Pennsylvania General Assembly Prepares to Return to Session

The Pennsylvania General Assembly will return to session the week of September 28, picking up its work following the summer recess. As lawmakers prepare to reconvene, here is a look at where they left off and several provisions of importance to Pennsylvania physicians.

Before recessing, the General Assembly passed a bipartisan compromise $50.85 billion state budget for fiscal year 2026-27, which Governor Josh Shapiro signed into law on July 12 following a 12-day impasse. The spending plan increases overall spending by approximately 3.7% without drawing from the state’s $8 billion Rainy Day Fund or imposing any new or increased broad-based taxes.

To balance the budget without new sources of revenue or transfers from the Rainy Day Fund, lawmakers shifted $500 million from off-budget special funds and deferred $1.3 billion in recurring Medicaid managed care costs to the next fiscal year.

Of particular significance to PAMED is the Primary Health Care Practitioner line item administered by the Pennsylvania Department of Health. This line item supports the physician loan repayment program and the state-funded residency program. The enacted budget maintains the increased funding secured for these programs over the past several budget cycles.

Other significant provisions include:

• Health and Human Services
  • Mental health services receive an additional $41 million, including $10 million for the 988 network and $5 million for walk-in crisis stabilization clinics. Rape crisis centers receive a $12 million increase over the previous year.
• Education
  • Education receives $678 million in new funding, including $565 million for underfunded schools, $58 million for basic education and $55 million for special education.
• Infrastructure
  • A new Rapid Bridge and Road Deployment Program receives $775 million to expedite shovel-ready transportation projects.
• Taxpayer Relief
  • The budget provides $216.7 million in relief for low- and middle-income workers through the Working Pennsylvanians Tax Credit.
• Corporate Tax Reductions
  • The budget maintains the scheduled phase-down of the Corporate Net Income Tax toward a target rate of 4.99% by 2031.
• Biotechnology and Innovation
  • The “Innovate in PA 2.0” initiative provides $125 million in capital to support biotechnology startups and fund clinical trials within the life sciences sector.
• Childcare Support
  • The budget provides $30 million for childcare worker recruitment and retention bonuses.
• Joint Underwriting Authority Funds Remain an Issue for Physicians