July 2026 | Legislative Update
State Legislative Update
The General Assembly and Governor Josh Shapiro reached agreement on the FY 2026-27 state budget in mid-July, avoiding a repeat of last year’s months-long budget impasse. While many of the Governor’s broader Housing Action Plan proposals remain legislative priorities, the enacted budget included several housing initiatives, including expanding Keystone Opportunity Expansion Zones (KOEZ) to support residential housing development and continuing implementation of the Housing Action Plan through the appointment of Kevin Bush as the Commonwealth’s first Deputy Secretary for Housing.
Since our last newsletter, Pennsylvania’s nationally recognized Whole Home Repair model also achieved a significant federal victory. Following uncertainty surrounding its enactment, the bipartisan 21st Century ROAD to Housing Act became law, establishing a federal Whole Home Repairs pilot modeled after Pennsylvania’s successful program.
Housing legislation also continued to advance prior to the General Assembly’s summer recess. Most notably, SB1346, Senator Greg Rothman’s bill to expand the use of accessory dwelling units (ADUs), advanced from a co-sponsorship memo to active legislation, was reported from committee, and has already received First Consideration in the Senate. Its House companion, HB2186, also passed the House and now awaits consideration in the Senate.
With the budget complete, the General Assembly will spend much of the summer in recess before returning to Harrisburg this fall. The recess provides an excellent opportunity to meet with your legislators in their district offices to discuss local housing needs and the Housing Alliance’s legislative priorities. If you would like assistance scheduling a meeting or preparing materials, please contact the Housing Alliance. You can reach out to Johanna Byrd, Policy Director, at johanna@housingalliancepa.org
We spend a lot of time making sure that our website is updated on the status of legislation that matters so please continue to check it out to stay informed!
You’ll find information on our top priorities and legislation that we’re tracking.