corporations around the world have been getting a free pass in our state for too long. That’s what this bill is all about.”

The proposal was initially introduced as part of a package of bills pushed by a coalition of progressive organizations called Pennsylvanians for Accountability from Yass, Billionaires and Corporations (PAYBAC).

The other two would close the so-called Delaware loophole, under which companies set up holding companies in Delaware to avoid paying Pennsylvania corporate taxes and collect non-wage income from sources such as mutual funds and stock dividends.

Ultimately, the aim is to shift more of the tax burden to the richest people living and doing business in the bloc, with the digital advertising tax bill specifically targeting large tech companies.

However, the concept of raising taxes has drawn criticism from House Minority Leader Jesse Topper (R-Bedford). He said that while he supports property tax relief for seniors, he believes that raising corporate taxes to fund them will ultimately drive companies out of the Commonwealth and reduce the tax base.

“If we want to provide seniors with property tax relief, we can do it without adding more taxes,” he said. “We don’t have to look for revenue to get more taxes. We need economic growth in Pennsylvania.”

Other critics warned that the tax on huge tech companies could be passed on to tiny businesses that advertise with them in Pennsylvania.

Debate on the bill comes as lawmakers face a June 30 deadline to present Gov. Josh Shapiro with a state budget for the 2026-2027 fiscal year.

The state currently has a structural deficit, as estimated by the Independent Fiscal Office could rise to $6.7 billion next year if lawmakers pass Shapiro’s proposed budget without creating up-to-date sources of revenue.

Although the digital advertising tax measure was initially considered as a way to offset this deficit along with up-to-date revenues from large companies, it was later changed to support property tax relief for homeowners over the age of 65 or homeowners living with someone over the age of 65.

According to Rep. Steve Samuelson (D-Northampton), the money collected from the tax will go into a special property tax relief fund. Eligible homeowners could then apply for the rebate.

Asked whether this measure would continue to serve the purpose of closing the deficit. Samuelson told the Capital-Star: “This helps Pennsylvanians. Every homeowner over the age of 65 and every homeowner with someone over the age of 65 in the home will receive a property tax break.”

Asked if she thought tying the digital advertising tax to property tax refunds for seniors was necessary to convince Republicans to vote for the option, Fiedler demurred.

“I think property tax relief for seniors is something that we can see support for across party lines, hopefully in both chambers.” – said Fiedler. “That said, if the Senate wants to come back and talk about other ways to use this money, I think we’re open to having a conversation.”

“We will have to face really difficult budget decisions,” she added. “So I think it’s a smart decision – a creative idea – to bring in revenues and get ahead of them so that we’re ready and don’t have to make some of these terrible choices about cutting programs that people are counting on.”

The digital advertising tax bill will need to pass in the GOP-controlled Senate before it reaches Shapiro’s desk for his signature.