Harrisburg, PA, September 10, 2025 – State Senator Nick Pisciottano (D–Allegheny) has introduced Senate Bill 996, legislation aimed at strengthening transparency, improving fairness, and closing loopholes in the Redevelopment Assistance Capital Program (RACP) bidding process to ensure taxpayer dollars are used responsibly and workers are paid fair wages on state-funded projects.
The bill responds to growing concerns that the current RACP requirements allow contractors to submit bids that omit prevailing wage costs, creating an unfair playing field and leaving grant recipients without enough funding to complete their projects.
“If you know you’re required to pay prevailing wage on a project, that should be part of the bidding requirement from day one,” said Senator Pisciottano. “Right now, the law allows bids that exclude fair wage costs, leading to low-ball estimates that win the contract, then force the project back to the state for more money. That’s not fair to taxpayers, workers, or local businesses that follow the rules.”
Under current law, RACP applicants must submit three cost estimates as part of the grant process—but prevailing wage only applies after the grant is awarded. As a result, contractors who omit these required labor costs can undercut responsible businesses during the bidding phase, only for prevailing wage obligations to increase actual project costs later on.
Senate Bill 996 would:
- Require all RACP project bids to include prevailing wage calculations from the outset;
- Close loopholes that allow projects to avoid prevailing wage by dividing work into separate contracts or phases at the same site;
- Ensure greater transparency and fairness in the project selection process;
- Protect local jobs and workers’ wages;
- Help prevent cost overruns that lead to unnecessary requests for additional state funds.
“This legislation is about protecting wages, supporting local jobs, and making sure public money is spent responsibly,” said Senator Pisciottano. “When the Commonwealth invests in economic development, we should expect projects to comply with the law and treat workers fairly from the start. We can’t afford a system that rewards bad actors and penalizes honest contractors.”
The RACP program provides critical state funding for regional economic, cultural, civic, and historical projects across Pennsylvania. These investments are intended to boost long-term economic growth and job creation, but Senator Pisciottano says they must also reflect the state’s values on labor rights and fiscal accountability.
“We’re talking about real people, real wages, and real jobs,” he added. “When public dollars are on the line, Pennsylvania workers and taxpayers deserve a process that’s fair, transparent, and grounded in law.”
In the PA House, Representative David Madsen (D-Dauphin) has introduced House Bill 1896, companion legislation to Senate Bill 996. Together, Pisciottano and Madsen are working to advance a unified effort to improve how RACP dollars are awarded and spend across the Commonwealth.