Healthcare

• 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. As the bill moves to the Senate floor, continued collaboration and attention to implementation details will be essential to turn these goals into practical outcomes.
• Act 250: The Senate Natural Resources committee unanimously advanced S.325, a bill that would make amendments to 2024’s Act 181 and allow more time to make technical corrections to the Act 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.
• Event Ticketing: The House advanced H.512, a legislation aimed at curbing excessive resale of event tickets and strengthening consumer protections for venues using online ticketing platforms. The bill now moves to the Senate for further consideration.
• Sister State Program: The House Appropriations committee unanimously advanced H.674, a bill that would remove the repeal of the Ireland Trade Commission and establish a process for establishing additional Vermont Sister States, strengthening Vermont’s international engagement and to fostering mutually beneficial relationships with governments outside the United States. The bill now moves to the House Floor.
• 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.
• Housing Solutions: The House Ways and Means committee advanced H.775, legislation aimed at promoting more efficient housing development and creating accountability for municipal housing targets. The bill now moves to the House Appropriations Committee for further consideration.
• 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. The Vermont Chamber is named in both task forces, and the bill now moves to the Senate floor.
• 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.
• Building Energy Code: The House Energy and Digital Infrastructure committee advanced on a 6-3 vote H.718, a bill that would create structural updates to Vermont’s residential building standards framework for residences with fewer than three dwelling units. The bill now moves to the House Appropriations Committee for further consideration.
• Commercial Property Assessed Clean Energy (C-PACE): The Senate Natural Resources and Energy committee unanimously advanced 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. 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.
• Housing Availability: The Senate Economic Development, Housing, and General Affairs committee on a unanimously advanced S.328, a bill that would fund important housing programs and study legal measures needed to require common interest communities to allow long term rentals, operation of family child care homes, and the building of accessory dwelling units on a homeowner’s property. The bill now moves to the Senate Floor.
• Noncompete: The House recommitted H.205, a bill broadly prohibiting non-compete agreements with limited exceptions, back to the House Commerce and Economic Development Committee. While the language could still reappear in other labor-related legislation later this session, the move represents a significant setback for the bill brought on by disparate treatment of business and educational settings.
• Franchises: The House Commerce and Economic Development Committee voted to unanimously advance H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. If voted out of committee, the bill will move to the House Floor.
• Healthcare: The House Health Care committee on a 8-3 vote advanced H.585. The bill retains the allowance of Association Health Plans in 2028 if Federal law changes but adds a study due in 2027 on potential impacts to the Qualified Health Plans. These plans could be an important option for businesses and entrepreneurs struggling with high costs and limited options. The bill now moves to the House Floor.
• Private Equity in Healthcare: The House Health Care committee is expected to vote later today on H.583, a bill regulating private equity in healthcare related private businesses. While the bill has improved since introduction, the Senate will need to consider the highly problematic provisions that persist relating to regulation and reporting requirements for privately owned businesses. The bill will move to the House Floor if advanced.

• Commerce Budget: The House Commerce and Economic Development Committee finalized its annual budget letter to Appropriations, outlining funding priorities across housing, workforce, and economic development. Key requests include continued support for VHIP, workforce training through Advance Vermont, the International Business Office, and expanded Downtown and Village Tax Credits to spur redevelopment. Several proposals include one-time funding components, particularly within housing, workforce, rural technical assistance, and economic development initiatives.
• Housing: The Senate Economic Development, Housing, and General Affairs Committee continued work on S.328, adding accessory dwelling units to the list of uses that must be permitted under homeowners association bylaws and reviewing the bill’s broader budget implications. As housing affordability and economic growth remain closely tied to population trends, securing and sustaining funding for these initiatives will be critical as budget negotiations advance.
• Housing Solutions: The House General and Housing Committee advanced H.775, legislation aimed at promoting more efficient housing development and strengthening access to residential health care services. The bill now moves to the House Ways and Means Committee for further consideration.
• Yield: The House Ways and Means Committee continues to weigh how much one-time funding to use to buy down this year’s property tax increase and whether relief will be split evenly between homestead and non-homestead properties. The Vermont Chamber is advocating for fiscal responsibility and equitable treatment to avoid shifting long-term burdens onto employers.
• Liquor Liability Insurance: The House Government Operations Committee heard testimony on language that would repeal the mandatory liquor liability insurance requirement. The proposal responds to ongoing instability in the national casualty insurance market, which has driven significant premium volatility in Vermont’s small and concentrated hospitality sector. Repeal would maintain existing civil liability and regulatory safeguards while restoring regulatory proportionality during a period of market disruption.
• Event Ticketing: The House Commerce and Economic Development Committee advanced H.512, legislation aimed at curbing excessive resale of event tickets and strengthening consumer protections for venues using online ticketing platforms. The bill now moves to the House Floor for further consideration.
• Culinary Institute Study: The Senate Economic Development, Housing, and General Affairs Committee continued work on S.327, adding a study to explore the creation of a culinary institute in Vermont. The Vermont Chamber is a named stakeholder. The proposal aligns with broader efforts to expand workforce pipelines and support long-term talent development in the restaurant and hospitality industries.
• Career and Technical Education (CTE): The House Commerce and Economic Development Committee reviewed draft legislation to reform Vermont’s CTE system in coordination with broader education changes. While timelines, funding, and governance structures remain in development, expanded access and improved alignment with graduation credits signal progress toward strengthening Vermont’s future workforce pipeline.
• Family Leave: The House General and Housing Committee continued testimony on H.459, which would prohibit certain employers from counting workers’ compensation leave toward Vermont’s family and medical leave requirements. The change would require these leave systems to run sequentially rather than concurrently. Adjusting how these programs interact carries implications for job protection timelines, return-to-work planning, and staffing predictability for employers.
• Health Care: The House Health Care Committee continued work on H.585, which proposes reforms to Vermont’s insurance structure, including allowing association health plans to provide additional coverage options for employers and self-employed Vermonters. Lawmakers are evaluating whether expanded plan flexibility could help stabilize markets and address affordability pressures.
• Private Equity: The House Health Care Committee reviewed an updated version of H.583, which would establish a new statutory framework governing acquisitions and changes of control involving health care entities, including transactions with private equity firms. The revised bill adds additional layers of oversight, raising concerns about limiting potential solutions to Vermont’s health care challenges and increasing uncertainty for privately owned providers.
• Land Use: The Senate Natural Resources and Energy Committee continued review of S.325, a bill proposing targeted updates to land use and permitting policy. The proposal would extend certain Act 250 exemption sunsets to 2030 in order to support housing development and maintain momentum on broader permitting reform timelines. The committee will continue collaborative discussions in the weeks ahead on this significant housing and development initiative.
• Current Use: The House Environment Committee began discussion of H.70, which would include land enrolled in the Use Value Appraisal Program within the statutory definition of conserved land for purposes of the state’s conserved land inventory. The proposal could help Vermont advance its conservation goals while recognizing the importance of balanced, smart growth.
• Rodenticides: The Vermont Chamber testified before the House Agriculture, Food Resiliency, and Forestry Committee on H.758, which would broadly ban the use of anticoagulant rodenticides commonly used by food manufacturers, restaurants, and other food-related facilities to prevent rodent infestations. The bill is expected to be amended to replace the proposed ban with a study on rodenticide alternatives.
• Swipe Fees: The Senate Finance Committee reviewed S.135, which would prohibit credit card fees on the tax and gratuity portions of transactions and require retailers to accept cash for purchases under $500. The proposal has drawn renewed attention following a recent ruling in Illinois, though the committee signaled it will wait for further legal clarity before advancing the bill.
• Bottle Bill: The House Environment Committee advanced H.915, proposing changes to Vermont’s beverage container redemption program. A similar version was vetoed in a prior session, and concerns remain regarding potential cost increases for the beverage industry. Significant revisions are expected as the bill moves forward.
• Education: The House and Senate Education Committees continued discussions on education reform and district mapping, weighing mandatory consolidation against more limited voluntary models. As crossover approaches, advancing durable reform will require difficult, and potentially unpopular, decisions to ensure long-term quality, operational efficiency, and cost sustainability within Vermont’s education system.

• Commerce Budget Letter: The House Commerce and Economic Development committee reviewed annual budget requests from statewide agencies and economic development organizations in preparation for sending their annual budget request letter to the House Appropriations committee. Continued focus on investing in economic development tools and programs that will move Vermont toward greater economic growth and competition remains vital for correcting structural issues facing the Vermont economy.
• Vermont Adjutant General: Deputy Adjutant General Henry Harder was elected as the new Adjutant General of the Vermont National Guard by a Caucus of the Whole. He succeeds retiring 2025 Citizen of the Year Adjutant General Knight, who served eight years in the role and built meaningful relationships and trust between the Vermont National Guard, the legislators, and the broader public. The Vermont Chamber extends its gratitude to General Knight for his dedicated leadership and for 43 years of distinguished service to our nation.
• Health Care Costs: The Senate Health and Welfare Committee heard testimony from the Green Mountain Care Board, which is advocating that hospital savings be targeted to specifically reduce costs for those in the state’s qualified health plans. The consequences could be significant for employers in the self-insured and large group market, the latter of which already saw an average 15% increase this year.
• Budget Adjustment: The House took up H.790, , the budget adjustment bill that makes midyear changes to the FY ’26 state budget. The House and Senate Appropriations committees will now meet for a committee of conference to find compromise between the House and Senate versions of the bill.
• Housing Construction: The House General and Housing committee continued discussions on H.775, refining provisions that would direct the Treasurer’s office to support financing for off-site modular homes and authorize the Vermont Housing Finance Agency authority to assist in funding long-term care facilities construction. These initiatives could promote more efficient housing development and strengthen access to residential healthcare services.
• Housing Development: The Senate Economic Development, Housing, and General Affairs committee continued work on S.328, reviewing funding incentives for high-density housing built with union labor and a provision prohibiting common interest communities from banning long-term rentals. While expanding rental markets is a meaningful step toward increasing housing supply, a union incentive could exclude smaller businesses and rural areas with lower union representation.
• Career and Technical Education (CTE): The Senate Education committee continued review of S.313, discussing governance models, expanded access, aligned graduation credits, and integration of adult education programs. A collaborative approach between legislators, CTEs and the Administration will be essential to modernizing CTE and strengthening its role in Vermont’s education and workforce development.
• Commercial Property Assessed Clean Energy: The Vermont Chamber gave testimony to the Senate Finance committee on S.138, a bill proposing to expand the PACE program to include commercial and industrial buildings. The PACE program expansion would allow business owners to finance energy improvements and repay the cost over time through a special assessment on their property tax bill.
• Redistricting: The House and Senate Education committees continued discussion on potential redistricting of Vermont’s education system. With regional models, voluntary merging, and draft map proposals all still under debate after seven weeks of work, substantive proposals and decisions must soon be made to continue on the path toward education reform and cost-saving measures.
• Efficiency Standards: The House Energy and Digital Infrastructure committee continued work on H.718, making significant progress toward a balanced, incremental approach to establishing reliable and predictable residential building code standards. The bill now includes safe harbor language to protect builders and preempt liability arising from the Governor’s Executive Order allowing use of 2020 Residential Building Energy Standards.
• Cannabis Event Permits: The Senate Economic Development, Housing, and General Affairs and the House Government Operations and Military Affairs committees heard testimony in a joint hearing on S.278, which proposes significant changes to cannabis laws, including a pilot program for cannabis events licenses modeled after alcohol events permits. As work continues, potential insurance and liability burdens for venues where cannabis consumption may be allowed must be considered.
• Miscellaneous Tax Bill: The House Ways and Means Committee continued work on a committee bill making targeted administrative and policy updates to Vermont’s tax laws. The draft includes several provisions employers should be aware of: repeal of the denial of credits for taxes paid in another state by S corporations, which restores more equitable treatment for pass-through businesses; an increase in the Down Payment Assistance Program credit cap to reflect rising housing costs and support workforce housing access; and an increase in the estate tax filing threshold, which may reduce tax exposure for family-owned businesses and succession planning. Additional technical updates address property transfer tax, current use administration, and grand list timelines. This bill is expected to serve as the primary vehicle for potential federal tax conformity updates this session. Those conformity provisions are not yet included, and it remains unclear where they will ultimately land. The Vermont Chamber continues to advocate for thoughtful conformity to support business investment, modernization, and long-term competitiveness.
• Net Metering: The House Energy and Digital Infrastructure continued work on H.716, a bill revising net metering credits. After stakeholder input and language review, the committee removed a harmful clause that would have capped the negative adjustor for net-metered energy, avoiding potential cost shifts onto non-net-metered ratepayers.
• Economic Development: The Senate Economic Development, Housing, and General Affairs continued work on S.327, eliminating the Business Development Task Force and assigning further responsibilities to the Agency of Commerce and Economic Development. While efficiency and continued focus on developing economic competitiveness remain priorities, continued stakeholder engagement will be vital for ensuring a thorough review of challenges and opportunities facing Vermont businesses.
• Tax Classifications: The House Ways and Means Committee continued work on expanding property tax classifications from two to three categories. Discussion included categorizing short- term rentals in apartment buildings, misclassification penalties, and potential impacts of seasonal workforce housing being included in the same tax classification as second homes and short-term rentals, creating a potential barrier for visiting workers.
• Liquor Liability: The Vermont Chamber testified before the House Government Operations and Military Affairs Committee in support of repealing the mandatory liquor liability insurance requirement. Removing this mandate would eliminate a significant cost burden for businesses while preserving existing accountability standards.
• Streamlined Housing Development: The Senate Natural Resources and Energy and Senate Economic Development, Housing, and General Affairs committees reviewed persistent bottlenecks to housing development, focusing on infrastructure, zoning, and permitting delays. Legislators continue consideration of advancing legislation around pre-approved housing designs, an initiative that could cut build times, reduce permitting delays, and slash housing costs if implemented.
• Convention Center Feasibility: The Vermont Chamber is serving on a statewide task force evaluating the feasibility of a convention center and performance venue in Vermont, and in this week’s meeting examined potential governance and funding models used for building and maintenance. While public-private partnerships and other funding mechanisms were discussed, evidence pointed to additional burdens of state or local funding being necessary for any project to pencil out. Email us to learn more.
• US Supreme Court Tariff Ruling: The U.S. Supreme Court struck down sweeping tariffs set by President Trump under the International Emergency Economic Powers Act, ruling they exceeded constitutional authority. While the decision did not directly address refunds for businesses that paid the tariffs, further guidance or mechanisms for potential reimbursement may emerge.
• Senate Pro-Tempore Retirement: Senate Pro Tempore Phil Baruth announced on the Senate floor that he will retire at the end of the session and will not endorse a successor. With significant time remaining in the session, the announcement is likely to spark early leadership positioning and introduce new dynamics into the legislative process.

Retail Delivery Fee: The House Transportation committee introduced H.863, a bill that would impose a fee of $0.30 on all retail deliveries. The proposal would raise burdensome and costly new administrative and compliance requirements on Vermont businesses that operate direct-to- consumer services.

Local Option Gas Tax: The Senate Transportation Committee reviewed language allowing municipalities to impose an additional 1 percent local option tax on sales, meals and rooms, or alcohol, with much of the revenue retained by the state for the Transportation Fund. While a long term transportation funding solution is needed, this approach could raise costs for businesses in the visitor economy without resolving the underlying structural challenges.

Tax Credit Opt Out: The House Ways and Means committee discussed opting out of a $1,700 federal tax credit for contributions to scholarship organizations that help pay education expenses for elementary and secondary students. Choosing to forgo this no-cost federal incentive could shut the door on an additional funding mechanism for Vermont’s education system

Income Tax Brackets: The House Ways and Means committee introduced H.732, a bill that would add new income tax brackets at the $200,000 and $400,000 income levels to generate additional revenue for the education fund. Reliance on additional and volatile income taxes to address structural spending problems will not address the underlying affordability crisis facing Vermont, the third most taxed state in the nation.

Tax Classifications: The House Ways and Means Committee continued work on expanding property tax classifications from two to three categories, including discussion of defining employer-provided housing as a nonmonetary employment benefit and limiting property attestation forms to properties with fewer than five dwellings. The committee chair signaled that additional testimony will be taken next week as lawmakers continue to evaluate the structure and potential impacts of the proposal.

Budget Adjustment: The Senate advanced H.790, the budget adjustment bill that makes midyear changes to the FY ’26 state budget. The committee largely concurred with the House proposal to carry surplus funds into the FY ’27 budget for potential use in a property tax buydown once the broader budget outlook takes shape. The bill now moves to the House Floor for further consideration.

Cannabis Event Permitting: The Senate Economic Development, Housing, and General Affairs committee reviewed S.278, a bill that would authorize general event permits for cannabis sales, with limited hours, access-controlled spaces, licensed entity applications, and municipal approval requirements similar to alcohol event permits. With significant implications for venues statewide, careful consideration will be needed before advancing this broad expansion of cannabis use.

Public Safety: The House and Senate Judiciary Committees held a joint hearing on the Chittenden County Accessibility Court pilot, launched in response to record case backlogs. The pilot has resolved over 700 pending cases and will continue at a scaled-back level, with testimony also noting that long-term success in reducing court volume will depend in part on addressing underlying housing instability.

Economic Development: The Senate Economic Development, Housing, and General Affairs committee continued review of S.327, emphasizing the need to improve communication of business resources and clarify Vermont’s branding initiatives. As discussion continues around requiring an administrative report before establishing a Business Development Task Force, it remains important to consider the strong impact a task force working in tandem with this report could have on creating accessible and competitive economic environments.

Alcohol: The House Government Operations and Military Affairs committee continued testimony on an omnibus alcohol bill, hearing overwhelming support from the alcohol industry on improvements the bill would make to distribution allowances, services in farmers markets, consumption levels permitted in tasting rooms and retail shops, and permitting and hours of service for off-site tasting events.

Health Care Recruitment: The Senate Health and Welfare committee reviewed S.142, a bill creating a pathway to licensure for internationally trained medical professionals. With strong stakeholder support, the proposal would help address workforce shortages and strengthen Vermont’s ability to attract and retain skilled healthcare providers.

Health Care: The Senate Health and Welfare committee continued work on S.190, a bill that would put outsourced hospital services under the Green Mountain Care Board’s budget-setting authority and require hospitals to compare their posted pricing to Medicare in preparation of reference-based pricing. These changes aim to continue momentum of cost containment efforts.

Vermont Housing Improvement Program (VHIP): The House General and Housing committee reviewed the VHIP program, which helps property owners bring vacant or code-deficient housing back online in an affordable manner. Without a base funding allocation as requested by the Administration, the future of one of the state’s most effective housing development programs remains uncertain

Agency of Commerce and Community Development (ACCD) Budget: The House Commerce and Economic Development and House Appropriations committees heard testimony on ACCD’s budget proposal, including much-needed funding for the Manufactured Home Improvement Program, International Business Development Office, and a request for base funding to VHIP. No additional funding was requested by the Department of Tourism and Marketing or for economic development programs though investments in both of these areas have returns that help grow the economy.

Net Metering: The House Energy and Digital Infrastructure committee reviewed H.717, a bill that would cap or eliminate the negative adjustor for net-metered energy. If enacted, the proposal could shift additional costs onto non-net-metered ratepayers and disrupt the Public Utility Commission’s established process for regularly updating adjustors based on competitive market prices.

Plastics Prohibitions: The Senate Natural Resources and Energy committee continued testimony on S.247, a bill that would prohibit advanced recycling and chemical conversion technologies and restrict certain materials used in medical equipment. These provisions could add cost pressures to an already strained healthcare system and place the state out of alignment with others pursuing innovative waste management solutions.

Noncompete: The House Commerce and Economic Development continued work on H.205, bill that would ban non-competes and restricts an employer’s use of retention incentive agreements. The bill continues to take shape into a more workable proposal, with legislators including flexibility, reflecting testimony from impacted employers, and continuing work to remove any unintended consequences.

• Redistricting Map: After a year of contentious debate over the future of Vermont’s education system, the House Education Committee chair released a proposed redistricting map to move the conversation from theory to a more tangible framework for discussion. Framed explicitly as a starting point, the map sets the stage for stakeholder feedback and upcoming testimony, with key questions around governance, cost pressures, local control, and implementation.
• Omnibus Housing Bill: The Senate Economic Development, Housing, and General Affairs committee continued review of S.328, working to ensure that town housing goals continue to integrate with statewide development targets and continuing to develop an off-site housing construction pilot program that could make it easier to create new housing statewide
• Rural Housing: The House General and Housing Committee continued work on H.775, a multifaceted housing production bill focused on incentivizing small-scale rural development by unlocking new financing tools and reducing barriers for small developers. Committee discussion explored the proposal of an off-site housing construction accelerator pilot program that could lead to more efficient, timely, and consistent home creation.
• Land Use Permitting: The House Environment committee introduced H.805, a bill that would allow Agency of Natural Resources-certified engineers to help streamline wetland and stormwater permitting for projects with minor impacts. Modeled after existing wastewater exemptions, the proposal could improve permitting efficiency.
• Omnibus Alcohol Bill: The House Government Operations and Military Affairs committee combined four alcohol-related bills into a single omnibus alcohol bill that would improve operations for alcohol suppliers by increasing distribution allowances, allowing services in farmers markets, increasing consumption permitted in tasting rooms and retail shops, and improving permitting and hours of service for off-site tasting events.
• Vermont Employment Growth Initiative (VEGI): The Senate Finance and Senate Economic Development, Housing, and General Affairs committees continued review of S.225 and S.327, which would remove the sunset of the VEGI program and preserve access to this key economic development tool.
• Outdoor Recreation Day: On Outdoor Recreation Day, committees heard testimony on the outdoor recreation industry’s $2.1 billion contribution to Vermont’s GDP and its support of over 16,000 jobs.
• Health Care: The House Health Care committee continued testimony on H.585, a bill proposing broad reforms to health insurance structures, including the permitting of association health care plans to provide additional choices for employers and self-employed Vermonters. Continued introduction of tools like these remains critical to stabilizing Vermont’s volatile insurance markets and improving affordability for ratepayers.
• Prescription Drugs: The House Health Care committee received updates on legislation passed last session to cap prices on certain prescription drugs to make health care more affordable. The committee also discussed strategies to pool purchasing power and reduce drug costs to help curb systemically high healthcare expenses.  
• Budget Adjustment: The Senate Appropriations committee reviewed H.790, the House-passed budget adjustment bill, which makes midyear changes to the FY ’26 state budget. The committee concurred with the House proposal to carry surplus funds into the FY ’27 budget for potential use in a property tax buydown once the broader budget outlook takes shape.
• Education Spending: The Senate Finance committee continued work on S.220, a bill that would align education spending growth with inflation while implementation of education reform takes shape. While recent compromises in the bill allow for more flexibility in extreme circumstances, it remains unclear if the bill will move beyond this committee as debate continues.
• Rodenticides: The House Agriculture, Food Resiliency, and Forestry committee reviewed H.758, a bill that would completely ban the use of rodenticides outside lengthy and narrow waiver procedures for applicators in cases of agricultural, environmental, or public health emergencies. Such a ban could significantly affect facilities management, food safety, and operational costs for businesses across sectors, particularly those in food service, hospitality, and manufacturing.
• Tax Classifications: The House Ways and Means committee continued work on the expansion of property tax classifications from two to three, determining property taxation will be based on percentage of property use within in each category. Significant challenges remain, including the verification of property use attestations, administration and collection of forms, and the cost of implementation.
• Leave Policy (H.459): House General and Housing Committee discussed a policy proposal to stop workers’ compensation leave from running concurrently with Parental and Family Leave. Committee members raised concerns about employer costs, particularly for smaller or benefit-rich employers, and questioned whether the bill was overly burdensome. The committee agreed to have the bill drafted with an employer size threshold for further discussion.
• Flexible Working Arrangements: The Vermont Chamber of Commerce testified before the Senate Economic Development, Housing, and General Affairs committee on S.230, a bill that would shift the onus to employers to prove that flexible working arrangements are unworkable. Vermont has one of the most extensive flexible working arrangement laws in the country and this is a solution in search of a problem.
• Non-Compete: The House Commerce and Economic Development committee continued work on H.205, a bill that would broadly ban non-competes and restricts an employer’s use of retention incentive agreements. The bill continues to be shaped into a more workable proposal.
• Franchises: The House Commerce and Economic Development committee continued work on H.733, a bill that would significantly expand state regulation of business-to-business franchise relationships by limiting termination and renewal rights and imposing mandatory inventory repurchase and transfer requirements. The proposal raises serious concerns about government intrusion into private contracts, added compliance costs, and potential impacts on franchise investment and expansion in Vermont.
• Mediators: The House General and Housing committees advanced H.548, a bill that would create a new state position offering mediation services to both public and private sector businesses and their employees’ collective bargaining units. The bill now moves to the House Floor for consideration
• Career Technical Education (CTE): The Senate Education committee heard testimony on risks of applying broad reform to a diverse system of CTE centers while also considering the complexities of creating real solutions to the problems facing CTE centers. Ensuring CTE centers are properly funded, accessible to students, and integrated with broader education reform remains vital for developing Vermont’s future workforce.
• Event Ticketing: The House Commerce and Economic Development committee continued testimony on H.512, a bill aimed at curbing resale of event tickets to improve event attendance and strengthen protections for venues using online ticketing platforms. Questions remain around potential impacts on face-value reselling platforms and possible exceptions for venue-reseller partnerships
• Purchase and Use: The House Ways and Means Committee reviewed the Governor’s proposal to shift the remaining one-third of vehicle purchase and use tax revenue from the Education Fund to the Transportation Fund over the next three years. This transition is important to meet federal match and road maintenance requirements.
• Meals and Rooms: The Senate Finance Committee reviewed S.286, a bill proposing a 2 percent increase to the rooms and meals tax and further raising costs for businesses in the visitor economy. During review, the committee chair emphasized that significant testimony from impacted industries will be needed.

• Omnibus Housing Bill Advances: The Senate Economic Development Committee advanced a comprehensive housing bill that takes important steps to increase housing supply by strengthening municipal housing planning requirements and modernizing zoning to allow more duplexes and small multi-unit homes where infrastructure exists. As the bill moves forward, the Chamber will focus on ensuring that new labor incentives, rent regulations, and added requirements do not unintentionally drive-up construction costs or slow the pace of housing production needed for Vermont’s workforce.
• Rural Housing: The House General and Housing Committee reviewed H.775, a multifaceted housing production bill focused on incentivizing small-scale rural development by unlocking new financing tools and reducing barriers for small developers. Committee discussion explored governance and financing mechanics, accessibility considerations, and how these tools could support housing production across rural communities.
• Recycling and Material Innovation Ban (S.247): The Senate Natural Resources and Energy Committee reviewed provisions of S.247 that would prohibit advanced recycling and chemical conversion technologies, effectively closing the door on emerging recycling innovation and related investment in Vermont. This type of blanket ban sends an anti-business signal that puts Vermont out of step with states pursuing circular economy solutions and modern waste management strategies.
• Health Care Supply Impacts (S.247): Separate sections of S.247 also include restrictions on materials used in medical tubing and solution containers that could increase costs and limit supply options for health care providers. These changes risk adding pressure to an already strained health care system, with downstream cost impacts for employers and patients.
• Land Use and Housing: The Senate Natural Resources and Energy Committee held multiple hearings this week to understand the state of the housing discussion and its intersection with land use, including updates on mapping, Act 181, and the community housing investment program.
• Budget Adjustment: The House advanced H.790, a bill making adjustments to the FY ’26 budget. While the Governor proposed using surplus funds to immediately buy down projected property tax increases, the House version would carry the funds into the FY ’27 budget for potential use in a buydown or for other priorities. The bill now moves to the Senate for consideration.
• Yield Bill: The House Ways and Means Committee reviewed projected FY ’27 property tax rates but will wait to set rates until school budgets are finalized. With a funding gap exceeding $100 million, a combination of buydowns and rate increases is expected, directly impacting employers and affecting economic predictability as runaway costs continue.
• Alcohol: House Government Operations committee took testimony on H.672, H.655, H.647, and a committee bill, a flight of alcohol-related legislation that would expand permissions for sale, total distribution, and number of establishments allowed in the alcoholic beverages industry. These changes could streamline the sale and distribution of alcohol for licensees.
• District Consolidation: The House Education committee continued reviewing school district consolidation as a strategy to reduce education costs. Despite earlier legislative goals to adopt a new district map by the end of the month, delays indicate a continued lag in policy committees to adopt key cost-saving measures.
• Mileage-Based User Fee: The Senate Transportation committee continued testimony on implementation of a mileage-based user fee for electric vehicles, putting forward a system that would charge EV owners based on odometer readings. While this change would help recoup some revenue for the flagging Transportation Fund, additional action will be needed to ensure Vermont’s roads remain adequately funded and maintained.
• Dental Workforce Development: The House Government Operations and Military Affairs committee heard testimony on H.588,  a bill that would create a temporary license for visiting dental students. This licensure update could help expand Vermont’s dental workforce by making it easier for students to practice, certify, and remain in the state.
• Tax Classifications: The House Ways and Means committee continued work on the expansion of property tax classifications from two to three. Many challenges still need to be addressed, including the verification of property use attestation forms, administration and collection of forms, and the cost of implementation. Dwelling and employee housing definitions also remain in flux.
• Career Technical Education (CTE): The Senate Economic Development, Housing, and General Affairs committee reviewed S.313, a bill outlining goals to align CTE with workforce needs, expand access, reduce barriers, and better integrate CTE courses with graduation requirements. While the bill marks a strong start to CTE reform discussions, continued focus is needed to ensure students have the opportunity build skills necessary to meet the needs of Vermont employers.
• Event Ticketing: The House Commerce and Economic Development Committee reviewed an updated version of H.512, a bill aimed at curbing the resale of event tickets. If advanced, the bill could improve event attendance and strengthen protections for venues using online ticketing platforms.
• Energy Codes: The House Energy and Digital Infrastructure Committee continued testimony on H.718, a bill that would push enforcement of existing residential and commercial building energy codes, require new disclosures and training for contractors, and allow municipalities to enforce energy codes alongside the state. If advanced, this bill could add regulatory layers and administrative complexity, a move that directly conflicts with the urgent housing crisis.
• Flexible Working Arrangements: The House General and Housing Committee introduced H.726, a bill that would require employers to grant employee requests for flexible working arrangements, shifting the onus to businesses to prove these arrangements would not work.
• Non-Compete: The House Commerce and Economic Development Committee took up testimony on H.205, a bill that would broadly ban non-competes and restricts an employer’s use of retention incentive agreements. While some improvements have been made as a result of the Non-Compete Agreements Study Committee report released this past fall, additional changes are needed to make the bill balanced and workable.
• Franchise Agreements: The House Commerce and Economic Development Committee reviewed H.733, a bill that would significantly expand state regulation of business-to-business franchise relationships by limiting termination and renewal rights and imposing mandatory inventory repurchase and transfer requirements. The proposal raises serious concerns about government intrusion into private contracts, added compliance costs, and potential impacts on franchise investment and expansion in Vermont.

• Workforce Strategy: The House Commerce and Economic Development committee heard testimony from the Office of Workforce Strategy and Development on efforts to support business expansion, increase retention of college graduates, and grow Vermont’s workforce throughout sectors struggling to recruit. Building upon this work remains critical to addressing improving affordability and ensuring that employers have the workforce needed to remain competitive. 

• Housing Development: The Vermont Chamber testified before the Senate Economic Development, Housing, and General Affairs committee, advocating practical housing policies that reduce regulatory burdens and streamline development. Ensuring the legislature continues its focus on tackling Vermont’s housing shortage remains critical to supporting workforce recruitment, business growth, and long-term economic competitiveness  

• Drifting Priorities: The House Commerce and Economic Development Committee introduced nine new bills this week, many centered on data privacy regulations. As businesses face mounting challenges, it is critical that the committees prioritize proposals that aim to grow economic development and workforce opportunities to support Vermont’s long-term affordability and competitiveness.  

• Bottle Bill: The House Environment Committee reviewed a bill that would rewrite the state’s beverage container redemption law, setting aspirational targets for redemption rates. The bill also includes potential increased fees for manufacturers to support the expanded system. 

• Workforce Training: The Senate Education Committee heard testimony from the Vermont Student Assistance Corporation on workforce training programs available to support employee development. These programs offer businesses valuable tools to upskill existing workers or hire job-ready talent. 

• Flexible Working Arrangements: The Senate Economic Development, Housing, and General Affairs committee reviewed S.230, a bill that would require employers to grant employee requests for flexible working arrangements, shifting the onus to businesses to prove these arrangements would not work.  

• Career Technical Education (CTE): The House Commerce and Economic Development, House Education, and Senate Economic Development, Housing, and General Affairs committees heard testimony on the Administration’s proposal to consolidate CTE leadership under the Agency of Education. The practicality and effectiveness of shifting oversight of this vital system to an agency already burdened by broader education reform efforts will need significant analysis if this proposal moves forward. 

• Miscellaneous Tax Policy: The House Ways and Means Committee reviewed a miscellaneous tax bill that would make technical changes to the Vermont tax code, including repealing the denial of other state tax credits(OSCR) for S Corporations, aligning them with other passthrough entities. This small shift could simplify tax procedures and make Vermont more hospitable to S Corporations. 

• Education: The Senate Finance Committee reviewed education reform and funding discussions, hearing a report from the school redistricting task force, which fell short of making required recommendations on district consolidation. With a projected average 12 percent property tax increase looming, debates continue over potential one-time buy-downs. Difficult decisions must be made to rein in education spending and to improve system efficiency. 

• Energy Code: The House Energy and Digital Infrastructure Committee reviewed H.718, a bill that would push enforcement of existing residential and commercial building energy codes, require new disclosures and training for contractors, and allow municipalities to enforce energy codes alongside the state. If advanced, this bill could add regulatory layers and administrative complexity, a move that directly conflicts with the urgent housing crisis.   

• Purchase and Use Tax: Following the Governor’s call for a gradual restoration of purchase and use tax revenue to the Transportation Fund, the House Ways and Means Committee briefly introduced H.643, a bill to fully restore that revenue immediately. This move would allow Vermont to continue to meet federal match requirements and maintain $163 million in funding. Urgent action remains essential to ensure the stability and long-term maintenance of the state’s road infrastructure. 

• Commercial Property Assessed Clean Energy Projects (C-PACE): The Senate Natural Resources Committee continued testimony on S.138, a bill proposing to expand the PACE program to include commercial and industrial buildings. The expansion would allow business owners to finance energy improvements and repay the cost over time through a special assessment on its property tax bill. 

• Wastewater: The Senate Natural Resources committee reviewed S.212, a bill aimed at streamlining the wastewater connections permitting process and enhancing coordination between municipal and state-level permitting systems. This measure would help reduce timelines and increase the efficiency of new development projects.  

• Corporate Tax: The House Ways and Means committee continued testimony on impacts of selective decoupling from federal tax code changes, which would raise the cost of innovation, increase tax code complexity, and penalize firms investing in productivity and higher-wage jobs. In a state with a shrinking workforce, productivity-led growth is essential, especially as Vermont already ranks near the bottom nationally in business formation, investment momentum, and economic growth.