Legislation requiring Philadelphia stores to charge a fee for paper bags passed Thursday with five ‘no’ votes, a rarity in a City Council that often approves bills with little or no formal opposition.
Council, during its weekly session, also introduced a resolution approving an initial budget for Mayor Cherelle Parker’s signature Housing Opportunities Made Easy, or H.O.M.E., initiative and put forward a proposed ballot question that would allow the city to set up a retirement plan for residents without access to the benefit through an employer.
Though many supermarkets already tack on a bag fee, current city regulations do not require it.
That is set to change, with retailers, grocery stores and other shops being mandated to charge at least 10 cents per bag, under a proposal shepherded by Councilmember Mark Squilla, author of the 2019 law that outlawed single-use plastic bags.
An exemption is incorporated into the legislation for paper bags used for delivery, drive-through and take-out food orders. Businesses would retain the revenue from the fee.
Representatives from the Parker administration reportedly testified against the bill at a recent hearing, asserting that the charge could disproportionately harm low-income residents and drive shoppers outside city limits.
A spokesperson for the Mayor’s Office declined to comment Thursday on whether Parker intends to approve; veto; or allow the measure to become law without her signature.
Council authorized the bill in a 10-5 vote, with Katherine Gilmore Richardson and Kendra Brooks absent. Twelve votes are needed to override a mayoral veto.
Member Anthony Phillips, of the 9th Council District, said he arrived at City Hall ready to support the legislation. But decided to vote “no” after considering the impact of Supplemental Nutrition Assistance Program benefits being withheld for November, as a result of the ongoing federal government shutdown.
“Our goal here in the city is to not give people more burdens, as much as possible,” Phillips said. “I’m in favor of what the bill intends, but there’s other ways that we can do to protect our environment.”
Squilla, who represents the 1st District, said organizations have been providing free reusable bags to Philadelphians and that similar regulations have proved effective at reducing single-use bags in other cities.
“The goal of this bill and legislation is to bring your own bag, not to charge you 10 cents for a bag,” he added. “It’s really a behavioral change of bringing your own bags to locations.”
Lawmakers took the first step in approving the first-year spending plan for the H.O.M.E. initiative, Parker’s effort to create or preserve 30,000 units of affordable housing over four years.
In June, as part of the budget process, Council approved the mayor’s request to borrow $800 million to support the approach. A resolution introduced Thursday lays out how nearly $195 million should be allocated over the initial 12 months.
The largest line item is about $35 million for the Basic Systems Repair Program, which covers free electrical, plumbing, heating, roofing and other home emergencies.
Council President Kenyatta Johnson told reporters that “some key things” were “tweaked” based on input from lawmakers, as compared to a draft plan that began circulating in early October. He said he personally advocated for funding for the Philadelphia Energy Authority’s Built to Last program.
Notably, the mayor’s preliminary budget reportedly incorporated $37.5 million in affordable housing preservation funds and $19.4 million for housing production. Those numbers have been adjusted to $29.6 million for preservation and $24.3 million for production.
Housing advocates and Council’s more progressive members have pushed to ensure that money is earmarked for those most in need; Parker, meanwhile, has stressed the importance of opening up programs for lower-middle and middle-income families.
“This isn't about locking anyone out of resources,” said 3rd District Councilmember Jamie Gauthier, who has joined activists in calls for prioritizing poor residents, in a statement. “It's about recognizing that if we do not help families who are one rent increase or unexpected maintenance cost away from homelessness stay in their homes today, taxpayers will foot an even higher bill when they end up living on the street tomorrow.”
Debate around income guidelines “still is a conversation,” Johnson said.
“It’s not a done deal as of yet,” he added. “We’re still doing our due diligence, still have the hearing process to go through.”
Angela Brooks, Parker’s chief housing and urban development officer, said in a statement that the administration is “pleased” that the budget was introduced and looks forward to working with Council. A hearing is tentatively scheduled for Nov. 12.
In the coming years, Philadelphia workers whose employers do not offer a retirement plan may be able to deposit money for later in life through a city-run program.
As currently contemplated, employees would be automatically enrolled to contribute between 3 and 6% of their paycheck, unless they opt out.
All businesses that have at least one worker and have operated for at least two years would have to facilitate their employees signing up the plan. Employers would not have to or be permitted to contribute to the plan.
Legislation setting up the program was first introduced in June; however, lawmakers were informed that a charter change – and thus, a ballot question – is necessary to create a board to oversee the retirement plan, officials said.
About 208,000 private-sector employees, or a third of the city’s workforce, do not have the option of a retirement account through their job, according to information provided by Council. Johnson said he believes the program could, in particular, benefit those in the restaurant industry.
If approved, the measure could go before voters in the May 2026 primary, and the June bill calls for the start of contributions in the summer of 2027.
