Shapiro WILKES-BARRE — Gov. Josh Shapiro this week met with children, staff, and business and legislative leaders to host a ceremonial bill signing for the recent tax cuts included in the 2024-25 bipartisan budget, aimed at lowering costs for Pennsylvania families and small businesses.
With annual childcare expenses ranging from $9,000 to $13,000 — more than 15% of a median household’s income — many families are feeling the financial strain.
According to the U.S. Chamber of Commerce, the lack of affordable, reliable childcare costs Pennsylvania’s economy $3.47 billion each year in lost earnings, productivity, and tax revenue.
Since taking office, Gov. Shapiro said he has brought Republicans and Democrats together to save Pennsylvanians money by cutting taxes at least four times. In the 2024-25 budget, Gov. Shapiro said he secured a new Employer Child Care Contribution Tax Credit, which is designed to help businesses grow while reducing childcare costs for working families.
That credit builds on the Governor’s expansion of the Child and Dependent Care Tax Credit, which he signed into law last year, delivering $132 million in tax credits to over 212,000 Pennsylvania families this year. The state tax credit now matches 100% of the federal tax credit, increasing the maximum from $630 to $2,100 for families in Pennsylvania.
“I’ve heard first-hand from so many Pennsylvanians who are struggling with high costs right now,” Shapiro said. “From rent to childcare — folks just need a little more help to get by and make ends meet. That’s why we’ve cut taxes and lowered costs for Pennsylvanians, including two tax cuts that make childcare more affordable across the Commonwealth. Whether you’re a senior, you’re a family with kids, or you’re a small business owner, I want you to know we’re working hard to cut costs for you and deliver real relief.”
In addition to the tax credits for Pennsylvania families, the new Employer Childcare Contribution Tax Credit in the 2024-25 budget will encourage businesses to contribute to their employees’ childcare expenses. Employers can claim a tax credit for up to 30 percent of their total contributions to eligible childcare costs, with a cap of $500 per employee — helping businesses save money and driving even more dollars out to help parents with the high cost of childcare. These contributions will also be excluded from the employee’s taxable income. The credit will be available for tax years beginning after December 31, 2024.
Gov. Shapiro’s tax cuts will create real opportunity for Pennsylvanians — allowing businesses to offer more incentives to hire and retain workers, supporting parents with childcare and the cost of higher education, and helping our seniors stay in their homes.
Casey introduces legislation to improve flood insurance affordability for families
U.S. Sen. Bob Casey, D-Scranton, has introduced legislation to cap the cost of flood insurance, making home-ownership more affordable for working families.
Across Pennsylvania, as floods become more frequent and intense, Casey said homeowners are struggling to keep up with significant increases in flood insurance costs, which can be as high as thousands of dollars per year.
The Fair Flood Protection Act would lower the cost of flood insurance by creating a sliding scale premium cap to ensure that families pay fair amounts based on their income.
“Throughout the Commonwealth, including in my home county of Lackawanna, families’ budgets are being increasingly squeezed by the rising costs of flood insurance,” Casey said. “This bill will cut fees and cap flood insurance costs to help ensure that Pennsylvanians can afford to keep their homes safe for generations to come. Hardworking homeowners should be able to protect their homes without worrying about how to pay the bills.”
With many Pennsylvanians struggling to get by and raise their families, Casey said flooding poses a looming financial threat. Most home insurance does not include flood insurance, making the National Flood Insurance Program (NFIP) a key safety net to protect against the devastating impacts of flooding.
After hearing concerns about rising costs of flood insurance, coupled with reports of increased heavy rain and flood risk, Casey introduced the Fair Flood Protection Act to help working families protect their homes without breaking the bank. This bill would help make and keep flood insurance affordable and strengthen the NFIP.
This legislation would help expand flood insurance coverage by reauthorizing NFIP for 10 years, increasing the Federal Emergency Management Agency (FEMA)’s authorization to provide funding for flood protection and mitigation projects, and creating a cap for NFIP premiums based on a sliding scale determined by income. Currently FEMA has instituted a premium model that sets rates based on an individual’s flood risk, which can lead to prohibitively high costs of flood insurance.
Adjusting premium rates to account for income, rather than risk alone, would help to ensure that working class homeowners are not priced out of flood protection.
Treasurer Garrity announces transfer of $737 million to the Rainy Day Fund
Treasurer Stacy Garrity this week announced that $737 million has been added to Pennsylvania’s Rainy Day Fund. The transfer was authorized earlier this year as part of the state budget for Fiscal Year 2024-25.
“When I took office, we had one of the worst reserve funds in the country — the Rainy Day Fund was so small that it would barely cover the Commonwealth’s bills for two days” Garrity said. “Now, thanks to four consecutive years of smart decisions by the General Assembly to bolster our savings, we’re well above the national median. Building and maintaining the Rainy Day Fund are integral to responsible state budgeting, and I applaud the General Assembly and Gov. Josh Shapiro for prioritizing our state’s future.”
Following the deposit of $736,898,803.01, the Rainy Day Fund’s balance has reached a record high of $7.04 billion. That’s enough to cover General Fund expenses for approximately 53.6 days, well above the national median of 46.0 days.
In November, Treasurer Garrity announced that the Treasury Department created a new investment pool dedicated exclusively to the Rainy Day Fund. The new pool is creating greater investment returns for the fund while maintaining necessary liquidity.
The Rainy Day Fund, formally known as the Budget Stabilization Reserve Fund, serves as a safety net for state spending, alleviating pressure to raise taxes or cut discretionary program spending during an economic downturn.
PA Farm Show theme announced
Agriculture Secretary Russell Redding and Community and Economic Development Secretary Rick Siger this week announced the 2025 Pennsylvania Farm Show theme — Powering Pennsylvania — at Oregon Dairy in Lititz.
The Lancaster County business embodies the 2025 Pennsylvania State Fair theme as a family-run agritourism destination, green-energy producer, and community economic driver.
“Agriculture powers Pennsylvania,” said Secretary Redding. “We hope you’ll join us in January to kick off your 2025 with people like Oregon Dairy’s Hurst and Forry families, who power our families with nutritious food every day. Thousands of farm families join them in powering our economy, supporting 593,000 jobs and pouring more than $132.5 billion into our communities every year; and increasingly producing green energy that literally keeps lights on and businesses running. The Shapiro Administration is proud to support Pennsylvania agriculture and the innovative Pennsylvanians who power our daily lives and make us a national leader.”
Oregon Dairy has grown from a 1952 mom-and-pop dairy farm to today’s innovative dairy destination with locally-sourced products featured on the annual PA Preferred Scooped: an Ice Cream Trail — a full-service supermarket, bakery and restaurant — and community education and tourism hub fostering an understanding of sustainable food production — all on a working farm powered by solar panels, recycling, and a manure digester that turns waste into energy.
“Powering Pennsylvania is the perfect theme for the 2025 Farm Show, as agriculture and businesses like Oregon Dairy are truly the backbone of the Commonwealth’s economy,” said DCED Secretary Siger. “That’s why agriculture is one of the five key industries we’re focusing on in Pennsylvania’s economic development strategy. The Shapiro Administration knows it’s one of our greatest strengths, and we’re doubling down to support the growth and continued innovation of this vital industry.”
Every year, the PA Farm Show, Pennsylvania’s State Fair™, brings half a million visitors to the capitol city for eight days of competition, and family fun with an educational twist.
The 2025 event will run from Saturday, Jan. 4, through Saturday, Jan. 11, at the Pennsylvania Farm Show Complex and Expo Center in Harrisburg.
The 2025 Farm Show will feature fan-favorites like the 1,000-pound butter sculpture, delicious Farm Show Food Court, thousands of competitive agricultural events, homegrown cooking demonstrations at the PA Preferred Culinary Connection, and more than one million square-feet of hands-on agriculture education opportunities and chances to engage with the people who power Pennsylvania through agriculture.
To stay up to date on PA Farm Show news, visit — farmshow.pa.gov — or follow the Pennsylvania Farm Show on Facebook and Instagram.
Gov. Josh Shapiro’s bipartisan 2024-25 budget invests in Pennsylvania’s national legacy as a leader in agriculture. The Governor’s new Economic Development Strategy recognizes agriculture, along with energy, manufacturing, robotics, and technology as key to Pennsylvania’s future economic success.
Learn more about Pennsylvania investments in agriculture at pa.gov/aginnovation .
Fetterman presses Federal Reserve for more transparency on FedNow
U.S. Sen. John Fetterman, D-Braddock, this week issued an oversight letter to Federal Reserve Vice Chair for Supervision Michael Barr, pressing the Federal Reserve for greater transparency and detailed responses regarding the performance of FedNow, the central bank’s new instant payment platform, and the fees consumers have to pay for sending payments over FedNow.
The letter follows the Federal Reserve’s reluctance to provide complete and detailed answers to Sen. Fetterman’s Questions for the Record (QFRs) submitted following a Senate Banking Committee hearing earlier this year.
The letter reads in part: “The Federal Reserve has done an extraordinary job navigating the American economy and financial system through a variety of difficult circumstances in recent years. The Fed and its actions are critical to ensuring a sound financial system that works for every family and every business. Affordable, safe instant payments are an important part of that critical work.”
In the letter, Sen. Fetterman emphasized the need for more information and greater clarity around FedNow, which has been operational for over a year. He expressed concerns about the Federal Reserve’s lack of transparency in providing key data, including the number of financial institutions using FedNow, transaction volumes, and whether the Fed is tracking how much banks are charging consumers to use the service.
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