
Gov. Josh Shapiro signs the fiscal year 2025-26 budget surrounded by General Assembly members on Wednesday, Nov. 12, 2025, at the Capitol in Harrisburg. The state budget had been due June 30, and Pennsylvania the final state in the country to approve a funding deal. (Photo: USA Today Network)
Several new state laws are set to go into effect in early 2026, laws that offer new tax credits to laws that ban hair discrimination and force schools to be more transparent about weapons incidents.
The Working Pennsylvanians Tax Credit is part of the new state budget, which Gov. Josh Shapiro signed into law Nov. 12.
It provides a refundable tax credit to low- and middle-income workers, similar to the federal Earned Income Tax Credit. Anyone who qualifies for the latter will also qualify for this new state provision. Income, filing status and number of dependents play a factor in eligibility and the amount of the refund, but it will be 10% of what a person receives from the EITC.
The Working Pennsylvanians Tax Credit is capped at $805. It can be claimed when people file their taxes for the 2025 tax year.
Trimming the fat
Another provision of the budget, aimed at cutting costs, means that popular GLP-1 drugs such as Ozempic, when used for obesity and weight loss, will no longer be covered by Medicaid. However, state Medicaid will continue to cover the drugs for treatment of diabetes.
A new law taking effect Jan. 23, S.B. 88, will require insurers to cover the costs of mammograms and breast cancer screenings and exams. The sponsor, Sen. Frank Ferry, said the legislation builds off of Act 1 of 2023, which was passed last session. Act 1 is a comprehensive breast cancer screening and genetic testing law.
“Under our proposal, similar to HRSA (Health Resources and Services Administration) guidance, patients would be able to receive supplemental screenings and diagnostic examinations without cost-sharing if they are at average risk or higher for breast cancer,” Ferry said in his co-sponsorship memo in June.
The ABLE Age Adjustment Act amends the law so it applies to disabled people whose disability started before age 46. It previously applied to anyone whose disability began before age 26.
ABLE accounts are tax-free savings accounts that allow a disabled person to save money for housing, health care, transportation and other expenses without affecting their eligibility for means-tested benefits like Medicaid, Supplemental Security Income or housing and food assistance programs.
The expanded eligibility takes effect Jan. 1.
The Creating a Respectful and Open World for Natural Hair (CROWN) Act bans discrimination based on hairstyles, including braids, dreadlocks, twists and Afros, and head coverings. The law amends the state’s Human Relations Act by adding hair textures and styles to protected characteristics.
Some 27 states, including neighboring New York, New Jersey and Maryland, have so-called CROWN laws. The laws have been passed both in blue and red states, from California, which was the first to pass such legislation in 2019, to Texas and Arkansas. Pennsylvania’s law takes effect Jan. 24.
Weapons notification
Sponsored by Republican state Sen. Jarrett Coleman, R-16th Dist., S.B. 246 requires all K-12 schools, including public, private, charter and career and technical schools, to notify parents, guardians and school employees within 24 hours of any incident involving a weapon that takes place on school grounds, during school-sponsored activities or on school transportation.
Schools must use a form of communication most likely to reach the intended recipients to make notification.
Citing law, Coleman noted that school districts now are only required to notify the Department of Education when students are expelled for weapons violations.
“There should be a much higher level of transparency around weapons brought to schools,” Coleman wrote in his co-sponsorship memo of the legislation.
The new law, which garnered bipartisan support, takes effect Jan. 6.
Second phase
Pennsylvania’s new distracted driving law, Paul Miller’s Law, named for a man who was killed by a distracted driver, took effect in June.
It added to the state’s definition of distracted driving the holding or supporting of a phone or similar electronic device with your hands or body, and using more than a single button to answer a phone call, among other things. The new provisions apply to times when a driver is temporarily stopped, like at a stop light or sign or simply stuck in traffic.
But the first phase of the new law has been merely educational in nature. Starting June 6, 2026, law enforcement officers will be able to cite a driver for the summary offense, instead of issuing a written warning. A first offense will result in a $50 fine, court costs and other applicable fees.
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