State budgets

The state has teed up a $21.5 billion, six-year transportation budget as it deals with the fallout from federal workforce cuts, a credit downgrade, and a feud with the Trump administration.

Special budget sessions, falling tax revenues and provisions in the One Big Beautiful Bill Act are combining with tariffs and cuts to the federal workforce to create headaches for the states.

Philadelphia's economy has been growing. But deep cuts Pennsylvania may impose on the regional public transportion system could have serious negative impacts.

Treasurer Brad Briner said the unused money was in state accounts for years.

The state will tap reserve funds, close tax loopholes and cut spending to address a more than $1 billion shortfall in its fiscal 2026 budget.

The president's authority to withhold already appropriated federal funds has been the focus of dozens of lawsuits, including from cities and states.

Auditor General Frank Mautino said the delay was due largely to $1.2 billion erroneously collected from pharmaceutical companies that had to be addressed.

Changes to the federal tax code affect how states manage their budgets depending on how or if the state tax codes conform to the new rules.

A flagship program under the Infrastructure Investment and Jobs Act, the EV charging station initiative was slow to take off despite $5 billion of federal funds.

Both sides of the muni market would be affected by new tax schemes being weighed by states with growing populations and dwindling revenues, according to analysts.