The House passed H.493, the FY26 budget bill appropriating $9 billion. The budget as passed includes investments in housing, workforce, and infrastructure that echo many of the Vermont Chamber’s priorities. However, several important economic development tools were not fully funded, creating gaps that could impact business growth and workforce attraction in the years ahead. As the budget moves over to the Senate, there will be further opportunities to address these gaps.

 Key Investments That Support Vermont’s Economy

• $7.5 million for the Vermont Housing Finance Agency Rental Revolving Loan Fund to support innovative housing finance models.
• $7.5 million for the Vermont Bank Infrastructure Sustainability Fund, providing a new funding source for community’s infrastructure needs.
• $10 million for the Middle-Income Homeownership Development Program, helping address the financial gap needed to develop middle income housing, long support by the Vermont Chamber.
• $2 million in base funding for the Manufactured Home Improvement and Repair (MHIR) Program, securing ongoing funding for an essential segment of Vermont’s housing stock.
• Funding for Advance Vermont, a key workforce initiative focused on upskilling and education-to-career pathways.
• Investment in the Vermont Professionals of Color Network, bolstering the organization’s workforce retention and recruitment efforts statewide.
• 3% base increases for UVM, VSAC, and Vermont State Colleges, supporting the state’s talent pipeline and higher education system.
• $650,000 in base funding to Sheriffs to restore vacancy savings, allowing transport deputy positions to be filled
• $650,000 in base funding to the State’s Attorneys to restore vacancy savings

Unmet Needs

• The Vermont Housing Incentive Program (VHIP) received $4.15 million in one-time funds, but its future remains uncertain as it wasn’t included in the base budget.
• No additional funding was provided for relocation assistance through the Grants for Relocation Outreach Work Program, a program intended to support local, regional, county, and statewide organizations conducting new resident relocation, recruitment, and retention activities.

 Sustained, strategic investments remain critical to building a resilient economy. The Vermont Chamber will continue working to ensure that policies and investments promote long-term economic stability, business competitiveness, and bring Vermont towards a future of growth and abundance.