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2025 Ushers in New Laws and Tax Changes Across America

The new year brings a wave of legislative changes across the United States, impacting everything from personal income taxes to gas prices and parental rights. While some states welcome tax cuts, others brace for new regulations and increased costs.

New York

Starting January 5th, New York City implements its controversial congestion pricing plan, charging drivers entering Manhattan below Central Park an estimated $9 toll. This move has sparked outrage among many residents concerned about the financial burden.

Additionally, New York joins other states in banning travel-sized toiletries in hotels, aiming to reduce plastic waste.

California

Californians will see a slight increase in disability insurance withholdings from their paychecks, resulting in approximately $8 less per month in net pay. More significantly, new regulations are projected to increase gas prices by as much as 90 cents per gallon, potentially costing drivers an extra $900 annually. Furthermore, the newly enacted SAFETY Act (AB-1955) prohibits schools from requiring parental notification if a child changes their gender identity.

Other States

Colorado expands health insurance coverage to pregnant individuals regardless of immigration status. Delaware mandates abortion access and insurance coverage for the procedure at state colleges. The District of Columbia bans right turns on red and introduces bird-friendly building regulations. Minnesota prohibits binary triggers on personal firearms. Rhode Island moves forward with a ban on flavored vape products, despite ongoing litigation. Vermont's Global Warming Solutions Act sets ambitious emissions reduction targets, while Oregon divests from coal-related investments.

Minimum Wage Increases

Several states, including Washington, Connecticut, and California, are raising their minimum wage to $16 or higher. Rhode Island, Maine, Illinois, and Vermont also see increases, while many others retain the federal minimum wage of $7.25.

Pennsylvania: A Case Study in Divided Government

In Pennsylvania, a divided government resulted in the failure of several proposed laws, including a clean energy standard, assault weapons ban, and repeal of the state's Stand Your Ground law. Republicans celebrated these legislative defeats, highlighting their efforts to prevent Pennsylvania from "becoming like California." However, they also expressed frustration over the failure of bills addressing the East Palestine train derailment and withdrawing Pennsylvania from the Regional Greenhouse Gas Initiative (RGGI).

Guns on display

Handguns (Getty)

welcome to Pennsylvania sign

(Charlie Creitz)

a pile of cash

(iStock)