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Issue Updates from the State House | Week of April 27, 2026

May 1, 2026

Issue Updates from the State House

Week of April 27, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community.

Tax Conformity: The Senate advanced H.933, voting down a floor amendment that would have attached a high-income earner and investments tax proposal and had broad implications for business owners. The bill now returns to the House.
Data Privacy: The Vermont Chamber testified before the House Commerce and Economic Development Committee on Draft 2.3 of S.71, outlining clear opposition to the current version while reaffirming support for the Senate-passed bill and openness to updates from what Connecticut passed in 2025 during the 14 months since House receipt. This position is reinforced by a sign-on letter from more than 100 Vermont businesses and organizations urging a balanced, regionally consistent approach.
Act 250: S.325 advanced out of House Environment with significant changes to Act 181, including repealing Tier 3 and the road rule, but shortening interim Act 250 housing exemptions from 2030 to 2028. This new version will also create a joint legislative oversight committee and initiate a Vermont Council on Rural Development–led public engagement process on future land use policy.
Yield Bill: On a 28-2 vote the Senate advanced H.949 with an average property tax increase of 3.8% using all available onetime funds, compared to the House-passed 7% increase using half those funds. The bill now returns to the House, where a conference committee made up of legislators from both chambers is expected to reconcile differences between the House and Senate versions of the bill.
Budget: On a 23-7 vote the Senate advanced H.951, approving a $9.4 billion budget with additional investments in economic development and housing programs. The bill now returns to the House, where a conference committee made up of legislators from both chambers is expected to reconcile differences between the House and Senate versions of the budget.
Health Care Savings: The House Health Care Committee continued review of S.190, debating the pace of hospital reimbursement rate reductions and whether resulting savings should be limited to Qualified Health Plan (QHP) enrollees or distributed broadly across all insurance markets. As health care affordability remains a growing concern, these decisions will be critical in determining whether cost relief reaches the full commercial market.
Economic Development: The House advanced S.327, maintaining momentum on key workforce priorities and new business support tools, but also maintaining the $5 million reduction in annual allocations to the Vermont Employment Growth Incentive. The bill now returns to the Senate.
Cannabis: The House Government Operations Committee reviewed S.278, examining the potential impacts of expanding access to cannabis and exploring ways to strengthen the legal retail market. Discussions will continue as the committee works to balance the growth of the industry with appropriate regulatory structures.
Tax Classifications: The Senate Finance Committee reviewed H.955, focusing on provisions establishing a future third tax classification and clarifying that commercial apartment buildings would fall under the non-second home category.
Wetlands: The Legislative Committee on Administrative Rules began reviewing proposed wetlands rules updates aimed at supporting compact, affordable housing development while aligning with Vermont’s environmental and economic goals. The Vermont Chamber submitted comments in support, and testimony from the Agency of Natural Resources provided data-informed insights driven by the Vermont Competitiveness Dashboard and the Vermont Business Climate Survey.
Housing: The House General and Housing committee advanced S.328, adding an annual report on the Vermont Housing Improvement Program to track effectiveness over time and retaining key funding mechanisms and programs to support housing production.
Sister State: The Senate Appropriations Committee advanced H.674, concurring with the Senate Economic Development, Housing, and General Affairs Committee and the House-passed version of the bill. The bill now moves to the Senate floor.
Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee advanced H.512, adding exemptions for independent venues with seating capacities under 3,000 and for nonprofit venues hosting fairs, exhibitions, or community events. These changes provide added flexibility for venues, and the bill now moves to the Senate Floor.
Water Connections: The House Environment Committee advanced S.212, helping reduce delays and costs associated with permitting and development processes. The bill now moves to the House Ways and Means Committee
Bottle Bill: The Senate Natural Resources and Energy Committee continued work on H.915, considering changes to incentives for automated redemption machines, increased handling fees, and modifications to the structure of the proposed producer responsibility organization. If advanced, this bill could increase costs for beverage distributors.
Non-Compete: The House advanced S.230, returning the bill to the Senate Economic Development, Housing, and General Affairs Committee where members reviewed changes and signaled interest in replacing employee classification framework with a salary cap that could expand impacts beyond the House-passed version.
Healthcare Reform: The Senate Finance Committee reviewed but took no action on H.585, a bill that would allow Association Health Plans in 2028 contingent on federal changes, potentially expanding options for businesses facing high costs. With only two weeks remaining of the session and slow progress to date, the bill risks stalling without immediate action.
Aviation Day: The House and Senate Transportation Committees and the Commerce and Economic Development Committee heard from local airports and aerospace industry leaders about the important impact the aviation industry has on Vermont’s economy, driving innovation, manufacturing, and tourism.
Net Metering: The House Energy and Digital Infrastructure Committee heard testimony on the state of net metering, focusing on solar affordability and how reforms could shift costs between solar users and ratepayers. While action this session is unlikely, as the Public Utilities Commission continues its rate update process, the issue is expected to return next year.

May 1, 2026

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April 29, 2026

Omnibus Economic Development Bill Advances Through Key Committees

April 24, 2026

Omnibus Economic Development Bill Advances Through Key Committees

S.327, a comprehensive economic development and workforce bill, was voted unanimously out of both the House Commerce and Economic Development Committee and the House Ways and Means Committee and is expected to be voted on the House floor next week. With the session entering its final stretch, S.327 is emerging as the primary vehicle for economic development policy this year and will return to the Senate following House action.

The legislation reflects a mix of progress and gaps, when measured against priorities identified through the Vermont Chamber’s policy retreats with manufacturers, tourism leaders, and legislators, as well as the data driven recommendations developed from the Vermont Futures Project’s Economic Action Plan and Competitiveness Dashboard.

Key sections of the bill include:

Business Resources and Growth
- Directs the Department of Economic Development to inventory public and private resources available to businesses identify gaps and improve how those tools are communicated to businesses
- Aligns with the Vermont Chamber’s priority to improve outreach and coordination of existing programs, addressing a consistent challenge identified by employers.
Convention Center Task Force
- Extends the timeline and expands membership of the task force studying a statewide convention center and performance venue.
- Continues broader tourism infrastructure discussions, though remains exploratory.
Vermont Employment Growth Incentive (VEGI) Revisions
- Repeals the program sunset but reduces annual allocation cap on incentives from $10 million to $5 million.
- While it provides long-term certainty for VEGI, it reduces a key tool for attracting and retaining business investment without adding a program aligned with current needs.
Culinary and Hospitality Education Study
- Requires a study on rebuilding Vermont’s hospitality workforce pipeline following the closure of the New England Culinary Institute.
- Directly reflects priorities identified through engagement with the tourism industry.
Hospitality and Culinary Apprenticeship Pilot
- Establishes a two-year, multi-employer apprenticeship pilot for the accommodation and food services sector.
- Strong alignment with employer driven solutions to strengthen workforce pathways in a critical sector.
Rural Industry Development Grant Program
- Codifies the program in statute to support business expansion, relocation, and redevelopment.
- Advances broader goals of supporting regional economic growth.
Nickel Rounding for Cash Transactions
- Allows businesses to round cash transactions to the nearest five cents with required notice.
- A technical change providing operational flexibility.
Commercial Property Assessed Clean Energy (C-PACE)
- Establishes a framework for municipalities to create C-PACE districts, enabling access to private financing for energy efficiency and resiliency projects
- Supports business investment in infrastructure and long-term cost management.

S.327 advances several priorities shaped by direct employer engagement, particularly in hospitality workforce development and improving access to business resources. These elements reflect ongoing efforts to better align state programs with employer needs and workforce realities.

The bill also leaves key priorities unaddressed. It does not include reforms to improve permitting and regulatory coordination, which remain among the most frequently cited barriers to business investment. In addition, it does not advance policies to support automation and productivity, both of which are critical in a constrained labor market.

The most significant concern is the direction of the VEGI changes. While the program remains in place, reducing its scale without introducing a modernized alternative limits Vermont’s competitiveness at a time when the state continues to lag behind peer states in economic momentum.

As the bill moves to the House floor next week, attention will focus on final House action before negotiations with the Senate. S.327 represents a meaningful step on several workforce and development priorities, but also highlights the continued need for a more comprehensive approach to economic competitiveness in Vermont.

April 24, 2026

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Issue Updates from the State House | Week of April 20, 2026

April 24, 2026

Issue Updates from the State House

Week of April 20, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community.

Housing: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.775, continuing discussions on the off-site construction pilot program, report timelines, and balancing funding with permitting priorities. It remains uncertain which of the two housing bills advanced this session will move forward as the vehicle to incorporate shared provisions.
Bottle Bill: The Senate Natural Resources and Energy Committee reviewed amendments to H.915, establishing a temporary funding mechanism for moving towards a Producer Responsibility Organization and increasing handling fees on beverage distributors The short-term funding is expected to fall short of the costs required for implementation, while higher handling fees could increase operational burdens across the system.
Act 250: The House Environment Committee began work on amendments to S.325, repealing the road rule and tier 3 from Act 181. The bill will add a study on protecting natural resources and create a new oversight committee to deal with increasingly problematic regulatory processes.
Education: The Senate Education and Senate Finance Committees began reviewing H.955, addressing both policy and funding components of the bill. With limited cost savings in the House-passed version and three weeks remaining, the bill falls to the Senate to ensure meaningful education finance reform.
Mileage Based User Fee: Legislative Committees reviewed changes to H.944, the omnibus transportation bill that would advance a phased-in mileage-based user fee beginning at 1.4 cents per mile for electric vehicles in 2027, with potential expansion to most vehicles by 2031. While ensuring sustainable transportation funding is critical, broader discussions around new fees highlight the need to also address underlying statewide spending challenges.
Vocational Rehabilitation: The House Commerce and Economic Development Committee advanced S.173, which includes additional education for injured employees and a working group to evaluate potential improvements. This approach maintains program stability while laying groundwork for future enhancements. The bill now moves to the House Floor.
Water Connections: The House Environment Committee continued work on S.212, adding streamlined general permits for subdivision of empty land and boundary adjustments. These changes could help reduce delays and costs associated with permitting processes, making development more efficient.
Career Technical Education (CTE): The House Commerce and Economic Development Committee advanced S.313, adding additional considerations for student access and transportation. While making few structural changes, the bill queues up alignment with broader reform and moves toward aligning workforce training with industry needs. The bill now moves to the House Education Committee.
Sister State: The Senate Economic Development, Housing, and General Affairs Committee advanced H.674, concurring with the House-passed bill. The bill now moves to the Senate floor.
Alcohol: The Senate Economic Development, Housing, and General Affairs Committee advanced H.921, adding a requirement that malt beverage manufacturers maintain records of distribution and sales under expanded self-distribution allowances. The bill now moves to the Senate floor.
Yield Bill: The Senate Appropriations Committee advanced H.949, allocating $100.9 million in one-time funding for a significant property tax buydown and bringing the average increase to 3.8%. While this approach lowers short-term property tax increases, it relies on anticipated education cost savings that have yet to be realized. The bill now moves to the Senate Floor
Tax Conformity: The Senate Appropriations advanced H.933, preserving the language used by the Senate Finance Committee to make targeted updates to Vermont’s tax code, including provisions to enhance the state’s research and development environment. The bill now moves to the Senate Floor.
Budget: The Senate Appropriation and Finance Committees advanced H.951, funding a $9.4 billion budget and investing additional onetime funds in additional economic development programs, including the Rural Industrial Development Program, the Small Business Law and Development Centers, and the first generation homebuyer program. These changes reflect thoughtful investments in programs that align efficient spending with growth opportunities. The bill now moves to the Senate Floor
Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee reviewed a new draft of H.512, clarifying definitions of ticket resellers, and adding a 2028 sunset to the regulation as a check back mechanism to ensure effectiveness.
Franchise Agreements: The Governor signed into law H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. This new regulation will take effect January 1, 2027.
Non-compete: The House General and Housing Committee advanced S.230, creating distinctions between exempt and nonexempt employee non-compete contracts and banning non-competes for non-exempt employees starting on July 1^st. The bill now moves to the House Floor

April 24, 2026

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Issue Updates from the State House | Week of April 27, 2026

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Economic Momentum in Focus as Lawmakers Examine Vermont’s Competitive Position

April 24, 2026April 24, 2026

Economic Momentum in Focus as Lawmakers Examine Vermont’s Competitive Position

Vermont’s economic competitiveness took center stage in the House Ways and Means Committee this week as lawmakers listened to the Vermont Futures Project present findings from its Competitiveness Dashboard. The dashboard is a compilation of national and regional research, illustrating data sets that provide a clear picture of how Vermont compares to other states and highlights trends shaping the state’s economic performance.

The most striking data point of the research is Vermont ranks 51st in economic momentum, a measure that evaluates population trends, employment growth, business formation, and overall economic performance relative to other states. The ranking reflects a combination of indicators that, taken together, point to a slowing trajectory in key areas that drive long-term growth.

In presenting the data, Vermont Futures Project Executive Director Kevin Chu emphasized these findings are not based on a single metric, but rather a consistent pattern across multiple measures. Vermont is currently the only state experiencing both natural population decline and negative net migration, while also ranking near the bottom in business formation and employment growth. These trends are further compounded by challenges related to cost of living and overall economic competitiveness.

A key theme from the presentation was the importance of focusing on the foundational elements that support economic growth. Housing availability and workforce supply continue to be central constraints. Maintaining a stable population requires sufficient housing to meet changing needs, and expanding the workforce depends on the state’s ability to attract and retain residents.

The data also highlights the broader competitive landscape. Other states are actively investing in strategies to attract talent, support business growth, and expand economic opportunities. In that context, Vermont’s ability to build economic momentum depends on how effectively it aligns its policies and investments to support those same goals. Currently these goals seem unattainable, as the Committee continues to evaluate tax policy proposals that would add barriers to improving Vermont’s economic competitiveness.

While there are no single solutions to these challenges, the Futures Project’s findings reinforced that improving competitiveness will require a coordinated approach. Aligning housing, workforce development, regulatory predictability, and overall economic policy will be essential to supporting sustainable growth and strengthening Vermont’s position in a competitive national environment. As policymakers continue to evaluate proposals, including changes to tax policy, grounding those decisions in data and a clear understanding of the state’s economic trajectory will be critical to building long-term economic momentum.

April 24, 2026

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Help Shape Vermont’s Business Climate

April 17, 2026

Help Shape Vermont’s Business Climate

We are gathering input from Vermont businesses to identify the most challenging regulations, opportunities for improvement, and ways state policy can better support a predictable, competitive business climate.

Take this one-minute survey to share your perspective. Your input will directly inform our advocacy.

Vermont Chamber of Commerce Mini Survey – Regulations – Fill out form

April 17, 2026

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Issue Updates from the State House | Week of April 13, 2026

April 17, 2026April 17, 2026

Issue Updates from the State House

Week of April 13, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community.

Paid Family Leave: The House General and Housing Committee took testimony on the roll out of the state’s voluntary Paid Family Medical Leave Insurance program and heard from paid leave advocates on their push to create an expansive state mandatory program, funded through a payroll tax.
Economic Development: The House Commerce and Economic Development Committee continued work on S.327, adding additional meetings for the convention center task force and establishing a hospitality and culinary apprenticeship pilot. The Vermont Chamber is named as a stakeholder in the pilot, which could help support the state’s hospitality industry.
Commercial Property Assessed Clean Energy: The Vermont Chamber testified in the House Commerce and Economic Development Committee on S.138, a bill that would expand Vermont’s PACE program and enable businesses to finance efficiency, renewable, and resilience improvements. The committee amended language to allow lenders to also administer the program, aiming to reduce barriers and improve adoption.
Non-Compete: The House General and Housing Committee introduced non-compete regulation language to S.230, creating distinctions between exempt and nonexempt employee non-compete contracts. As discussions continue, additional testimony will be needed to ensure the proposal achieves its intent without creating broader unintended impacts.
Tax Conformity: The Senate Finance committee advanced H.933 after a week-long review of the targeted updates the bill makes to Vermont’s tax code, including provisions to enhance the state’s research and development environment. The bill now moves to the Senate Appropriations Committee.
Act 250: House Environment Committee continued in-depth review of S.325, considering amendments to repeal the road rule and Tier 3 category. These changes recognize the broken process in the roll out of Act 181, impacting rural landowners across Vermont.
Yield Bill:
The Senate Finance Committee advanced H.949, allocating additional funding for a larger buydown than advanced by the House and bringing the Senate far closer to the Governors recommendation, setting the average property tax increase to 3.8%. The amendment also reduces excess spending thresholds from 118% increases to 112%, and banks on education cost savings in future years to prevent large future rate hikes.
Career Technical Education (CTE): The House Commerce and Economic Development Committee continued work on S.313, adding a study on streamlining educator requirements to improve access while maintaining instructional quality. As the bill moves closer to advancement, progress continues towards aligning workforce training with statewide industry needs.
Education: The House advanced H.955 following a closely contested debate on the Floor, approving a bill that relies on voluntary alignment and mergers. With significant departure from the Governor’s proposal, this debate will continue.
Alcohol: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.921, considering removal of the proposed 2028 sunset on small brewer self-distribution for amounts under 3,000 barrels.
Vocational Rehabilitation: The House Commerce and Economic Development Committee reviewed a new draft of S.173, replacing proposed program changes with the creation of a working group to evaluate potential improvements to the vocational rehabilitation system. This approach maintains current program stability while laying groundwork for future efficiency and effectiveness enhancements.
Polyfluoroalkyl Substances (PFAS): The House Agriculture Committee reviewed H.911, a bill that would prohibit pesticides and pesticide packaging containing PFAS. While specific language is still under development, potential for broader PFAS definitions could increase compliance costs for manufacturers whose processes may already be subject to regulation.
Wetlands: The House Environment Committee reviewed a proposed amendment to S.223 focused on targeted wetlands permitting reform to support housing development in designated growth areas. While the amendment faces strong headwinds, continued streamlining of regulatory processes remains vital for housing growth and affordability.
Building Energy Code: The Senate Natural Resources and Energy Committee began review of H.718, hearing concerns related to funding limitations, enforcement authority, and the need for expanded workforce training resources. Continued focus on supporting the building community will be necessary as discussions continue.
Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.512, considering exemptions for noncommercial sellers and adding a potential sunset clause to ensure the bill is targeted, effective and can be reevaluated after implementation.
Sister State: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.674, maintaining quarterly meetings of the sister state council, leveraging existing state relationships, and considering U.S. and state sanctions lists in the vetting process.
Public Safety: The Senate advanced H.410, a bill that redefines recidivism to support more efficient judicial processes and quicker access to services. The bill now moves to the Governor’s Desk for consideration.

April 17, 2026

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S.325 Testimony Reflects Rising Concern Over Act 181 Implementation

April 10, 2026

S.325 Testimony Reflects Rising Concern Over Act 181 Implementation

The House Environment Committee spent the week taking extensive testimony on S.325, hearing from a wide range of stakeholders. A clear theme emerged: growing concern with how Act 181 is being implemented.

While S.325 to date has focused on timing and technical fixes, the conversation quickly shifted to broader issues of trust, process, and how land use decisions are experienced on the ground.

Act 181 was designed as a collaborative, bottom-up effort, but testimony highlighted a disconnect between that intent and a more top-down implementation, particularly in rulemaking and mapping, where stakeholders were considered only advisory and public engagement happened too late. These conversations ultimately raised further questions regarding land use decisions.

In testimony this week, the Vermont Chamber supported key elements of S.325 that support greater clarity and stability in implementation, including:

Maintaining interim housing exemptions to avoid disruption
Improving clarity and predictability in Act 250 jurisdiction
Continuing progress on Tier 1 designations

The Vermont Chamber supported provisions in S.325 that improve clarity and stability, including maintaining interim housing exemptions, clarifying Act 250 jurisdiction, and advancing Tier 1 designations. At the same time, concerns centered on the role and approach of the Land Use Review Board.

Testimony also signaled a shift in thinking, extending timelines to fix the broken process may no longer be enough to rebuild trust. Alternatives discussed included moving away from the current tiered mapping approach, expanding community-driven engagement outside of the land use review board, and refocusing the Land Use Review Board on consistent, predictable Act 250 administration.

As part of that discussion, a different path forward was raised:

Stepping away from the tiered mapping approach and rulemaking under the Land Use Review Board
Establishing a broader intentional community engagement effort to answer the questions at the core of protecting natural resources through a trusted community development organization
Refocusing the Land Use Review Board on administering Act 250 to ensure a process that is predictable, fair, and timely statewide

S.325 is no longer strictly a technical bill—it has become a focal point for a broader conversation about land use, implementation, and trust in Vermont.

April 10, 2026

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If Decisions Don’t Get Made

April 10, 2026

If Decisions Don't Get Made

As the legislative session nears adjournment, attention is on what will pass—the budget, the yield bill, the final numbers. But a more consequential question is: what if they don’t?

The impacts aren’t theoretical. Without a signed budget, Vermont risks partial shutdowns, disrupted payments, and long-term credit effects. Without a yield bill, default property tax rates could trigger sharp increases—42.4% for nonhomestead and 13.7% for homestead, about $325 million more than needed for the Education Fund and leaving school districts, employers, and property owners without legislative adjustment to these costs.

This uncertainty doesn’t stay in Montpelier. It stalls planning, delays hiring, and pauses investment—not from lack of will, but lack of clarity. Timing matters. Early decisions create stability; late ones create pressure; no decision creates uncertainty—compounding Vermont’s fiscal and affordability challenges.

These bills are also signals—about alignment, decision-making, and predictability. Over time, those signals shape whether businesses expand, invest, or look elsewhere. The final days of session aren’t just procedural—they influence confidence in Vermont’s economic environment.

It is important to focus on what policy decisions mean in practice—connecting them to real business impacts and advancing a more predictable, affordable future. The budget and yield bill will pass. The question is how: on time with clarity, or late with ripple effects beyond Montpelier.

April 10, 2026

CONNECT WITH OUR TAX EXPERT

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Issue Updates from the State House

Week of April 6, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community.

Tax Conformity: The Senate Finance Committee reviewed H.933, a bill making several targeted changes to the state’s tax code. As this bill progresses, the creation of a competitive, predictive tax environment would be ideal for Vermont’s businesses.
Commercial Property Assessed Clean Energy (C-PACE): The House Energy and Digital Infrastructure Committee advanced S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings. The bill’s language now moves to the House Commerce Committee for inclusion in S.327.
Economic Development: The House Commerce and Economic Development Committee reviewed omnibus economic development bill S.327. The committee is considering an amendment that would increase accessibility to funding available through the Rural Industrial Development Program, to help rural business relocation and expansion.
Vocational Rehabilitation: The House Commerce and Economic Development Committee continued review of S.173, a bill proposing modifications to Vermont’s vocations rehabilitation program Maintaining effective prescreening and improving the efficiency of rehabilitation plans must remain key priorities as discussions continue.
Housing: The House General and Housing Committee revised S.328, taking language from House and Senate housing bills and beginning the process of merging the two bills. While the bill advances key housing initiatives, provisions related to multiunit development have been separated for further consideration in the House Environment Committee and still face additional challenges.
Nickel For Your Thoughts: The House Commerce and Economic Development Committee continued testimony on H.837, a bill allowing businesses to voluntarily round cash transactions to the nearest five cents in response to reduced penny circulation. Final details around consumer notice are still being refined by the Committee.
Franchise Agreements: The Senate advanced H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. The bill now moves to the Governor’s desk.
Career Technical Education (CTE): The House Commerce and Economic Development Committee considered a new draft of CTE bill S.313 that would require acceptance of CTE credits toward graduation and begin updating the state’s CTE system. While not a complete solution to the challenges facing CTE centers, the proposal represents a strong improvement toward aligning workforce training with industry needs.
Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued to review H.512. Ongoing discussions focused on refining the resale cap structure, addressing potential loopholes, and ensuring enforceability.
Association Health Plans: The Senate Finance Committee continued testimony on H.585, which could allow Association Health Plans beginning in 2028 and expand coverage options for businesses facing high costs. Testimony has shown strong support for AHPs, while broader discussions continue to shape the debate.
Primary Care: The House Health Care Committee reviewed S.197 which aims to increase use of primary care to reduce strain on hospital systems.
Sister State: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.674, a bill establishing a formal process for creating additional Vermont Sister State relationships to strengthen international engagement. Discussion emphasized the importance of a centralized vetting process and prioritizing mutually beneficial partnerships.
Wastewater: The House Environment Committee reviewed S.212, which streamlines wastewater permitting and improves coordination between municipal and state systems to reduce timelines and support development efficiency.
Bottle Bill: The Senate Natural Resources Committee continued testimony on H.915, a bill that establishing an extended producer responsibility program that would significantly increase obligations for beverage container manufacturers, distributors, and retailers.

April 10, 2026

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Issue Updates from the State House

Week of March 30, 2026

A weekly snapshot of key legislative activity impacting Vermont’s business community.

Cash Transaction Rounding: The Vermont Chamber testified in the House Commerce and Economic Development Committee on H.837, a bill that would allow businesses to voluntarily round cash transactions to the nearest five cents with appropriate consumer notice recognizing the challenges that will inevitably arise with the phaseout of the penny.
Extreme Temperatures: Following extensive testimony, the House General and Housing Committee paused discussion on the “extreme temperature” workplace proposal in S.230 to engage further with VOSHA. While temporarily slowed, the proposal is expected to resurface soon.
Commercial Property Assessed Clean Energy (C-PACE): The Vermont Chamber testified in the House Energy and Digital Infrastructure Committee on S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings, allowing businesses to finance efficiency, renewable, and resilience improvements through long-term, fixed-rate property assessments.
Housing: The House General and Housing Committee reviewed S.328, the Senate-passed housing bill. With overlap between S.328 and the House-passed H.775, the Committee now must consider which parts of each bill will result in the most efficient path towards housing growth.
Association Health Plans: The Senate Finance Committee began testimony on H.585, which would allow Association Health Plans in 2028 contingent on federal changes and initiate a study on impacts to Qualified Health Plans. These plans could expand options for businesses facing high costs, with further evaluation underway.
Act 250: The House Environment Committee began testimony on 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.
Reference Based Pricing: S.190, a bill continuing momentum toward health care cost containment efforts by increasing price transparency and moving the Green Mountain Care Board closer to implementation of reference-based pricing, has advanced to the House Health Care Committee.
Budget: The Senate Appropriations Committee reviewed H.951, the House-passed FY27 budget totaling $9.3 billion. Following a divided House vote, the bill reflects a mix of targeted investments and ongoing funding gaps, underscoring the need for efficient, high-impact spending to support affordability and long-term economic stability..
Primary Care: The House Health Care Committee reviewed S.197, a bill aimed at increasing the use of primary care to reduce strain on hospital systems. Discussions included spending targets, opportunities for regional collaboration to improve efficiency, and potential payment reform through alternative models to support long-term affordability.
Health Care Affordability: The House Health Care Committee reviewed H.433, a bill that would move the state closer to a universal primary care system at the expense of an additional payroll or income tax, shifting, rather than reducing the cost of health care in Vermont.
Alcohol: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.921, a bill expanding alcohol service options, including larger serving sizes, more flexible locations, shorter notice periods for tasting permits, and increased direct distribution opportunities. While the proposed changes could enhance industry competitiveness, the Committee raised concerns regarding implementation and potential market impacts.
Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.512, legislation aimed at curbing excessive resale of event tickets and strengthening consumer protections for venues using online ticketing platforms. The Committee continues to evaluate whether a resale price cap is necessary and enforceable.

Education: The House Education Committee advanced its education reform bill on a partisan vote of 7-4. The bill diverts from last year’s Act 73, instead taking voluntary approach that expands the use of Cooperative Educations Service Areas rather than reducing supervisory districts, and targets efficiencies by encouraging reduced duplicative services without mandating consolidation. The strategy ultimately relies on hope that voluntary alignment will deliver meaningful results.

April 3, 2026

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