April 25, 2025 - Vermont Chamber of Commerce

Budget Advances Key Chamber Priorities, but Concerns Remain Over Housing Program Cuts and Unmet Workforce Needs

The Senate Appropriations Committee (7-0-0) and Senate Finance Committee (5-2-0) advanced H.493, the $9 billion FY26 budget bill. Highlights include increased support for the Manufactured Home Improvement and Repair Program, sustained investments in higher education and workforce retention, and continued funding for public safety. One-time allocations for infrastructure, small business assistance, and brownfield revitalization reflect progress on key priorities. However, funding cuts to critical housing programs and unmet workforce relocation needs remain significant concerns. The Governor has expressed concerns with the current state of the bill but has not threatened a veto. The Vermont Chamber will continue to advocate for balanced investments that support long-term economic resilience as the bill moves to the Senate Floor.

Sustained Investments Supporting Vermont’s Economy

The Manufactured Home Improvement and Repair (MHIR) Program increased in base funding from $2 million to $2.15 million.
Investment in the Vermont Professionals of Color Network remained consistent, bolstering the organization’s workforce retention and recruitment efforts statewide.
3% base increases for UVM, VSAC, and Vermont State Colleges remained consistent, supporting the state’s talent pipeline and higher education system.
$650,000 in base funding to Sheriffs to restore vacancy savings remained consistent, allowing transport deputy positions to be filled. $650,000 in base funding to the State’s Attorneys to restore vacancy savings also remained consistent. Both are important allocations in addressing public safety concerns.
The International Business Development Office received $150,000 base funding, mirroring FY25’s one-time investment and enhancing Vermont’s global trade capacity.

One-Time Investments Supporting Vital Goals

The Vermont Bank Infrastructure Sustainability Fund increased from $7.5 million to $9.1 million, providing a new funding source for community infrastructure needs and matching the amount requested in the Governor’s budget proposal.
Serve, Earn, Learn received $500,000 in one-time funding, building on the $500,000 in base support already in place.
The Small Business Technical Exchange received $780,000 in one-time funds to support technical assistance and small business readiness.
The Irish Trade Commission received a targeted $20,000 investment in preparation for its establishment.
The Brownfield Revitalization Fund received $1,000,000, which is half the Governor’s request, but more than the House’s initial zero-dollar allocation.

Unmet Needs and Shifting Priorities

The Vermont Housing Incentive Program (VHIP) remained in one-time funds, garnering an additional $150,000 from the Senate Appropriations Committee and bringing total funding to $4.3 million. However, the program’s future remains uncertain without integration into the base budget as recommended by the Governor.
The Senate Appropriations Committee pooled funding for the Rental Revolving Loan Fund and the Middle-Income Homeownership Development Program, reducing the total allocations between the two programs to $14.5 million. This represents a $3 million reduction in total spending for these vital housing development programs in comparison to the House-passed budget, and less than half of the amount recommended in the Governor’s budget proposal.
Advance Vermont, a workforce initiative focused on upskilling and education-to-career pathways, saw a reduction of only $50,000, lowering total support to $150,000, but keeping the important workforce tool viable.
No funding was provided for relocation assistance through the Grants for Relocation Outreach Work Program (GROW grants), a program intended to support local, regional, county, and statewide organizations conducting new resident relocation, recruitment, and retention activities.

The Vermont Chamber will continue to advocate for strategic investments that will create economic growth opportunities. The bill passed out of committees, and while the Governor has acknowledged the need for compromise, he also indicated frustration over allocation reductions in key housing programs. Additional funding towards the hotel and motel program, and slow movement towards proposed tax credit packages have also emerged as points of contention. While not directly threatening a veto, the Governor has expressed dissatisfaction at the bill in its current state, which will now head to the Senate Floor. It remains critical to ensure policy choices are aligned with long-term economic resilience and talent development.

April 25, 2025

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Escalating Healthcare Alarm: Joint Hearing Underscores Urgency, Senate Takes Up Short-Term Stabilization Bill

A joint hearing of the Senate Health and Welfare and House Health Care Committees made it clear that Vermont’s healthcare system is beyond warning signs—it is in active crisis. Testimony from the Green Mountain Care Board (GMCB), Agency of Human Services (AHS), and hospital leaders revealed a system in financial freefall, with both insurers and providers facing mounting pressure from solvency threats, skyrocketing costs, and growing gaps in care access.

Leaders from across the healthcare landscape shared stark realities: more than half of Vermont’s hospitals are operating at a loss, and Blue Cross Blue Shield of Vermont, the state’s only remaining domestic insurer, is under analysis by the Department of Financial Regulation (DFR). One number captured the urgency: $200 million. That is the amount BCBSVT says it needs by July to avoid double-digit premium increases and to cap 2025 rate hikes at 5%. Without it, businesses and their employees could face yet another year of devastating cost escalation.

In a critical moment of testimony, GMCB member Jessica Holmes articulated the unsustainable load employers have carried: Vermont’s declining commercial population is shouldering a disproportionate burden because the system “has essentially been financed by the high prices paid by the commercially insured population and their employers. They cannot afford to do so any longer.” Her comments underscored the central tension in the crisis—businesses are being priced out of a system that relies on their continued contributions to stay afloat.

Senate Reviews an Emergency Powers Bill, Passed by the House

The Senate Health and Welfare Committee is reviewing H.482, a House-passed bill that gives the Green Mountain Care Board temporary emergency powers to stabilize Vermont’s healthcare system.

One provision would allow the Board, with input from the Department of Financial Regulation, to reduce insurer payments to hospitals if a domestic insurer faces an “acute and immediate” solvency threat. Reductions would apply only to hospitals with over 135 days cash on hand and a recent operating surplus. Testimony questioned the fairness and accuracy of this metric, with some calling for a higher threshold and exemptions for Critical Access Hospitals.

A second provision would let the Board appoint an independent observer if a hospital misrepresents financial data or breaks its budget. Hospital leaders warned this could hurt bondholder confidence. Lawmakers are considering clearer definitions and safeguards to avoid unintended financial harm.

Who’s in Charge?

Even as the crisis intensifies, fundamental questions persist: Who is responsible for making the decisions that will prevent system collapse this summer? Oversight is fragmented among the Legislature, the Governor’s administration including the Agency of Human Services and DFR, and the GMCB, leaving no single entity clearly empowered to intervene in ensuring the balance between insurance solvency and support for hospital systems that are critical to communities, at the speed the moment requires.

The lack of a designated crisis authority has fueled concern among lawmakers and advocates alike. Vermonters and Vermont employers deserve clarity on who holds the reins. Without decisive leadership and accountability, the system’s stability and the financial wellbeing of the state’s business community remain at risk.

Impact on Vermont Employers

Without intervention, Vermont employers could face premium increases of 20% or more for a fourth consecutive year. That would force businesses to reduce benefits, shift more costs onto employees, or forgo coverage altogether. At the same time, staffing shortages, care delays, and hospital instability could hinder employee health and hiring efforts statewide. The Vermont Chamber remains deeply concerned about the economic ripple effects. The business community cannot continue to subsidize a collapsing system without support or reform.

April 25, 2025