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What’s Ahead for PA Small Businesses in 2026

Pennsylvania 2026 Legislature Update: The Pennsylvania House of Representatives (Democratic narrow majority) reconvened on January 6, 2026, with the next voting session not till January 26. Speaker Joanna McClinton and House Democrats continue to prioritize these key issues: City&State

  1. Increasing the Minimum Wage
    A top Democratic goal is raising the state’s minimum wage, potentially via a tiered system (e.g., $15/hour in high-cost areas like Philadelphia by 2026, lower in rural areas, with cost-of-living adjustments). No increase passed in 2025, but it remains a 2026 focus—facing a strong Republican Senate opposition over impacts on small businesses and nonprofits.
  2. Legalizing Adult-Use Marijuana
    Recreational cannabis legalization is pushed as a major revenue source (e.g., for education and transit). Speaker McClinton is optimistic about 2026 passage, citing public support. Bipartisan bills are expected, but the GOP-controlled Senate is skeptical.
  3. Regulating and Taxing Skill Games
    Unregulated slot-like “skill games” in bars and stores stalled in 2025 due to tax rate disputes (16–52%) and lobbying. A pending Supreme Court case adds uncertainty, but bipartisan interest persists for 2026 as a budget revenue option.

Outlook for Small Businesses
In this divided government (Democratic House, Republican Senate), major Democratic priorities need GOP Senate support to pass—making gridlock likely without compromises.

2026 Elections Impact
All House seats, half the Senate, and the governor’s race are up in November 2026. This may delay controversial issues until post-election, as Democrats seek to hold/expand House control and flip the Senate, while Republicans aim to retake the House. If you’re in a Republican Senate district, ongoing advocacy there is key, given their leverage.

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Any Questions? Email me, tracey@gobigsmallbiz.com

Thanks,
Tracey and Jeff Wakeen

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