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

January 30, 2026

Issue Updates from the State House

Week of January 27, 2026

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

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.

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House Health Care Debate Puts Employer Costs Back in Focus

January 30, 2026January 30, 2026

House Health Care Debate Puts Employer Costs Back in Focus

The House Health Care Committee took up the Scott Administration’s health care reform proposal, H.585, with testimony revealing sharp skepticism from lawmakers and high stakes for employers and self-employed Vermonters navigating rising costs and limited options.

The Vermont Chamber was at the table to elevate how these policy decisions affect employers’ ability to offer coverage, compete for workers, and manage costs in a market that continues to narrow. As reflected in the 2025 Vermont Business Climate Survey, health care affordability remains one of the most significant challenges facing Vermont businesses.

Employer Impacts Frame the Vermont Chamber’s Testimony

Testimony emphasized that Vermont’s health insurance market remains constrained, with limited choice and persistent cost pressure leaving employers little flexibility at renewal. Businesses are already making difficult decisions about benefit offerings, wage growth, and expansion as premiums continue to rise.

At the same time, the Vermont Chamber acknowledged the monumental work the Legislature undertook last year to address health care costs and system sustainability. Those reforms laid important groundwork, but testimony stressed that employers are still feeling acute pressure today — underscoring the need to continue exploring additional tools that could expand choice and slow cost growth.

Association Health Plans and Other Tools Under Scrutiny

Much of the committee’s attention centered on the association health plan provisions of H.585. The Vermont Chamber highlighted Vermont’s past experience with fully insured, well-regulated association health plans, noting that limited participation did not destabilize the market but did provide additional choice for employers and self-employed Vermonters.

The committee also heard divided testimony on other elements of the Administration’s proposal, including limited age rating flexibility, site-neutral billing, and the potential pursuit of a federal reinsurance waiver. These provisions prompted a wide range of questions about market impacts, equity, and system stability, and the Vermont Chamber continues to evaluate how they may affect employers.

Committee Pushback and Administration Response

The House Health Care Committee expressed significant skepticism toward several components of H.585, raising concerns about unintended consequences and market disruption. As discussion grew increasingly dismissive of exploring alternative approaches, the Administration underscored the urgency of the moment.

Department of Financial Regulation Commissioner Kaj Sampson pointed to decades of data showing the path is unsustainable. He warned that declining to consider different options amounts to accepting a system that is not working:

“The data that’s really driving us, where we’ve been in the last 40 years and where we are today, shows us that we are not on a sustainable path… failure to entertain these different options or other options… is an acknowledgment that the path we’re on is acceptable and it simply is not.”

From the Vermont Chamber’s perspective, narrowing the range of policy tools, whether related to plan choice, payment reform, or market participation, risks reinforcing a system that continues to deliver high costs and limited options for employers and workers.

What Comes Next

As the House Health Care Committee continues its work on H.585, the Vermont Chamber will remain focused on advocating for policies that build on last year’s reforms while addressing the affordability pressures that face employers and the state’s large population of sole proprietors.

The Vermont Chamber encourages employers and self-employed Vermonters to share how health care costs and coverage availability are affecting their businesses. Employer experiences remain critical as lawmakers decide which tools — if any — to move forward. If you have a story to tell, contact us at msullivan@vtchamber.com.

January 30, 2026

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

January 23, 2026

Issue Updates from the State House

Week of January 20, 2026

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

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.

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The State of Health Care as the Legislature Gets to Work

January 23, 2026

The State of Health Care as the Legislature Gets to Work

As the 2026 legislative session begins, health care costs remain one of the most pressing challenges facing Vermont employers. Open enrollment closed last week, and early feedback from Vermont Chamber members is consistent: costs are crushing, and there are no easy choices. Large group plans increased by an average of roughly 15 percent, small group plans also rose, and the loss of federal subsidies forced many sole proprietors and employers into impossible decisions to cover plans they couldn’t afford or drop coverage all together.

While rising health care costs are a national issue, Vermont remains an outlier on both cost and competitiveness. Vermont has just two insurance carriers and offers only 13 plans, while New Hampshire employers can choose from 78. Monthly family premiums in Vermont can exceed $2,756, significantly higher than comparable plans just across the border. For small employers, the impact is severe: a five-person business can pay more than $8,500 per month for coverage alone. These differences are not abstract. They show up in constrained wage growth, delayed investments, and difficult conversations with employees every renewal cycle.

Last year, the Legislature took meaningful steps to address health care costs, resulting in more than $200 million in hospital operational savings. Hospitals have identified another $100 million in potential reductions over the next two years. In that period hospitals will transition to reference-based pricing, an important structural reform. These changes matter, but they take time to translate into lower premiums, and employers are feeling the strain now.

This session must focus on what comes next to continue bending the cost curve. Strengthening primary care is a critical conversation. Greater access to primary care can reduce reliance on high-cost hospital services, improving outcomes while lowering system-wide costs. A bill under consideration in the Senate explores financial supports for primary care that can’t come on the back of already stressed commercial payers. This plan also raises a fundamental question: How do we attract and retain physicians in Vermont if broader economic conditions make it difficult to live and work here? Housing availability and tax policy are not side issues; they are central to solving Vermont’s health care workforce challenges.

Lawmakers are also considering a far-reaching bill related to private equity in health care with significant implications for providers, patients, and employers alike. Given its scope, the House Health Care Committee will take significant time to fully understand its implications and work through serious unintended consequences.

Any serious effort to reduce premiums must address the size and stability of the insurance risk pool. This would include reestablishing association health plans that employers relied on for decades to access competitive plans. Additional proposals could bring teachers and municipal employees into the pool. As businesses and working Vermonters are being asked to make increasingly difficult choices, it is essential that those whose salaries are supported by tax payments from employers and employees alike are open to actively partnering in solutions.

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

January 16, 2026January 16, 2026

Issue Updates from the State House

Week of January 13, 2026

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

Land Use: The Senate Economic Development, Housing, and General Affairs committee reviewed updates to Act 250 regulations through Act 181. The Vermont Chamber is asking for specific technical corrections to Act 181 to achieve the legislative goal incentivizing critical housing creation in smart growth areas while also protecting critical natural resources in areas of statewide significance.
Housing: The House General and Housing committee continued to take testimony on what is working, and what is still needed to address Vermont’s housing crisis. With the robust input received, the committee is expected to start working on housing specific legislation in the coming weeks.
Employment Options for Newly Released People: The House Commerce and Economic Development and House Corrections and Institutions Committees heard testimony on vocational, training, and educational programs for individuals reentering the workforce after incarceration. These programs play a critical role in boosting workforce participation.
Tax Classifications: The House Ways and Means Committee heard testimony on the Property Tax Classifications Implementation Report, outlining the extensive resources needed to add a third classification targeting second homes by 2028. Many challenges need to be addressed before implementation, including unfunded town mandates, creation of dwelling use attestation forms for properties with over 4 dwelling units, and employee housing.
Mileage-Based User Fees: As Vermont prepares to transition from a flat annual EV fee to a per-mile EV charge in 2027, the Senate Transportation Committee heard testimony on implementation strategies.
Data Brokers: The House Commerce and Economic Development Committee has begun testimony on H.211, a data broker bill that, as amended, dramatically expands the definition of “data broker” and changes standing definitions. The existing data broker law was the result of hundreds of hours of stakeholder and lawmaker collaboration to carefully construct definitions that will not have unintended consequences. The draft throws out that work. The Vermont Chamber will be watching this bill to ensure necessary due diligence is done.
Education Spending: The Senate Finance Committee reviewed S.220, a bill that would cap education spending growth in 2028 and 2029 to help limit property tax increases. The proposal has faced strong opposition from education stakeholders, and from some members in committee. However, addressing Vermont’s affordability crisis will require confronting the unsustainable growth in education spending, and spending caps are increasingly viewed as a necessary if difficult step toward greater fiscal discipline and predictability for taxpayers.
Vermont Employment Growth Initiative (VEGI): The Senate Finance committee reviewed S.225, a bill that would repeal the sunset of the VEGI program. Making the program permanent would ensure continued access to this key economic development tool for business expansion and job creation.
Mediation Services: The Senate Economic Development, Housing, and General Affairs Committee reviewed S.173, 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.
Advance Vermont: The Senate Economic Development, Housing, and General Affairs committee heard testimony from AdvanceVT on MyFutureVT, a program offering free online resources to support education and career advancement. Businesses are encouraged to use this tool to support employee retention and skills development efforts.
Permit Modernization: The House Environment committee heard testimony on modernizing Vermont’s housing permitting system, focusing on increasing cross-agency coordination, data entry, and consolidation of permit processes to a single point of entry using shared data. With development of a pilot program underway, agencies hope to reduce time and cost associated with building housing units.
Telecommunications: The House Energy and Digital Infrastructure committee heard testimony on H.527, a bill that extends the sunset on the Public Utilities Commission’s authority to approve telecommunications projects, keeping applications outside of the lengthy ACT 250 approval process. Preserving this authority ensures continued expedited procedures for broadband expansion and rural infrastructure investments.
Commercial Property Assessed Clean Energy Projects (C-PACE): The Vermont Chamber testified before the Senate Natural Resources Committee 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 their property tax bill.
Hospital Budgets: The House Health Care Committee received updates on last year’s legislation aimed at reducing hospital budgets and implementing a reference-based pricing model by 2028 in efforts to lower insurance rate increases and improve healthcare costs for Vermont ratepayers.
Revenue Forecast: The Vermont Emergency Board, House and Senate Appropriations, House Ways and Means, and Senate Finance committees reviewed an update to the state revenue forecast indicating revenue will be on par with previous estimates. Corporate income tax is expected to come in behind estimates, underscoring the need for stable and predictable policies to reduce further strain on the business community.

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Issue Updates from the State House | Week of January 6, 2026

January 12, 2026January 9, 2026

Issue Updates from the State House

Week of January 6, 2026

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

Groundwater: The Legislative Committee on Administrative Rules approved a rule change tightening groundwater enforcement standards for certain PFAS chemicals. The new rules exclude wastewater, stormwater, and sewage, but stricter standards could affect businesses with indirect discharge permits or other PFAS-related discharges.
Electricity Storage: The Legislative Committee on Administrative Rules approved a new rule establishing guidelines for energy storage.
Budget Adjustment Act: Legislators heard testimony as part of the annual Budget Adjustment Act process, an annual mid-year adjustment to the current budget. In a letter to House and Senate Appropriations committees, the Governor emphasized preserving as much of the $75 million surplus as possible to help offset a projected 12 percent property tax increase in the upcoming budget cycle.
Noncompete: The House Commerce and Economic Development committee reviewed findings from the Non-Compete Agreements Study Committee, which concluded that non-compete agreements are appropriate for high-wage employees with access to proprietary information. The Vermont Chamber will work to ensure any legislation preserves employers’ ability to protect sensitive business information.
Franchisors: The House Commerce and Economic Development Committee heard testimony on potential regulation of franchisors. Vermont lacks data on the number and structure of franchises operating in the state, making it difficult to assess the scope or justify a new regulatory program.
Event Ticket Marketing: The House Commerce and Economic Development committee resumed testimony on H.512, a bill aimed at reining in the marked-up resale of event tickets. The Vermont Chamber will continue to closely monitor this issue as the bill develops.
Rural Health Care: The House Health Care Committee heard testimony on the federal Rural Health Transformation Program grant, which will provide Vermont with $195 million annually for the next five years. The funding will support rural hospital improvements, bolster the rural health workforce, and modernize rural health systems.
Convention Center Task Force: The House Commerce and Economic Development and Senate Economic Development Housing, and General Affairs committees reviewed the Convention Center Task Force report, which identified Burlington as the most feasible location for a convention center after input from industry stakeholders. Securing a viable funding model remains a significant challenge.
Transportation Fund: The House Ways and Means and House Transportation Committees heard testimony on growing shortfalls in the Transportation Fund. Without increased funding, Vermont risks losing federal match dollars, and over 50 percent of state-maintained roads are projected to fall into poor or worse condition within the next five years.
Community and Housing Infrastructure Program (CHIP): The House Commerce and Economic Development and House General and Housing Committees heard testimony on the rollout of the Community and Housing Infrastructure Program (CHIP), established last session. The program allows municipalities and qualified sponsors to invest in infrastructure that supports housing development, with applications set to open at the end of the month.

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State of the State

January 9, 2026

State of the State

Governor Phil Scott’s State of the State on January 7 focused on education and Vermont’s affordability challenge, highlighting a growing disconnect between rising costs and student outcomes. With one-time federal funds exhausted and federal uncertainty looming, the Governor emphasized fiscal discipline, accountability, and implementation, particularly in education, as essential to restoring affordability and predictability. The message was clear: Vermont can no longer sustain rising costs without corresponding improvements in outcomes.

As the Vermont Chamber has shared with members and communities statewide, the Vermont Chamber supports policy that leads to strategic growth of people and places. As the state’s largest business advocacy organization, we focus on turning planning into policy and policy into progress. Through the Vermont Economic Action Plan and a data-informed, member-driven legislative agenda, the Chamber continues to advance affordability, opportunity, and long-term economic resilience.

Rising public costs, especially in education, show up in immediate and tangible ways for businesses. Higher property taxes, constrained housing supply, intensified workforce pressures, and increased difficulty planning for the future are now common challenges. The Governor’s call to complete education transformation aligns directly with the Chamber’s first legislative priority, Economic Abundance Through Fiscal Stewardship, recognizing that bending the cost curve frees up resources for housing, infrastructure, and tax relief.

The State of the State made clear that achieving those outcomes will not be easy or smooth. The Governor underscored that completing Act 73, last year’s education reform law, requires meaningful structural change, including district mapping and governance reform. He emphasized that the current system was built for a Vermont that no longer exists and signaled a willingness to use veto authority if reforms stall.

House Democratic leadership, speaking at a press conference, reinforced a shared focus on affordability, housing, health care, and public education, while signaling a more cautious approach to implementation. Speakers emphasized transparency, data review, and continued engagement with Vermonters, noting that many details remain under consideration as the session begins.

Legislative leaders, while reaffirming support for Act 73 and education quality, offered responses that suggested less alignment on timelines and tools. Questions around district mapping, spending thresholds, and property tax relief highlighted early tension with the Administration’s insistence that maps be treated as an essential next step, rather than a longer-term consideration.

While there is broad agreement that change is required, success this session will depend on moving beyond shared diagnosis to shared execution. Education costs ripple through property taxes, housing affordability, workforce availability, and long-term competitiveness, underscoring the Chamber’s priorities around workforce and housing alignment and industry competitiveness.

January 9, 2026

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Healthcare Costs and Affordability in Vermont

December 19, 2025December 14, 2025

Healthcare Costs Remain a Central Affordability Challenge for Vermont Employers

As lawmakers prepare for the upcoming legislative session, healthcare affordability remains one of the most significant pressures facing Vermont’s economy. At a recent Legislative All Member Healthcare Briefing, state leaders, regulators, providers, and stakeholders reviewed the current state of Vermont’s healthcare system, which now totals $2.5 billion and accounts for nearly 30 percent of the state budget when federal dollars are included.

The briefing reinforced the reality employers know well. Vermont’s healthcare system is under strain, and costs continue to rise faster than both wages and national trends. Hospitals and insurers remain financially fragile, community-based care gaps are pushing patients into higher cost emergency and inpatient settings, and access challenges persist across the state. Presenters emphasized that Vermont’s comparatively modest premium increase last year was achieved through one-time interventions, including premium buydowns, drug price caps, and budget reductions. These tools cannot be relied on again.

The Vermont Chamber presented on behalf of the business community, underscoring healthcare costs are now among the top competitiveness challenges for employers statewide. Since 2018, health insurance premiums have increased 10 to 15 percent annually, with the average silver plan rising 169 percent. These sustained increases make long term planning difficult and limit employers’ ability to invest in growth, wages, and workforce benefits.

The Chamber also highlighted that Vermont spends 19.6 percent of personal income on healthcare, the highest share in the nation. This cost burden directly affects hiring, retention, and business expansion, reinforcing concerns raised consistently by employers through the Vermont Business Climate Survey.

The following day, the Health Care Reform Oversight Committee met to examine next steps for reform. Discussions focused on regionalization and coordination as tools to reduce duplication, preserve essential services, and improve efficiency through shared purchasing, aligned clinical design, and modernized data systems. Hospitals outlined commitments to significant cost reductions by 2028 while acknowledging persistent workforce shortages and burnout that continue to challenge care delivery.

As Vermont faces impending federal subsidy changes and Medicaid eligibility shifts, there is growing consensus that incremental, structural reforms are needed to stabilize the system over time. The Vermont Chamber will remain actively engaged to ensure that healthcare reforms advance affordability and access while avoiding further cost shifts onto employers and workers who are already carrying a disproportionate share of the burden.

December 14, 2025

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Choosing Progress: Vermont Chamber’s 2026 Legislative Priorities

December 12, 2025

Choosing Progress: A Unified Path Toward Affordability and Economic Resilience

Vermont can no longer admire the problem. It must act, guided by data, employers, and long-term planning.

Each year, the Vermont Chamber of Commerce sets legislative priorities grounded in one core objective: advancing the Vermont economy. As we enter the 2026 session, Vermont stands at a defining moment. Affordability pressures, demographic decline, and rising operating costs are converging just as our state needs more workers, more housing, and greater predictability to sustain economic growth.

Our work toward long-range strategy began with the Vermont Economic Action Plan, a statewide blueprint shaped by more than 5,000 Vermonters. The plan established a clear vision for a stronger and more affordable future, grounded in data, pairing community insight and measurable targets. It also signaled a pivotal shift in how Vermont approaches economic decision-making. Instead of reacting to problems as they arise, we now have a long-term framework that can guide policy choices and align efforts across the public and private sectors.

This alignment is urgently needed. The Vermont Futures Project’s Competitiveness Dashboard shows Vermont trailing most states in economic outlook, cost competitiveness, and regulatory efficiency. Vermont ranks 49th in Economic Outlook and continues to struggle with slow economic growth, high costs of doing business, and a demographic profile that strains employers and public systems. Results from this year’s Business Climate Survey reinforce this landscape. Employers identified taxes, regulation, labor shortages, healthcare costs, and housing challenges as the most significant barriers to growth.

Many employers voiced concern that the state’s policy direction is disconnected from Vermont’s economic reality, and that they do not feel heard in Montpelier. Business leaders shared examples of policy decisions advancing without a clear understanding of operational impacts. This sentiment reflects a growing disconnect at the same moment Vermont needs alignment around affordability, stability, and long-term economic strategy. It also underscores the essential role the Vermont Chamber plays in bringing employer perspectives to the policy and regulatory tables and ensuring economic policy aligns with economic reality. Addressing Vermont’s challenges requires a sustained commitment to coordinated, data-informed action.

How confident or concerned are you about Vermont’s elected officials understanding of the economic pressures facing businesses?
A post on Datawrapper provided by: https://datawrapper.de

While there is difficult work ahead, progress was made last year on housing infrastructure, workforce programming, and slowing the growth of healthcare costs. While these advances were important, they are not enough on their own. Vermont must shift from episodic decision-making to a consistent, long-range economic strategy. The Economic Action Plan provides that roadmap. Paired with disciplined and transparent leadership, it offers a path toward measurable improvements for both families and employers.

Our 2026 legislative agenda reflects this approach and focuses on four core areas aligned with statewide priorities and employer needs:

Economic Abundance Through Fiscal Stewardship
Vermont must adopt predictable fiscal practices that control cost growth and strengthen affordability for families and employers. With state spending up more than three billion dollars in five years, the need for disciplined decision making is clear.

Regulatory Modernization and Predictability
A modernized regulatory system must support timely housing and economic development. Streamlined permitting and clearer rules will reduce costs, shorten timelines, and restore Vermont’s competitiveness.

Workforce and Housing Alignment
Employers report that workforce pressures and housing shortages remain among their highest concerns. Strengthening recruitment and retention requires connecting training strategies, talent attraction, and coordinated housing solutions.

Industry Competitiveness
Manufacturing, tourism, healthcare, technology, and small businesses all face rising pressures. Strategic investments in infrastructure, innovation, and cost containment will strengthen these key sectors.

As we begin the 2026 session, Vermont faces a choice. We need to shift from a scarcity mindset to an abundance mindset. The path forward requires courage, collaboration, and a commitment to measurable progress. Employers are ready to be partners in this work. Policymakers must be equally ready to align decisions with long-term strategy and economic reality.

Vermont’s future is not predetermined. It is shaped by the choices we make together. The Vermont Chamber stands ready to partner in this work and ensure our state’s economic story continues toward resilience, prosperity, and opportunity for all.

December 12, 2025

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July 16, 2025July 15, 2025

Vermont Chamber Releases 2025 Session Legislative Outcomes Report, Focuses on Affordability, Reform, and Resilience

Montpelier, VT (July 15, 2025) – The Vermont Chamber of Commerce has released its 2025 Session Legislative Outcomes Report, a comprehensive review of key policy developments that impacted the state’s business environment during the recent legislative session.

“As we reflect on the 2025 legislative session, we are reminded of both the responsibility and the opportunity that come with representing Vermont’s diverse and resilient business community,” said Amy Spear, President of the Vermont Chamber of Commerce.

In a year defined by escalating fiscal pressures, a deepening affordability crisis, and a $9 billion state budget, the Vermont Chamber remained focused on championing a pragmatic, data-informed policy agenda. The rising cost of living, a severe housing shortage, and unsustainable healthcare and education expenses require more than short-term fixes. These challenges demand durable, systemic solutions that prioritize growth and elevate the voices of Vermonters, whether heard around family tables, in boardrooms, or on the factory floor.

This session unfolded in the shadow of expiring federal relief funds and prolonged legislative deliberations. Yet, through it all, the Vermont Chamber maintained a steady course: advocating for smart housing development, protecting businesses from disproportionate tax burdens, and initiating the long-term work of bending the cost curve in education and healthcare.

The report details how the Vermont Chamber helped collaboratively shape outcomes in areas including taxation, labor law, housing, healthcare, technology, and economic development, while remaining steadfast in protecting businesses from harmful mandates and excessive fiscal burdens.

Gains were possible during the session because Vermont Chamber members were engaged, vocal, and resolute. Despite a continued pattern of high spending, with new mandates and regulatory burdens, the Legislature delivered new opportunities in housing and infrastructure development, and reforms in education and healthcare. The Vermont business community will be shaped for years to come by what happened, and what didn’t happen, this session.

Highlights from the 2025 Session Legislative Outcomes Report:

Legislative Engagement: Vermont Chamber staff testified 39 times before committees and monitored 865 committee hearings. Eight legislative interns also joined the Vermont Chamber team this session, strengthening advocacy capacity.
Affordability Through Critical Reform: The Vermont Chamber helped steer policies addressing healthcare cost containment, education funding, stormwater compliance flexibility, and tax fairness, ensuring that reforms advanced without placing disproportionate burdens on employers.
Incremental Progress on Long-Term Goals: Laws impacting chemical regulation, health system oversight, and environmental permitting demonstrated where constructive compromise was possible. The Vermont Chamber remained at the table to promote pragmatic, step-by-step progress.
Innovative Solutions for People and Places: The Vermont Chamber championed investments in housing infrastructure, workforce development, and sustained support for tourism, trade, and entrepreneurship. These priorities are grounded in the long-term vision of the Vermont Futures Project Economic Action Plan. They underscore Vermont’s imperative to attract and retain talent while fostering vibrant communities and improving affordability. The plan presents a dual framework focused on people and places, with actionable strategies to recruit and retain working-age residents, increase labor force participation, expand housing and infrastructure, and align policy with evolving community needs. Advancing these strategies is essential to strengthening affordability, enhancing community vitality, and securing a more prosperous future.
Removal of Harmful Proposals: Unified advocacy helped remove a proposed business-only property tax classification from major education legislation and paused efforts to implement sweeping employer mandates that would have increased costs.

“As we look to 2026, we’ll continue leading with transparency, determination, and collaboration,” added Spear. “From affordability to abundance and innovation, Vermont’s economic resilience depends on policies that reflect the realities of doing business in our state. Our mission remains clear: to ensure all Vermonters have the opportunity to thrive.”

The report also outlines pending legislation expected to be revisited next year, including non-compete agreements, data privacy, and climate regulation, and reinforces the Vermont Chamber’s ongoing commitment to advocating practical, systemic solutions at the State House.

July 15, 2025