Jeremy Little, Author at Vermont Chamber of Commerce

Conference Committees Take Center Stage as Major End-of-Session Negotiations Intensify

May 15, 2026

Conference Committees Take Center Stage as Major End-of-Session Negotiations Intensify

As the Legislature moves deeper into the final stretch of the session, attention is increasingly turning to conference committees, where House and Senate negotiators will attempt to resolve differences on several major bills before adjournment. While some of the remaining disputes center on policy mechanics and implementation, they also reflect broader philosophical divides around taxation, education spending, municipal revenue sharing, housing policy, and the future structure of state government programs.

H.933: Miscellaneous Tax Bill

H.933 serves as the Legislature’s annual miscellaneous tax bill and includes a wide range of technical and policy tax provisions. Most of the bill remains aligned between the House and Senate. Although several areas continue to reflect broader differences around tax policy, municipal finance, and Vermont’s participation in federal incentive programs. A conference committee met briefly Thursday and should continue negotiations early next week.

Where Things Stand
- Federal Tax Credit for Scholarship Granting Organizations (SGOs)
  - The Senate version allows Vermont’s participation in the federal tax credit program for contributions to scholarship granting organizations, while adding additional eligibility requirements, reporting standards, and safeguards tied to federal compliance.
  - The House version also allows participation, but requires future legislative action to identify qualifying organizations.
- PILOT Special Fund and Local Option Tax Revenue Sharing
  - The Senate added language allowing collecting municipalities to receive a 5% greater share of Local Option Tax revenue in fiscal years following an $18 million surplus in the PILOT Special Fund. The House did not include this provision.
- Additional Senate Tax Provisions
  - The Senate version also includes technical adjustments related to Vermont’s treatment of federal Section 174A research and development expensing changes and qualified small business stock treatment.
  - The bill includes differing timelines related to Vermont’s decoupling from the federal qualified small business stock exclusion.
- Why It Matters
  - While these provisions represent relatively small portions of the overall bill, they highlight larger debates around state oversight, municipal revenue allocation, business taxation, and how Vermont structures participation in federal incentive programs.
- What to Watch
  - The remaining disagreements appear manageable from a policy standpoint, but several issues touch broader political and philosophical divisions that could complicate final negotiations as the session enters its closing stretch.

H.949: Yield Bill

The annual yield bill sets the statewide average property tax rate and is one of the most consequential pieces of legislation each year because it directly impacts education property taxes for businesses and homeowners across Vermont.

Where Things Stand
- Average Property Tax Increase
  - The House passed a proposal resulting in an average increase of roughly 7%, paired with a one-time buy down and reserves intended to offset future pressure.
  - The Senate advanced a larger buy down that would reduce the average increase to approximately 3.8%.
- Future Spending Controls
  - The House proposal maintains the excess spending threshold at 118% of the statewide average district per pupil education spending, adjusted for inflation.
  - The Senate version sets the threshold at 112%.
Why It Matters
- With the immediate focus largely on lowering next year’s property tax increase, the larger debate centers on how aggressively the state should constrain future education spending growth and whether stronger statewide spending controls are necessary to improve long-term affordability.
- The debate also closely ties into broader education transformation discussions happening simultaneously in H.955.
What to Watch
- The House’s position on the size of the buy down may soften during negotiations, but the future spending threshold could prove more difficult to resolve because it reflects fundamentally different approaches to long-term education cost containment.

H.951: State Budget

H.951 is the state’s annual budget bill and determines how Vermont allocates funding across state government programs and services for the coming fiscal year.

Where Things Stand
- The conference committee has held an initial meeting and resolved several smaller issues. However, negotiators are still working through a document outlining roughly seven pages of differences between the House and Senate versions of the budget.
- Many of the remaining differences involve funding priorities, program allocations, and broader fiscal decisions that intersect with ongoing debates around education finance, affordability, and tax policy.
Why It Matters
- While many of the remaining disagreements are narrower appropriations issues, the final budget negotiations will help determine how lawmakers balance affordability concerns, ongoing program investments, and fiscal pressures heading into the next fiscal year.
- The budget often becomes the vehicle for resolving broader end of session policy negotiations.
What to Watch:
- Budget negotiations frequently accelerate late in session once other major policy bills begin to settle. For now, the sheer volume of unresolved differences suggests negotiators still have significant work ahead before reaching a final compromise.

S.325: Amendments to Act 181

S.325 contains revisions tied to the implementation of Act 181 and Vermont’s evolving land use framework. While not technically required for the operation of state government, there is broad political agreement that the bill is effectively a must pass measure this year.

Where Things Stand
- Areas Where Broad Agreement Appears Likely
  - Repeal of the road rule
  - Repeal of Tier 3 provisions
- Areas Still Likely to Generate Debate
  - Composition of the proposed joint legislative oversight committee, where the House version allocates more seats to House members than the Senate version
  - Length of the extension for interim exemptions
  - Several additional technical but significant implementation details
Why It Matters
- The outcome of these negotiations will shape how predictable and workable Vermont’s land use transition framework is for communities, housing development, infrastructure investment, and economic growth over the next several years.
- Much of the remaining debate is less about whether reforms are needed and more about how implementation authority, oversight, and transition timelines should be structured moving forward.
What to Watch
- While many observers expect agreement on the bill overall, some of the implementation details could become significant points of negotiation because they will directly shape how Act 181 functions in practice.

H.955: Education Transformation

H.955 is the Legislature’s major education transformation proposal and represents one of the broadest attempts in years to address education governance, affordability, and long-term system sustainability. While the bill still needs to fully clear the Senate, a conference committee already appears highly likely.

Where Things Stand
- Pace and Structure of Education Transformation
  - The House version emphasizes a more voluntary, locally led approach to district restructuring with greater flexibility and a longer transition timeline.
  - The Senate Finance proposal moves toward a more state directed framework with firmer timelines and stronger expectations around regional governance changes.
- Education Finance and Governance Changes
  - The Senate version goes further on regional assessment districts, property tax structure changes, and long-term school construction planning.
  - The Senate proposal also gives Cooperative Educational Service Areas (CESAs) a larger operational role as part of a broader statewide restructuring strategy.
- Underlying Philosophical Divide
  - The House approach prioritizes local flexibility and gradual transition.
  - The Senate is signaling greater urgency around affordability pressures, declining enrollment, and long-term fiscal sustainability.
Why It Matters
- Education costs and governance structure remain central drivers of Vermont’s broader affordability challenges, including pressure on property taxpayers, employers, and local communities.
- The decisions made in H.955 could shape Vermont’s education system and fiscal structure for decades.
What to Watch
- These differences will likely require a conference committee to resolve. However, with Governor Phil Scott already signaling that even if the Senate version does not go far enough, a conference committee is unlikely to be the end of the education transformation debate this year.

While several other bills remain under active debate, the measures now moving through conference committees are among the most consequential remaining pieces of unfinished business this session. At this point, the pace of adjournment will largely depend on whether negotiators can bridge differences on education finance, the state budget, land use implementation, and several politically sensitive policy questions that remain unresolved between the two chambers.

May 15, 2026

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Issue Updates from the State House | Week of May 11, 2026

May 15, 2026

Issue Updates from the State House | Week of May 11, 2026

May 15, 2026May 15, 2026

Issue Updates from the State House

Week of May 11, 2026

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

Noncompete: The Senate advanced S.230, removing language that would have prohibited noncompete contracts for nonexempt employees noting the lack of time for Senate committees to dive into complex and impactful legislation. The bill now returns to the House.
Data Privacy: The House Commerce and Economic Development Committee reviewed a new draft of S.71 this week that continued to fall short of a regionally compatible approach to consumer data privacy. With time running short in the session, the path forward for the bill this year is becoming increasingly uncertain.
Event Ticketing: The House concurred with the Senate-passed version of H.512. The bill now moves to the governor’s desk.
Economic Development: The Senate concurred with House-passed amendments to S.327, advancing several workforce and industry priorities while introducing new business tools and targeted program changes. The bill now moves to the Governor’s desk.
Health Care Savings: The House Health Care Committee advanced S.190, directing hospital rate reductions toward Qualified Health Plans and teachers. As a result, the wider commercial market will see comparatively slower relief in the coming year. The bill has now moved to the House Ways and Means Committee.
Property Classifications: The Senate Finance Committee reviewed H.955, adopting an amendment clarifying that lodging establishments will fall under the same classification as other business properties when new classifications are implemented. While previously assumed, the clarification provides important long-term certainty for lodging properties.
Housing: Legislative committees continued work on S.328 and H.775, moving an off-site construction pilot to the Treasurer’s Office, refining multiunit construction regulations, and maintaining current funding structures for VHIP rather than allowing advance funding.
Bottle Bill: Following changes adopted by the Senate Natural Resources Committee, the Senate Finance Committee took testimony this week on H.915, which would restructure Vermont’s bottle redemption system through a Producer Responsibility Organization model. The proposal would add an additional one cent per container at checkout for consumers and impose an estimated $2 million in new costs on beverage manufacturers. A broad coalition of small businesses has signed a petition urging lawmakers to reject the bill over concerns about higher costs and operational impacts.
Wetlands: The Legislative Committee on Administrative Rules (LCAR) continued review of proposed wetlands rules updates addressing housing shortages, discouraging sprawl, and preserving wetlands. LCAR indicated that they would be ruling negatively on the rule leaving the current hyper regulatory rules in place.
Cannabis: The House Government Operations and Military Affairs Committee advanced S.278, amending the bill to allow only five cannabis event permits annually, addressing potential risks and implementation challenges that may arise. The bill now moves to the House Ways and Means Committee.

May 15, 2026

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Data Privacy: Movement, But Major Decisions Ahead

May 8, 2026

Data Privacy: Movement, But Major Decisions Ahead

Data privacy negotiations are entering a more active and consequential phase in both chambers, with signs of alignment emerging alongside continued areas of concern.

In House Commerce, there is a clear shift underway to move away from draft 2.3 and back toward a framework closer to S.71 as passed by the Senate, incorporating updates adopted in Connecticut since the bill has remained in committee for more than a year. This recalibration reflects meaningful progress toward a more regionally aligned baseline.

At the same time, early committee conversations underscore that several key policy decisions remain unresolved. Even within this broader shift toward alignment, significant areas of uncertainty will shape the bill’s overall impact. It remains unclear what data minimization standards will be included in a new draft. There is also ongoing uncertainty around the scope of sensitive data, particularly where Vermont may seek to expand beyond regional norms. The potential reintroduction of a private right of action adds further complexity, as does the evolving approach to exemptions, including the treatment of health data and HIPAA-related entities. Additional questions remain regarding processor obligations, contractual requirements, and how emerging provisions related to artificial intelligence and automated decision-making may ultimately be incorporated.

In parallel, the Senate is considering advancing a separate path with a data privacy amendment to proposed data broker legislation. That effort is occurring alongside broader discussions about integrating elements of S.71, with some senators emphasizing the importance of passing a regionally consistent bill this year rather than risking another session without action.

Outside of the committee process, the broader campaign around this legislation has shifted from substantive policymaking to political theater. A group calling itself “The People vs. Big Tech” has pushed inflammatory attacks against Vermont businesses, business advocacy groups, and others that have engaged on this issue in good faith for years. Led by a sitting legislator and amplified through coordinated advocacy networks, the campaign has relied more on public attacks and performative rhetoric than serious policy engagement.

At the center of the campaign are out-of-state attorneys, consultants, and advocacy interests that stand to benefit financially and politically from a first-in-the-nation framework, regardless of the consequences for Vermont businesses. Rather than advancing informed debate, the campaign has attempted to reduce a complex policy issue into simplistic messaging designed to generate outrage, not solutions.

Despite this dynamic, committee members in the house and the senate have remained focused on the actual policy questions and the practical implications for Vermont consumers and businesses, which will be critical to reaching a balanced and workable outcome.

Across both chambers, a consistent theme emerges. There is growing recognition that regional compatibility matters, particularly for businesses operating across state lines. Vermont employers have reinforced this point directly, with more than 100 businesses signing onto a letter urging policymakers to align with neighboring states and avoid creating an outlier regulatory framework.

The trajectory is moving in a more constructive direction, but the outcome will hinge on the details. Whether the final bill reflects a balanced, regionally consistent approach or introduces new and untested provisions will determine both its viability this session and its real-world impact on Vermont’s business climate.

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BEYOND THE RHETORIC

Same Vehicle, New Paint; Senate Education Committee Inches Toward Reform

May 8, 2026May 8, 2026

Same Vehicle, New Paint: Senate Education Committee Inches Toward Reform

The Senate Education Committee’s approach to education reform reflects a long-standing pattern in Vermont; broad agreement that the system must evolve, paired with continued reliance on incremental or locally driven changes rather than structural reform at scale.

Last year, Vermont committed to transitioning toward a foundation formula to improve affordability and long-term sustainability. That commitment came with the understanding that if the state was going to ask taxpayers and school districts to operate within a new funding model, governance structures would need to evolve as well. Instead, much of the current conversation in committee has focused on refining the House’s approach rather than advancing structural change, largely preserving a voluntary path to district consolidation.

The House has framed its position through H.955 as a locally led path forward, emphasizing movement toward scale, greater statewide cohesion, and providing communities with the tools to make decisions about the future of their schools. These are important goals. The question now is whether a largely voluntary, process-driven model will deliver those outcomes at the pace and scale required.

For businesses, the stakes extend beyond education. Runaway education spending in recent years have driven affordability challenges for employers and employees alike as property taxes have risen to pay for these continued increases. The Vermont Futures Project Economic Action Plan identifies affordability and fiscal sustainability as essential to improving the state’s economic trajectory, while the Competitiveness Dashboard shows Vermont lagging nationally in economic momentum. Without meaningful cost containment, these challenges will continue to hinder the state’s ability to attract and retain businesses and workers.

The Senate Education Committee’s approach relies heavily on regional study groups to explore mergers and other changes. While the committee strengthened participation requirements and the study process, the core framework remains unchanged: districts are encouraged, but not required, to pursue consolidation.

The bill also advances important conversations around career and technical education and access to workforce pathways. Strengthening these connections is critical, as Vermont employers consistently identify workforce availability and skills alignment as top constraints.

However, the proposal offers limited certainty that the system will achieve the efficiencies needed to stabilize costs over time. A process-heavy approach may build consensus, but it is unlikely to produce near-term savings. For businesses already managing high costs in health care, housing, and taxation, continued uncertainty in escalating property taxes adds to an already challenging environment.

Without clearer movement toward governance reform, Vermont risks layering new funding expectations onto a system not designed for current demographic and fiscal realities. This has direct implications for competitiveness, making it more difficult for employers to invest, grow, and recruit talent.

Vermont has spent years studying education reform. The question now is whether the state is prepared to move from alignment on goals to implementation that delivers measurable savings, stronger workforce outcomes, and a more competitive business climate.

May 8, 2026

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Issue Updates from the State House | Week of May 4, 2026

May 8, 2026May 8, 2026

Issue Updates from the State House

Week of May 4, 2026

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

Yield: A Committee of Conference was established to reconcile differences between the House and Senate passed versions of H.949, including average property tax increases, the use of one-time funds for tax buydowns, and excess spending threshold provisions.

Budget: A Committee of Conference met briefly to begin reconciling differences between the House and Senate passed versions of H.951. As discussions continue, maintaining focus on cost-effective workforce and housing programs will be necessary to ensure long-term economic growth.

Tax Conformity: A Committee of Conference was established to reconcile differences between the House and Senate passed versions of H.933. While differences remain, both versions contain important tax conformity updates, such as expansion of the R&D tax credit, reflecting meaningful progress toward strengthening Vermont’s economic competitiveness.

Act 250: The House advanced S.325, continuing land use reform momentum, maintaining 2028 interim exemptions, and repeals of tier 3 and the road rule. The bill now returns to the Senate.

Event Ticketing: The Senate advanced H.512, moving forward a bill aimed at curbing excessive resale prices of event tickets and strengthening consumer protections for venues using online ticketing platforms. The House is now reviewing the changes made in the Senate.

Sister State: The Senate advanced H.674, continuing progress on establishing a process for fostering mutually beneficial relationships between Vermont and other governments. The bill now advances to the Governor’s desk.

Vocational Rehabilitation: The Senate concurred with the House’s changes to S.173, advancing a bill that will maintain vocational rehabilitation program stability while evaluating potential improvements. The bill now advances to the Governor’s desk.

Housing: The House Ways and Means Committee reviewed S.328, considering amendments to codify the rental revolving loan fund into state law and make technical adjustments to the CHIP and TIF programs. These changes would clarify that the programs may be used alongside special assessment bonds, helping improve access to financing tools for housing and development projects.

Unavoidable Use: The Senate Natural Resources and Energy Committee considered an amendment to S.928 that would add a process for businesses affected by the 2032 phaseout of fluorine-treated containers to seek special exemptions to the ban when no viable market alternative exists. This added flexibility could help businesses continue operations in 2032 where suitable replacements are not yet available.

Healthcare Savings: The House Health Care Committee continued review of S.190, moving closer to directing hospital reimbursement rate reductions toward Qualified Health Plans and teachers rather than distributing savings more broadly across insurance markets. With high healthcare costs affecting employers and employees across all markets, concentrating savings within a limited segment could slow broader affordability relief for the wider commercial market.

Association Health Plans: The Senate Finance Committee continued review of H.585, discussing potential benefits of Association Health Plans as an additional option for businesses seeking to manage rising healthcare costs. While the proposal could improve affordability for employers and employees alike, the bill remains in committee with only one week left in the session.

Telecommunications: The Senate Finance Committee continued review of H.527, considering how best to streamline processes for continued broadband expansion and whether to keep projects out of the Act 250 process for another four years as proposed by the House. Only one week remains to advance this policy.

Noncompete: The Senate Economic Development, Housing, and General Affairs Committee continued review of S.230, considering adding language from H.205 that stalled in the House and would broadly prohibit non-compete agreements with limited exceptions. It is unclear if there is a Vermont specific problem this language addresses that is not currently covered by current law and the judicial system.

Private Equity in Healthcare: The Senate Health and Welfare Committee advanced H.583, adding flexibility but maintaining problematic precedent relating to regulation and reporting requirements for privately owned businesses. The bill now moves to the Senate Floor.

Bottle Bill: The Senate Natural Resources and Energy Committee continued work on H.915, a proposal that could increase costs for beverage distributors through changes to the state’s beverage container redemption system. Similar proposals have previously been vetoed by the Governor amid concerns over increased costs for consumers, retailers, and distributors.

Water Connections: The House Ways and Means Committee advanced S.212, helping reduce delays and costs associated with permitting and development processes. The bill now moves to the House Floor.

Wetlands: The Legislative Committee on Administrative Rules continued review of proposed wetlands rules updates, weighing the balance between environmental protection and reducing barriers to housing development through streamlined permitting timelines and processes. These changes would support development in growth areas, affecting only 0.2% of Vermont, while helping address housing shortages, discouraging sprawl, and preserving wetlands.

May 8, 2026

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CTE Reform Makes Progress

May 4, 2026May 1, 2026

CTE Reform Makes Progress

As Vermont continues to face persistent workforce shortages and growing economic competitiveness challenges, Career Technical Education (CTE) reform has taken on renewed importance as a key part of the state’s long-term strategy.

Legislation advancing through the State House in S.313 reflects meaningful progress toward strengthening Vermont’s CTE system. After initial action in the Senate, the House Commerce and Economic Development Committee advanced a revised version of the bill, now under consideration in the House Education Committee.

The proposal brings together priorities from legislators, the Agency of Education, and the Vermont Association of Career and Technical Education Directors (VACTED), marking a notable step forward on an issue that has seen years of varied approaches. It moves to address longstanding challenges in the CTE system, expanding access, improving consistency in how CTE credits count toward graduation requirements, and creating a pathway and future accountability system moving CTE towards broader finance and governance reform.

This convergence is significant. After years of fragmented recommendations, stakeholders have coalesced around a shared direction that keeps CTE reform moving forward while positioning it to align with broader education reform efforts underway in the Legislature.

From a workforce perspective, the stakes are clear. Strengthening CTE is vital for retaining the students already here and creating clear, accessible pathways into the workforce. The Vermont Futures Project Economic Action Plan identifies workforce availability as a primary constraint on economic growth, driven by demographic decline and limited population growth. Expanding access to CTE and strengthening connections between education and career pathways will be essential to building and retaining a skilled workforce.

While the bill does not yet implement full structural reform, it reflects coordinated progress and growing recognition across the Legislature of the value of CTE and career pathways. The value of CTEs is also reflected in related efforts, such as the proposed hospitality and culinary apprenticeship pilot in this year’s economic development bill, which begins to connect education programs more directly with in-demand careers and highlights how career pathways can evolve to meet workforce needs.

The progress reflected in this bill continues momentum for CTE and sets a foundation for broader reform in future years. As the Legislature continues its work on education policy, building on this collaboration through clear decisions on funding, governance, and system design will be key to strengthening Vermont’s workforce pipeline and long-term economic competitiveness.

May 1, 2026

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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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House Commerce Reviews New Draft of Data Privacy Bill

May 8, 2026April 24, 2026

House Commerce Reviews New Draft of Data Privacy Bill

The House Commerce and Economic Development Committee has begun taking up S.71, Vermont’s comprehensive data privacy bill, signaling the issue will be a central focus in the final weeks of the legislative session. The committee walked through a newly proposed draft, providing the first substantive look at how the House may approach the legislation this year.

S.71 was passed unanimously by the Senate early last year, reflecting a careful approach that aimed to balance strong consumer data protection with the operational realities facing Vermont businesses. When the bill was last taken up in the House at the end of the previous session, a proposal was introduced to strike all of the bill’s language and replace it with a significantly more expansive framework, but no further action followed.

The newly discussed draft continues to include provisions that go beyond what is currently in place in other states, raising significant concerns about regional compatibility, compliance burden, and the potential impact on Vermont’s business competitiveness. These issues are central to the viability of the bill and are expected to require substantial discussion and refinement in the weeks ahead.

The stakes remain high for the business community. Data privacy policy continues to evolve rapidly across states, and the structure of Vermont’s approach will have direct implications for competitiveness, compliance costs, and the ability of businesses to effectively operate in a digital economy. The broader policy context also remains relevant.

Two years ago, a more expansive data privacy proposal was vetoed by Governor Phil Scott due to concerns about its impact on businesses and the state’s economic climate. There has been no indication that the Administration’s position has shifted, underscoring the importance of a pragmatic and durable approach as the House considers next steps.

Importantly, committee leadership has indicated a clear intent to work collaboratively with Vermont stakeholders to refine the bill. That approach comes at a critical point in the session, where timing and policy complexity will require focused engagement to reach a workable outcome.

As deliberations continue, the coming weeks will be critical in determining whether S.71 can take shape in a way that aligns consumer protection with economic realities. The Vermont Chamber and its members have been consistently engaged on this issue and looks forward to continued engagement with the House Commerce and Economic Development Committee to support a balanced path forward that works for both Vermonters and Vermont employers.

April 24, 2026

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Omnibus Economic Development Bill Advances Through Key Committees

May 11, 2026April 24, 2026

Omnibus Economic Development Bill Advances Through Key Committees

With the session entering its final stretch, S.327 is 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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RECENT NEWS

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