The Food and Beverage Industry is operating in one of the toughest cost environments in years. Margins are thin. Consumers are price sensitive. PFMA’s focus in Harrisburg is straightforward: cut unnecessary costs and stop policies that hurt responsible retailers.
Swipe Fees: Reform Gains Ground
The House Finance Committee again advanced legislation prohibiting interchange fees on the sales tax portion of credit card transactions. For a second consecutive session, swipe fee reform cleared committee. Momentum is building.
HB 2090 addresses a structural imbalance in the credit card marketplace. Two dominant payment networks control more than 80 percent of the market and impose excessive fees on merchants. Retailers are currently charged interchange fees on the full transaction amount, including sales tax. That tax revenue is collected on behalf of the Commonwealth and never retained by the merchant. Yet retailers still pay to process it.
“For food retailers operating on razor-thin margins, being charged swipe fees on sales tax is fundamentally unfair,” said Alex Baloga, President and CEO of PFMA. “HB 2090 delivers a narrowly tailored, common-sense fix that protects Main Street businesses, helps keep prices down for consumers, and restores basic fairness to the payment system.”
The bill also prevents penalty fees in disputed transactions until liability is formally determined and protects lawful pricing practices, ensuring card networks cannot restrict how merchants advertise discounts or apply surcharges. Enforcement would apply only to payment card networks and would be carried out by the Pennsylvania Attorney General.
Swipe fee reform remains one of the most direct ways lawmakers can ease pressure on the Food and Beverage Industry without increasing state spending. PFMA will continue working to move the bill forward.
Alcohol Policy: Modernization vs. Overreach
PFMA also testified before the House Liquor Control Committee on two bills with very different impacts.
HB 1451 would create a new liquor transportation license allowing third parties to deliver beer, wine, and ready-to-drink cocktails on behalf of licensed Pennsylvania retailers. This is a practical modernization. Consumers expect delivery options. Retailers should be able to meet that demand while maintaining strong compliance standards.
The bill would allow businesses to partner with delivery platforms, keep dollars in Pennsylvania communities, and offer a full basket experience, dinner and a drink. More than 30 states already operate under similar models. PFMA strongly supports HB 1451 and urged swift advancement.
HB 1413 and its Senate companion, SB 21, take a different approach. Aimed at addressing so-called stop-and-go establishments, the legislation would make sweeping changes to alcohol rules that risk harming legitimate operators.
Changes to the definition of substantial food offerings could render compliant business models illegal overnight. Retailers would face uncertain enforcement standards and costly appeals. PFMA supports targeting bad actors, but broad regulatory traps that penalize the industry at large are not the solution.
Members can review
PFMA’s full testimony at pfma.org
Budget Proposals with Industry Impact
These debates are unfolding alongside Governor Shapiro’s proposed 2026 to 2027 budget, totaling $53.3 billion in spending, a 5 percent increase over the current year. The proposal relies in part on adult-use cannabis legalization, regulation of skill games, and use of state reserves. Several elements directly affect PFMA members:
Minimum Wage: A proposal to raise the minimum wage to $15 per hour by January 1, 2027.
Adult-Use Cannabis: Legalization effective July 1, 2026, with retail sales beginning January 1, 2027, projected to generate more than $200 million annually once implemented.
Skill Games: Legalization and regulation of up to 40,000 machines statewide, with a five-machine cap per establishment and a 52 percent effective tax rate on gross terminal revenues.
Organized Retail Crime: Increased funding for the Organized Retail Crime Unit within the Office of Attorney General to $3.1 million.
The budget also continues the scheduled reduction of the Corporate Net Income Tax, supports workforce development initiatives, invests in agricultural innovation and pest mitigation, funds the Fresh Food Financing Initiative, and includes additional support for childcare and economic development programs.
Staying Engaged
This is an active legislative season. Swipe fees, alcohol modernization, wage policy, and public safety all carry real implications for the Food and Beverage Industry.
PFMA remains engaged on every front. We will continue advocating for practical reforms, pushing back on harmful proposals, and keeping members informed as legislation advances. ■
Governor Shapiro Delivered Budget Address for the 2026-27 Fiscal Year
Josh Shapiro delivered his 2026 to 2027 Budget Address, outlining his plan to build on the progress made over the past three years and continue moving Pennsylvania forward.
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