AGP Executive Report

Drug Pricing Enforcement: DOJ says Ahold Delhaize USA (Giant, Hannaford, Stop & Shop, Food Lion) will pay $40 million to resolve claims it inflated prescription drug prices reported to Medicare Part D, Medicaid and TRICARE—allegedly tied to discounts not properly reflected in reimbursements going back to 2009. Retail & Local Growth: Onvo opened its 42nd Pennsylvania/New York travel plaza in Richmond Township, adding diesel, food, and a full Burger King—aimed at serving the I-99 corridor. School Finance: Williamsport Area School District approved its 2026-27 budget with a real estate tax hike, citing rising health insurance costs. Workforce & Security: Southern Tioga School District moved toward a partnership with the Tioga County Sheriff’s Office to meet Act 55 school security requirements. Tech & Consumer Policy: Pennsylvania House passed a digital advertising tax for tech giants; Senate reception remains uncertain. Business & Safety: Honda recalled 880,000+ vehicles over rear suspension issues; a separate class action targets Odyssey side-airbag deployment claims. Inflation Watch: New data shows inflation at a three-year high, pressuring household budgets. Innovation in Biotech: INDIGO Biosciences launched human bradykinin B1/B2 receptor reporter assays for GPCR drug discovery.

Canada-Pennsylvania Trade Ties: Gov. Josh Shapiro met Ontario Premier Doug Ford in Toronto and signed an MOU to deepen the economic partnership, while Shapiro sharply criticized President Trump’s Canada comments as “reckless and disrespectful.” Inflation Watch: U.S. consumer prices rose 4.2% in May, the highest in three years, driven largely by energy costs tied to the Iran war—raising pressure on rate-cut hopes. Student Aid Fraud Crackdown: The U.S. House passed a bill requiring the Education Department to build an identity fraud detection system for FAFSA to stop “ghost student” schemes. Pennsylvania Digital Ad Tax: The Pa. House approved a bill extending the state’s gross receipts tax to digital advertising, with proceeds aimed at rebates for seniors facing property tax bills. Health Care Settlement: Pennsylvania AG Brenna Bird announced a multistate GS Labs settlement over overpriced and delayed COVID-19 tests, including restitution for affected consumers. Transportation Infrastructure: Amtrak published design renderings for a “once-in-a-generation” overhaul of New York Penn Station, pegged at $7–$8 billion, with major upgrades to concourses, track capacity and passenger experience. Business Leadership: Grocery Outlet named Matt Ferry as CFO, setting up a leadership transition after Chris Miller’s retirement.

Homelessness Surge: Pennsylvania saw one of the nation’s biggest jumps in chronic homelessness in 2025, up about 30% (nearly 640 people) from 2024, with 14,834 people counted statewide. Food Safety: Berks County restaurant inspections flagged issues ranging from improper food holding temperatures and missing date marks to hair restraint and utensil storage problems. Unclaimed Money: Lancaster County residents are owed more than $78.4 million in unclaimed property held by the state Treasury—people can search by name or property number at patreasury.gov/unclaimed-property. Health Coverage Costs: Pennie reported 160,000 people dropped ACA plans for 2026 after premium tax credits expired, including nearly 55,000 in the Philadelphia region. Casino Deal Watch: Fertitta’s proposed Caesars buyout is now under multi-state regulatory review, with New Jersey starting its formal process for Atlantic City assets. Energy Policy: A House panel advanced a utilities rate bill aimed at limiting utility returns to help reduce electric bills. Local Solar Expansion: Centre County approved a third solar array at its correctional facility to offset county electricity use.

Invasive Species Watch: Northern snakeheads—“Frankenfish”—are spreading across the Mid-Atlantic, including Pennsylvania, with the ability to breathe air and survive out of water for days, raising risks for native fish and local ecosystems. Energy & Cost Pressure: AAA says gas prices are inching down nationally, but Pennsylvania lawmakers tied the recent spike to Middle East disruptions and are pushing for ways to lower broader costs, including housing. Healthcare Enforcement: Pennsylvania’s neighbors are watching as a coalition led by New York AG Letitia James secured $36.5 million from CVS over Medicaid insulin overbilling—an issue that can ripple into state budgets and provider costs. Home Care Financing Expansion: PRN Funding is expanding its home-care invoice factoring footprint from Pennsylvania into Ohio, Minnesota, Florida and Missouri to help agencies manage payroll and staffing amid payment delays. Banking & Community Deals: WSFS Bank extended its naming-rights partnership with the Philadelphia Union for the WSFS Bank Sportsplex through the 2030-31 MLS season. Local Business & Growth: Grocery Outlet named Paul Miller as Chief Purchasing and Merchandising Officer and promoted Ian Ferry to CFO as it reaffirms its 2026 outlook. School Budget Impact: East Penn School District approved a final 2026-27 budget with a 3.9% property tax increase, citing rising salary, health care, transportation and facility costs. Workplace Safety: MITER Brands says two of its window/door manufacturing sites earned OSHA Voluntary Protection Program certification, highlighting safety management improvements.

Steel Investment: Nippon Steel plans to invest up to $2.5B in U.S. Steel’s Mon Valley Works in Pennsylvania over three years, including a new hot strip mill, projecting $1.7B in economic impact and up to 6,381 jobs. Healthcare Expansion: Allegheny Health Network and Highmark Health will build a new full-service hospital in Cecil Township (Southpointe II), targeting early-2027 construction and a 2029 opening, with hundreds of permanent jobs expected. Energy Costs & Infrastructure: A fresh push for year-round E15 ethanol sales heads into an uncertain Senate path after House passage, as lawmakers weigh affordability claims against refinery and environmental concerns. Legal & Consumer Impact: Tariff-related class actions add Ikea, Mondelez and Abercrombie & Fitch to lawsuits alleging companies profited by hiking prices after Trump-era tariffs. Local Governance: Farmington Township moves ahead with an ordinance regulating ATV/side-by-side use on selected roads after petitions showed strong support. Business & Trade: Philadelphia is pursuing a strategic partnership with Ghanaian logistics players to expand trade links and supply-chain connections via the Port of Philadelphia. Health Insurance Dispute: The AHA filed an amicus brief backing a challenge to Aetna’s “level of severity” reimbursement policy, arguing mid-contract changes raise hospital burdens and disrupt coverage transparency.

Grid & Data Centers: Federal officials are weighing reforms—and possibly breaking up PJM Interconnection—after data-center demand pushed up electricity prices and strained the nation’s biggest power grid operator, with FERC warning a breakup may be needed if governance changes don’t land. Local Governance: Lancaster County Commissioner Ray D’Agostino told gubernatorial nominee Stacy Garrity that data-center decisions should stay with municipalities, criticizing state guidance as too thin for zoning, water, and electricity impacts. Healthcare Contract Risk: Main Line Health says its UnitedHealthcare contract dispute could leave 32,000 patients out-of-network later this month, raising near-term access worries for Medicare Advantage and employer-backed plans. Legal/Consumer Tech: Pennsylvania’s Supreme Court left open questions after reversing a ruling on online arbitration agreements, and a new analysis highlights what businesses should do next to reduce enforcement risk. Cybersecurity & Finance: A Pennsylvania community bank disclosed a material “shadow AI” incident after an employee fed customer data into an unapproved AI tool, triggering multiple reporting obligations. Small Business Hiring: NFIB’s May jobs report found the small-business employment index essentially flat, with owners scaling back hiring amid cost pressures and difficulty finding qualified workers. PennDOT Travel Planning: PennDOT launched a new Philly-events traffic site (511pa.com/PhillyEvents) with real-time routing tools for World Cup, FIFA Fan Festival, America 250 and MLB All-Star Week. Energy Prices: GasBuddy data shows E15 and diesel prices easing in parts of Pennsylvania in the week ending May 30, with localized lowest-price reports. Business Crime: Philadelphia investigators are probing a nearly $500,000 bourbon theft from a North Philadelphia warehouse, tied to a failed pickup protocol.

Restaurant Inspections: Pennsylvania’s Department of Agriculture flagged food-safety issues at Boomerang Bar & Grill and J L Market in the New Cumberland/Lewisberry area, including temperature-control and thawing problems, while other spots passed. Local Energy & Zoning: Caernarvon Township’s zoning board is at odds with the Chester County Solid Waste Authority over a landfill solar project, with the dispute centered on whether solar transmission lines must be installed underground. Healthcare Leadership: Penn Medicine Doylestown Health named Craig Gronczewski as its new CEO, following Penn Med’s 2025 acquisition of the Bucks County hospital. Nursing Home Watch: CMS data show York North Skilled Nursing and Rehabilitation Center at a 2-star rating and Marywood Heights at 3 stars, with Marywood Heights reporting a fine/penalty in Q1 2026. Business Capital & Growth: SBA-backed support helped a central Pennsylvania boiler business win a major small-business award, highlighting how federal and state lending programs can drive local infrastructure work. Workforce & Community Input: North Central Pennsylvania is seeking public input to update a 20-year regional transportation plan across multiple counties. Public Finance Policy: A stalled Pennsylvania bill would create state aid for municipalities hit hard by tax-exempt property burdens, using liquor-tax revenue as the funding source.

Energy & Consumer Costs: Pennsylvania’s tax take shows a small lift, with 2024 individual income tax collections up 0.4% year over year, while drivers keep watching gasoline swings—GasBuddy reports midgrade prices averaging about $4.99 statewide in the week ending May 30, with local lows like $4.75 in Bedford County and $4.49 in Carbon County. Public Safety & Utilities: A Clairton-area boil-water advisory is in effect, and severe storms across the Susquehanna Valley left thousands without power and prompted cleanup and emergency responses. Healthcare & Regulation: A University of Pennsylvania study using Reddit posts suggests GLP-1 weight-loss drugs may be associated with a wider range of symptoms than clinical trials captured, raising new questions for drug-safety monitoring. Business Briefs: Tompkins Financial is rebranding Tompkins Community Bank to Tompkins Bank & Trust, and Schott Pharma is expanding in Pennsylvania with a $60M vial-production investment. Sports & Media: FIFA says it will collect memorabilia after every 2026 World Cup match, and Xfinity is marketing World Cup viewing options for fans in Philadelphia and beyond.

Restaurant Inspections: Dauphin County inspectors flagged a Harrisburg-area Towneplace Suites for expired sanitizer test strips and improper sink use, while several other local food stops passed with no violations. SNAP Work Rules: New federal SNAP work requirements are rolling out, and analysts warn uneven state enforcement could push recipients toward “laxer” jurisdictions. Nursing Home Watch: CMS data show Erie County’s Lecom at Village Square earned a 4-star overall rating in early 2026, while Bucks County’s Wesley Enhanced Living–Doylestown hit 5 stars and York County’s Rest Haven-York landed at 2. Sports Betting Fraud: A sports betting personality pleaded guilty in cases tied to basketball gambling and confidential info, with prosecutors seeking 8–10 years. Local Business Growth: A Whitehall Township mini mart and eatery is nearing completion of a sister location in Lehigh County, aiming to open in early August. Public Safety & Weather: Severe storms and power outages disrupted travel and communities, including ground stops at major airports. Immigration Detention: Protesters and police clashed again at Newark’s Delaney Hall, with advocates calling for permanent closure. Entertainment & Antitrust: Hollywood workers rallied against the $110B Paramount–Skydance–Warner deal as states prepare legal challenges.

Medicaid Enforcement: Pennsylvania AG Dave Sunday says the state leads the nation in Medicaid fraud convictions, citing aggressive investigations and prosecutions, including a $12 million Philadelphia pharmacy case tied to alleged improper reimbursements. Energy & Costs: GasBuddy reports show widespread price volatility across Pennsylvania in the week ending May 30, with notable lows including Lackawanna County premium at $4.99 and York County midgrade at $4.35, while diesel averages remain elevated statewide. Data Centers vs. Ratepayers: A Western Pennsylvania editorial argues residents shouldn’t subsidize data centers, pointing to grid upgrade costs and higher electric bills as utilities expand capacity to meet surging demand. Public Health Prep: Philadelphia is using a mobile lab near Lincoln Financial Field plus expanded wastewater monitoring to speed infectious-disease detection ahead of the World Cup, with measles among the focus. Local Business Milestone: Hilton’s Electronic Security in Carlisle marks 45 years in business, growing from a one-person locksmithing van operation into a regional security provider. Community & Safety: Fort Indiantown Gap hosted a public open house with National Guard demonstrations, and Duquesne Light issued storm safety tips as severe weather is expected in Western Pennsylvania.

Stormwater Fees Fight: A Pennsylvania Supreme Court ruling upholding stormwater charges against West Chester University is raising new uncertainty for how home-rule municipalities bill nonprofits and other tax-exempt owners, with fees tied to impervious area and watchdogs warning many towns could face follow-on disputes. Amazon Expansion: An Amazon distribution center in Pamelia is essentially complete and is on track to open this fall, with the developer saying construction is done and only site work remains, while local officials expect it to be a jobs boost for Jefferson County. Consumer Spending Watch: U.S. spending is still propping up the economy, but higher prices are starting to erode savings and could pressure summer travel plans as gas and other costs stay elevated. Energy Affordability Debate: A new argument in the policy fight over electricity bills says Gov. Josh Shapiro’s “energy affordability” message won’t help without changing the state’s gross receipts tax on electricity. Craft Beer Leadership: New Trail Brewing is reshuffling leadership, with Founder David Hertwig moving into a strategic CEO role and Paul Gephart taking over as president. First Responder COLA Push: A regional police and firefighter group is backing bills to provide cost-of-living adjustments for retired first responders as pensions lag behind rising everyday costs. Data Center Backlash: Residents are packing meetings to oppose a proposed data center in Columbia, arguing the projects can strain local utilities and drive up costs even if supporters promise jobs and tax revenue. Nursing Home Ratings Snapshot: CMS data highlights a wide spread in Pennsylvania nursing home performance, from top-rated non-profits to low-rated for-profits, underscoring ongoing pressure on staffing and care quality. Food Safety Inspections: Bedford County’s latest food inspection list shows most establishments with zero violations, while a few report multiple issues during recent state inspections. Business Growth & Marketing: A Harrisburg digital agency says AI is changing local search and customer discovery, pushing small businesses to focus on clear, accurate online information to win AI-driven recommendations. Senior Housing Recognition: Presbyterian SeniorCare Network and a new LGBTQ+ friendly affordable senior housing project in Oakland received state LeadingAge PA awards. Coal Power Funding: Trump is backing $700M in federal support for coal power infrastructure nationwide, framing it as job and energy-cost relief. Philly Pride Logistics: Philadelphia is laying out road closures and parking rules for the June 7 Pride parade and festival, with major travel impacts around Center City and the Parkway.

Utilities & Rates: The Pennsylvania Public Utility Commission approved a PPL Electric Utilities settlement that raises the typical residential customer’s distribution rate starting July 1—about $7 more per month on average—while adding a new large-load rate class for data centers with long-term commitments and a non-bypassable charge to support low-income customers. Local Government & Schools: Norristown Area School District adopted a $235.3 million 2026-27 budget with a 1.5% tax increase, adding 52 staffing positions and expanding after-school programming. Energy & Infrastructure: PPL’s rate changes are tied to grid capacity costs and a data-center tariff; separately, PennDOT warned of rolling slowdowns on I-80 today for emergency electric line repairs, and a Karns Crossing bridge project will restrict traffic to one lane June 10. Business & Jobs: TerrAscend filed for a shareholder vote Aug. 24 on a share consolidation aimed at meeting U.S. exchange criteria, after its Michigan exit and facility closures raised questions about cannabis market pressure. Policy & Health: A House Finance Committee hearing advanced a bill to create a tax credit for small businesses that help pay employees’ health insurance premiums. Community & Tourism: Historic Pithole City opens for the season with 50 new interpretive signs and a visitor center schedule starting June 6.

Healthcare Expansion: Allegheny Health Network and Highmark plan a new, full-service hospital in Cecil Township at Southpointe II, aiming to start construction in early 2027 and open in 2029, replacing AHN Canonsburg Hospital and expanding primary, emergency, surgical and critical care. Energy & Grid Pressure: Federal officials are weighing reforms—and possibly breaking up PJM Interconnection—after data centers strain the grid and push up electricity prices across 13 states, with regulators calling the current approval pace “not tenable.” Local Government & Housing/Operations: A Williamsport government study commission is set to draft a Home Rule charter over the next 18 months, with public meetings and consultant presentations guiding the process. Online Gambling Oversight: Pennsylvania lawmakers are advancing bipartisan bills to curb online betting harms, including limits on daily deposits, tighter promotion rules, restrictions on credit-card funding, and stronger self-exclusion protections. Capital Markets: Keel Infrastructure priced upsized $400M of 1.250% convertible senior notes due 2032, with an option for additional notes, expected to close around June 9. Business Growth & Supply Chains: REalloys signed a letter of intent with Patriot Exploration to secure up to 30% of Patriot’s rare earth production for processing and offtake talks. Public Safety: A Montgomery County volunteer firefighter is accused of intentionally setting three fires and then responding with his fire company.

Electric Bills: The Pennsylvania Public Utility Commission approved a PPL Electric distribution-rate settlement that will raise residential bills starting July 1 by about $7 a month (roughly 4.9%), after a decade without distribution hikes. Data Centers & Local Control: A Pennsylvania-based developer’s 220-acre data center campus in Clear Brook, Va. was recommended for denial by county planners, underscoring how communities are pushing back on large-scale projects. Social Security Pressure: A new report warns Pennsylvania retirees could see average Social Security cuts of about $519 per month by 2032 if Congress doesn’t act. Manufacturing Outlook: A survey of Pennsylvania manufacturers found most plan to boost 2027 marketing budgets and hire more staff. Workforce & Innovation: Gov. Shapiro highlighted Mercyhurst University’s Studio 26 venture initiative as part of the state’s push to fund Pennsylvania’s innovation economy. Energy Costs & Gas Prices: GasBuddy reported regular gas averaging about $4.55 statewide for the week ending May 30, with diesel prices also elevated. Legal/Investor Watch: A securities-law firm reminded GeneDx (WGS) investors of an Aug. 3, 2026 lead-plaintiff deadline in a pending class action.

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.