AGP Executive Report

War Powers Showdown: The U.S. House passed a war powers resolution directing President Trump to end the Iran conflict or seek congressional approval, 215-208, with four Republicans—including Pa.’s Brian Fitzpatrick—joining Democrats in a rare rebuke. Local Water Enforcement: Knox Borough moved toward liens on properties tied to large past-due water bills as it steps up delinquent-account collections. Municipal Finance: Clarion Borough rejected two $105K loan proposals for a fire hall roof, opting to use cash reserves after bids came in lower than expected. Healthcare Leadership: A Penn professor, Amol Navathe, was named chair of the Medicare Payment Advisory Commission, a key role shaping Medicare policy. State Economic Push: Gov. Shapiro announced a $10M Kurt J. Lesker Co. expansion in Pa., including R&D work in State College and job creation in Jefferson Hills. Aging Services Snapshot: CMS data highlighted mixed nursing home performance across Pa., with some facilities scoring above the state average while others fell below. Public Safety Scam Alert: Pennsylvania State Police warned of a bitcoin “bail” scam using fake law-enforcement calls and “gag order” tactics. Infrastructure & Airports: Williamsport advanced levee repair coordination and secured $593,832 in state funds to rehabilitate its maintenance hangar.

Digital Ads Tax Push: Pennsylvania House Finance Committee advanced a bill to extend the state’s 5% gross receipts tax to digital advertising services, with supporters citing up to $500 million in annual revenue and critics warning costs could hit small businesses and consumers. AI Oversight & Markets: A new Trump executive order sets a framework to vet national security risks of advanced AI systems before public release, while U.S. job openings rose to 7.6 million in April, signaling a resilient labor market. PJM Power Costs for AI/Data Centers: A report says AI-driven data center demand is pushing up PJM capacity auction prices, with the costs spreading across millions of electricity bills. Life Sciences Expansion: Gov. Josh Shapiro joined SCHOTT Pharma USA for a Lebanon County ribbon-cutting on a $60 million expansion that triples U.S. manufacturing capacity and supports more than 200 jobs. Local Economic Development: DCED approved a $22,890 grant for Hooversville to remediate a former gas station site so it can become a municipal office and police station. Gaming Enforcement: Pennsylvania State Police escorted a woman who self-excluded from casinos after she won a slot jackpot, issuing a trespassing citation. Workforce & Small Business: Kish Bancorp completed a $35 million subordinated notes private placement, and Central Contracting highlighted its staffing model for contractors in Clinton County.

Energy & Taxes: A new push to suspend the federal gas tax is framed as short-term relief, but critics warn it would undercut funding for roads, bridges and transit just as costs stay volatile. Cybersecurity: The Canvas ransomware incident tied to the ShinyHunters group is highlighted as a business risk lesson—centralized platforms and third-party dependencies can turn a single outage into enterprise-wide disruption. Sports Business: Steelers edge rusher Nick Herbig agreed to a four-year extension worth up to $100 million, keeping him in Pittsburgh through the decade. Legal & Compliance: J&K Salvage owner Joe Darrah’s case over missing vehicle records is cleared for trial, after claims the documents were destroyed in a scrapyard fire; he also faces separate allegations tied to threats against a state environmental inspector. Healthcare (Nursing Homes): CMS Q1 2026 data show Kittanning Health & Rehab Center ranked as Armstrong County’s largest nursing home, while multiple Pennsylvania facilities’ ownership and CMS ratings vary widely—ranging from top scores to low ratings and penalties—underscoring ongoing operator performance scrutiny.

Child Care Funding Push: Lt. Gov. Austin Davis visited Elizabethtown to tout Shapiro administration investments, including tripled child care tax credits ($136M to 200,000+ families) and $25M in recruitment/retention bonuses, while asking lawmakers to add $10M more for worker bonuses. Healthcare Staffing Expansion: YTC Healthcare says it’s expanding rapid-response staffing solutions across Canada and the U.S. to address ongoing workforce shortages. Workplace Safety for Educators: A PA House panel advanced a bill to provide up to a year of paid leave for teachers injured or assaulted by students or parents, with districts required to keep benefits. Data Center Backlash: Bipartisan pressure is building for a data center “pause,” with Sen. Katie Muth filing a proposed three-year moratorium and GOP candidate Stacy Garrity calling for a pause to update local zoning and protect ratepayers. Manufacturing Jobs: Shapiro announced a $10M Kurt J. Lesker investment supported by $340,000 in state funds, targeting expansion tied to semiconductor-related ALD R&D and creating 39 jobs. Consumer Protection: PA AG Dave Sunday announced a settlement with Lehigh Valley HVAC firm Curtis Total Service over alleged deceptive sales practices targeting seniors. Energy & Cost Watch: AAA reports gas prices in Harrisburg fell about 12 cents to $4.32/gallon, while Pennsylvania’s average remains higher than the national figure. Business & Legal: Sherwin-Williams faces a lawsuit alleging noxious odors from its Rochester coatings plant; separate securities-fraud claims are being pursued by PrimeEnergy investors after reported negative gas pricing and stock drops.

Data Center Fight in PA: Mount Carmel Township residents say they were told they can’t stop AI data centers, but a SpotlightPA report argues Pennsylvania’s new standards still leave zoning authority in local hands—just with more pressure to negotiate. Local Governance: In Shalersville, an open house for a Bitdeer-backed project drew protests and calls for a statewide ban, showing how community pushback is shaping the rollout. Gaming & Compliance: Centre County treasurer warnings to fire companies over online raffles highlight a gap in Pennsylvania law; departments fear losing licenses or permits unless lawmakers update rules. Energy Costs: Penelec customers face higher electricity supply prices starting June 1, with an estimated 6% monthly bill impact for typical residential users. State Budget Deadline: Lawmakers return to tackle the June end-of-month budget deadline as Shapiro’s plan leans on Rainy Day Fund drawdowns and new borrowing. Public Safety & Tech: Pennsylvania municipalities are expanding license plate reader use for stolen-vehicle recovery and Amber Alerts, amid ongoing privacy debate. Healthcare Tech: Mach7 Technologies will showcase enterprise imaging and digital pathology capabilities at SIIM26 in Pittsburgh.

Data Center Policy: Pa. Treasurer candidate Stacy Garrity visited Wilkes-Barre Township to press for a pause and smarter local rules as data center proposals spread in Luzerne County, raising questions about costs to residents and utility bills. Banking & Capital Markets: Embassy Bancorp (Lehigh Valley) expanded its stock repurchase program by $5 million after using nearly all of the prior authorization. Healthcare & Compliance: Penn Medicine struck a multi-year deal with K Health to deploy AI clinical agents across its system. Education Finance: A coalition of Democratic-led states, including Gov. Josh Shapiro, sued the U.S. Education Department over new federal limits on borrowing for “professional” degrees. Public Health: Lancaster County reported two more measles cases, bringing its total to 12 since late April. Energy & Utilities: PECO customers face higher bills starting June 1. Local Business: El Sol Mexican Restaurant in Harrisburg closed after nearly two decades. Construction/Real Estate: MI Windows and Doors launched its Carbonite Collection of black/black vinyl windows and doors, rolling out this summer. Labor/Industry: IBEW Local 614 authorized a strike against PECO workers. Cyber/Privacy: A judge criticized DOJ lawyers for courtroom dishonesty in a separate federal case.

AI in Health Care: Penn Medicine struck a multi-year deal with K Health to deploy AI clinical agents across its network, starting with its virtual urgent care program and expanding into primary care and select specialties. Health Tech Deal: Pro Medicus’ U.S. unit signed a five-year, $28M contract renewal with Allegheny Health Network, adding Visage 7 Workflow—driving a sharp jump in Pro Medicus shares. Flood Risk & Credit: Moody’s warned that rising residential flood exposure is widening the insurance protection gap, creating growing credit risk for households and local governments—an issue that can spread inland, including Pennsylvania. Data Centers & Policy: Pennsylvania lawmakers are waiting on the state Supreme Court to clarify skill games legality before moving on tax and regulation—while the debate continues to shape state revenue plans. Energy & Grid: Gov. Shapiro released new Responsible Infrastructure Development/GRID standards aimed at tightening guardrails for data center development and accountability. Local Business & Community: Republic Services is pushing a new approach to recycling by adding secondary sorting to better recover value from plastics collected at material recovery facilities. Consumer Safety: De Dios’s Ice Pops II recalled multiple fruit popsicle flavors sold in PA and neighboring states due to undeclared allergens.

FDA & Health Tech: The FDA approved Afrezza, inhaled needle-free insulin, for children with diabetes—first needle-free option for kids, with a Chadds Ford teen involved in the trial. Data Centers & State Policy: Gov. Josh Shapiro rolled out full “GRID” standards for data center development, aiming to speed permitting while adding accountability on energy, water, noise, and community impacts. Local Control Pushback: State Sen. Jarrett Coleman and Rep. Jamie Walsh introduced bills to repeal Pennsylvania’s data center sales tax exemption and let municipalities impose moratoriums on new applications. Political Clash: GOP nominee Stacy Garrity attacked Shapiro’s stance as “hypocrisy” amid protests over data centers. Consumer & Finance: A coalition of 23 attorneys general, including Pennsylvania’s Department of Labor and Industry, opposed a Trump administration rule that would steer retirement savings into riskier assets like crypto and private credit. Public Safety: Police reported a multi-vehicle crash that damaged a Pittsburgh gas station convenience store and caused a gas leak; repairs are needed. Fraud Watch: The FBI renewed its hunt for Vanessa O’Rourke, accused of faking terminal brain cancer to raise money and fund luxury trips to Australia.

Data Center Policy: Gov. Josh Shapiro rolled out Pennsylvania’s GRID standards for data center development, tying state support to energy affordability, transparency and community engagement, workforce and economic development, and environmental protections. Housing & Finance: VA home lending in Pennsylvania dipped in Q1 FY2026, with 6.8% fewer VA purchase loans than in Q4 FY2025, totaling $559.6M. Energy Costs: Pennsylvania electric rates are set to rise June 1 for PPL, Met-Ed, and PECO customers. Retail & Jobs: Gap Inc. will permanently close its Old Navy store in Logan Valley Mall in Altoona on June 23. Local Public Safety: A Berks County officer, Kristen Yeager, died in a crash while responding to an emergency assist call; Pennsylvania State Police are investigating. Travel Disruption Watch: DHS is weighing changes to customs processing at “sanctuary” airports, with Newark flagged as a potential flashpoint. Business Growth: Fontana Candle Co. announced an 8x manufacturing expansion in Lancaster this fall, targeting 24,000 candles per day.

Healthcare Access: ChristianaCare will open the ChristianaCare Hospital, Aston campus in early June, adding 24/7 emergency care, inpatient services, imaging and labs for about 15,000 patients a year in Delaware County. Higher Ed & Governance: Spotlight PA and other outlets sue Penn State trustees in federal court over a “gag policy” in bylaws that they say restricts trustees’ public comments and requires PR preapproval. Energy & Grid Costs: A new push for virtual power plants aims to help Pennsylvania manage rising electricity demand and heat-driven price spikes without waiting for long grid buildouts. Data Centers & Local Rules: Warren County plans public hearings as it drafts data center regulations amid resident concerns about water use and infrastructure strain; in Mifflin County, residents pack meetings over a draft planning guidance document even as officials say no formal proposal exists. Water Compliance: A DEP deadline for a park water system permit at Masons Mobile City Trailer Park has passed with no application filed, leaving residents under long-running boil/do-not-consume restrictions. Business & Community: Clinton County Economic Partnership’s first “Toast to Tourism” hands out $80,000 in tourism grants to nearly 20 recipients. Labor Watch: Peco workers vote Saturday on whether to authorize a strike as contract talks stall over wages and benefits.

Data Privacy Fight: Pa. AG Tim Griffin led a multistate amicus brief challenging the SEC’s Consolidated Audit Trail, calling it an illegal “surveillance tool” that threatens Americans’ financial data privacy and security. Healthcare & Public Safety: The state Department of Health warned of possible measles exposure at a Kohl’s store in East Lampeter Township, urging unvaccinated visitors from May 21, 23, 25 and 26 to contact a provider. Immigration Detention Scrutiny: U.S. Reps. Summer Lee and Chris Deluzio conducted an unannounced visit to the Moshannon Valley Processing Center, where detainees alleged neglect, abuse, and inadequate medical care. Housing & Community Development: Montgomery County released its first Housing Blueprint to expand rentals, preserve homes, support homeownership, and cut homelessness with data-driven steps. Economic Development: The Shapiro administration approved $750,000 to remediate a former Carlisle industrial brownfield for future mixed-use development. Workforce Training: Workforce Pell’s final federal rule is out, shifting implementation to colleges as they apply for program eligibility. Energy & Industry: A Pennsylvania Convention Center event (CPHI Americas, June 2–4) spotlights the pharma supply chain’s move toward regional resilience. Food & Consumer Alerts: Wawa Beverage Company issued a voluntary recall of select drinks due to undeclared milk, FDA classifying it as highest risk.

Inflation Pressure: A key inflation gauge accelerated in April to 3.8% year over year, with broader price increases hitting groceries, clothing, and electricity—raising pressure on household budgets and complicating rate-cut expectations. Labor & Manufacturing: Teamsters at Bazooka Inc. in Moosic, Pa. authorized a strike after months of contract talks stalled, with workers citing wages and affordable health care concerns at the nation’s only Ring Pops plant. Healthcare Finance: Pennsylvania’s Attorney General Dave Sunday joined a coalition challenging CVS and its PBM affiliates over alleged concealment of 340B reimbursements, a dispute that could reshape how hospitals and providers get paid. Public Works & Growth: Gov. Josh Shapiro and Philadelphia leaders announced a $30 million traffic plan around the sports complex, including a new I-76 West ramp and upgraded signals. Local Economy & Housing: Lehigh County commissioners backed up to $480 million in St. Luke’s hospital revenue bonds, supporting expansions and refinancing tied to the health network. Energy & Land Use: An intermunicipal committee near Buckhorn approved options for a solar project and exploratory coal drilling, balancing renewables with potential remining. Business & Community: Metso opened an expanded Mesa, Ariz. service and training center with a €17 million investment to boost mining customer support in the U.S. Southwest.

Retail Shakeout: Macy’s is closing 66 stores in 2025 and adding 14 more this year, including its Pittsburgh Mills location in Frazer Township, as consumers stay squeezed by higher prices. Health Tech & Regulation: The FDA’s updated stance on wellness-only blood pressure and glucose sensors is accelerating a new wave of wearables, with companies already rolling out ring and smartwatch features. Education & Budgets: Pittsburgh’s school board voted to close nine schools and shut 12 other facilities, projecting major savings and future reinvestment amid enrollment and finance pressures. Housing Policy: Montgomery County released its first affordable housing blueprint, laying out goals for rentals, homeownership pathways, transit-area development, and a land bank. Data Center Fight: Upper Merion residents are pushing back hard on a proposed King of Prussia data center buildout totaling 4.6 million square feet, arguing it threatens health and quality of life. Public Finance Politics: Pennsylvania Treasurer Stacy Garrity says she’d resign from an insurance-company board if elected governor, highlighting potential conflicts as she challenges Gov. Josh Shapiro. Penn State Governance: Spotlight PA and other outlets sued Penn State trustee leaders over a “gag policy” restricting trustees’ public comments. Consumer Fraud: A Drexel Hill mother-daughter pleaded guilty in a $7M laundering scheme tied to fake businesses and fraud proceeds.

Retail Shakeout: Macy’s says it closed 66 stores in 2025 and will shut 14 more this year, including its Pittsburgh Mills location in Frazer Township, as consumers stay squeezed by prices. Energy & Power Costs: A Pennsylvania op-ed asks why electricity bills are rising even as the state remains a major energy producer via Marcellus Shale. Data Centers vs. Communities: Residents and officials are pushing back as developers target agricultural land for AI data centers, citing land loss, water use, and higher local power costs; separate coverage highlights Shapiro’s push for stricter data-center standards. AI Regulation: Pennsylvania seeks an injunction against Character.AI over claims its chatbot is a licensed psychiatrist, raising concerns about AI mental-health advice. Agriculture Relief: U.S. Agriculture Secretary Brooke Rollins signed a disaster declaration for 17 counties after the April freeze, unlocking emergency loans for fruit growers. Workforce & Education: Kutztown University launches a tuition-free accelerated special education certification pathway, while ELLWOOD awarded a $20,000 industrial maintenance scholarship to a local student. Local Business/Jobs: Saint-Gobain’s Falconer plant will eliminate 79 positions by ending a product line. Travel & Economic Links: American Airlines will add nonstop service from State College to Charlotte starting Oct. 5, 2026. Health & Research: Penn researchers report a protein-blocking approach that could slow early Parkinson’s progression.

Data Centers & Grid Policy: Gov. Josh Shapiro unveiled Pennsylvania’s full Governor’s Responsible Infrastructure Development (GRID) Standards, aiming to set guardrails for data center growth and protect ratepayers, with a new local toolkit to help municipalities weigh proposals. Manufacturing Innovation: Shapiro’s administration announced $3.14 million for the Manufacturing PA Innovation Program, funding 47 student research projects with Pennsylvania manufacturers across 19 counties. Banking Tech Leadership: Northwest Bank named Chad Ballard as its CIO, bringing 25 years of tech leadership from Wells Fargo, PNC and JPMorgan to modernize platforms and expand AI-driven efficiency. Energy Infrastructure: Nextera Energy outlined the Mid-Atlantic Resiliency Link’s proposed 107.5-mile, 500-kilovolt transmission line, projecting about 200 construction jobs and $37 million in payroll. Local Governance & Ethics: The Pennsylvania State Ethics Commission found Pittston Township Supervisor David Slezak violated the Ethics Act, directing a $6,888.04 payment to the township. Consumer & Business Risk: A lawsuit alleges Amazon’s Subscribe & Save program raised prices despite promised discounts, while the FTC and Pennsylvania State Police warned World Cup ticket, rental and phishing scams targeting fans in Philadelphia.

Aviation Expansion: American Airlines will launch nonstop service from State College to Charlotte starting Oct. 5, 2026—twice daily—after a push by the State College Air Service Alliance and partners including Penn State. Local Grants & Community: Clinton County and Centre County each landed PA Wilds Center mini-grants from the $80,000 Community Engagement pool, backing projects like an Active Arts Corridor and a cycling-race prep effort. Education Access: Swarthmore College announced a tuition guarantee covering full tuition for families earning under $200,000 starting fall 2027. Public Safety & Health: PennDOT is urging safer motorcycle riding as the state reports 2025 crashes and fatalities down from 2024, while the FDA flags a new Salmonella outbreak tied to MOGO moringa capsules. Civic & Culture: Lock Haven’s Downtown Rotary story spotlights its Little Red Libraries push, and Williamsport’s Crosscutters are gearing up for Historic Bowman Field’s 100th anniversary season.