Our partners at the Vermont Chamber are keeping a close eye on developments at the State House and shared this brief update.
With several weeks still remaining in the legislative session, there is still time for lawmakers to move forward on policies aimed at improving affordability, supporting workforce growth, and strengthening Vermont’s economy. The Vermont Chamber team continues to be present at the State House each day, advocating for Vermont employers and working toward practical solutions that support the business community.
A couple of the issues they’re tracking this week include:
Below you will find more valuable information and links to other bills under consideration. We appreciate the Vermont Chamber keeping us informed and advocating on behalf of businesses across the state.
- Career and Technical Education (CTE): The Senate Education Committee unanimously advanced S.313, a bill outlining legislative intent to establish governance models, expand access to CTE programs, align graduation credits, and integrate adult education.
- Act 250: The Senate Natural Resources committee unanimously advanced S.325, a bill that would make amendments to 2024’s Act 181 including moving interim exemptions to 2030, delaying the road rule until 2030, and delaying the implementation of tier 3 until July 2028. The bill now moves to the Senate Appropriations for further consideration.
- School Budgets: The House Ways and Means Committee heard updated school budget statistics following Town Meeting week, showing that 36 of the 102 passed school budgets increased by more than 6 percent. Changes in federal funding, rising healthcare costs, and overall price increases continue to highlight the structural spending pressures facing Vermont’s education system.
- Relocating Revenue: The House Ways and Means Committee continues to weigh options to address funding shortfalls in both the Education and Transportation Funds. A proposal would shift a portion of the Vehicle Purchase and Use Tax to the Transportation Fund while moving part of the Sales and Use Tax to the Education Fund to maintain level funding during the transition, helping stabilize transportation revenue as broader education spending reforms remain necessary.
- Primary Care: The Senate Health and Welfare Committee unanimously advanced S.197, a bill aimed at increasing the use of primary care to reduce strain on hospital systems. This step toward long-term healthcare cost containment now moves to the Senate floor.
- Reference Based Pricing: The Senate Health and Welfare unanimously advanced S.190, a bill continuing momentum towards health care cost containment efforts by increasing price transparency and moving the Green Mountain Care Board closer to implementation of reference-based pricing. The bill now moves to the Senate Floor.
- Parental and Family Medical Leave: The House General and Housing committee reviewed but declined to advance H.459, which have would have prohibited the concurrent use of Workers Compensation and Parental and Family Medical Leave. By not advancing the bill before the crossover deadline, the committee preserved existing policies that support job protection timelines, return-to-work planning, and staffing predictability for employers.
- Water Connections: The Senate advanced S.212, a bill aimed at streamlining the wastewater connections permitting process and enhancing coordination of municipal and state-level permitting systems. This measure would help reduce timelines and increase the efficiency of new development projects and now moves to the House.
- Economic Development: The Senate Economic Development, Housing, and General Affairs committee unanimously advanced S.327, a bill that invests in further funds for the downtown center tax credit, business support services and studies, removes the VEGI sunset, and establishes task forces to study potential for a new culinary institute and an interstate highway alternative to Route 22A.
- Event Permitting: The Senate Economic Development, Housing, and General Affairs Committee unanimously advanced S.278, a bill that would establish cannabis event permits modeled after alcohol event permits, allow retailers to sell higher quantities, and repeal integrated license provisions. The bill now moves to the Senate Floor.
- Tax Classification: The House Ways and Means committee continued work on expanding property tax classifications from two to three categories. Final edits and a vote are expected by the end of next week.
- Education Misses the Mark: With the policy crossover deadline now past, House and Senate Education committees failed to advance meaningful education reform on the timeline established in Act 73 last year. Despite having nine legislative weeks to act following a taxpayer- funded summer task force, the committees will now seek special permission to continue work beyond the deadline as pressure mounts to address rising education costs and system reform.
- Education Spending: The Senate Finance Committee on a 5-2 vote advanced S.220. The bill would limit how much school districts can increase per-pupil education spending in FY2028 and FY2029 by establishing an allowable growth rate tied to prior year spending, an approach intended to slow education cost growth and reduce the number of districts triggering the excess spending penalty. The bill now moves to the Senate Floor.
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