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Housing Bill Amendment Moves in the Wrong Direction

Housing Bill Amendment Moves in the Wrong Direction

“Bureaucracy is the death of any achievement.” — Albert Einstein

Einstein’s warning feels especially relevant this week as legislative changes threaten to derail a key housing development tool when Vermont needs it most. As the state continues to grapple with a critical housing shortage impacting businesses and communities statewide, lawmakers focused on refining the Community and Housing Infrastructure Program (CHIP), the latest version of a targeted Tax Increment Financing (TIF) model that has been in development for five years. Designed to fund essential public infrastructure like water, sewer, and roads, CHIP is meant to unlock housing projects that would otherwise remain financially unfeasible. However, recent amendments have added layers of bureaucracy and limitations that risk stalling progress at a time when swift, effective action is essential.

The core principle of TIF is that the increase in property tax revenue generated by a new development (the “increment”) is used to repay the infrastructure bonds, leveraging future growth to finance necessary investments. Without this infrastructure, many housing developments cannot financially move forward meaning the new tax revenue wouldn’t exist anyway.

After the House Ways and Means Committee made sweeping changes to the CHIP proposal, a joint hearing was held by the House Commerce and Economic Development Committee and the House General and Housing Committee. Lawmakers who had spent weeks developing the Senate’s policy framework raised serious concerns, as the amendments appeared to create new barriers rather than improvements.

According to Ways and Means, the changes were intended to provide “reasonable guardrails” on the use of education property tax increment. In practice, the added provisions are more restrictive than protective. Key changes include:

  • Housing Percentage Requirement: Mandates 65% of a project’s floor area be housing, limiting flexibility for rural or adaptive reuse projects.
  • Education Tax Retention Rate: Lowers the retention rate from 75% to 60%, with an optional 80% for deeply income-restricted housing, raising viability concerns.
  • $40 Million Cap: Imposes a total annual cap that may disadvantage under-resourced as well as large communities and limit program impact during a housing crisis.
  • “But-For” Test: Requires developers to prove projects wouldn’t proceed without the incentive, adding new hoops to jump through during a well-documented housing crisis.
  • Sunset Date: Introduces a 2028 end date for the standard TIF program without policy committee discussion, creating long-term uncertainty to an established economic development tool.

The Vermont Chamber is deeply disappointed in the direction this bill has taken. The House Ways and Means Committee’s amendments undermine a carefully negotiated policy intended to spur urgently needed housing in communities struggling with affordability. Rather than advancing a tool to meet the scale of Vermont’s affordability and development crisis, the proposal now adds delay, complexity, and uncertainty. In the remaining two weeks of the session, the Vermont Chamber urges legislators to work collaboratively to move this proposal back into a form that meets the moment—with bold, flexible solutions that support all communities in building desperately needed infrastructure that will support all types of housing.

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

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

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

Sustained Investments Supporting Vermont’s Economy

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

One-Time Investments Supporting Vital Goals

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

Unmet Needs and Shifting Priorities

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

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

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Proposed Housing Infrastructure Program Advances in Legislature

Proposed Housing Infrastructure Program Advances in Legislature

As Vermont employers continue to face workforce shortages driven in part by a lack of available housing, the Legislature is considering a new tool to address this challenge. The Community and Housing Infrastructure Program (CHIP) proposed in S.127 would give municipalities the ability to invest in infrastructure that enables the development of housing, borrowing against future tax revenue rather than increasing taxes. The Vermont Chamber strongly supports this legislation as an innovative solution that could support workforce growth, strengthen communities, and make meaningful use of constrained public resources.

Program Overview:
CHIP is designed to help communities overcome infrastructure barriers that prevent new housing development. If enacted, it would allow municipalities to use future local property tax revenue growth—via a housing-specific form of tax increment financing (TIF)—to fund infrastructure improvements that support housing construction.

Key Components:

  • Municipal Participation: Towns and cities could create housing infrastructure projects, requiring a development plan, public hearings, and local approval.
  • Housing Infrastructure Agreement: A binding agreement would be required between the municipality, developer, and potentially a third-party sponsor.
  • VEPC Review: The Vermont Economic Progress Council (VEPC) would review applications and approve eligible projects based on housing development goals and location criteria.
  • Eligible Infrastructure: Includes utilities, broadband, roads, brownfield remediation, flood mitigation, and other core infrastructure.
  • Financing Structure: Municipalities could borrow against future property tax growth, subject to voter approval, with a portion of both municipal and education property tax increment retained to repay project costs.
  • Oversight and Accountability: Annual reporting and audits would be required, with guidance from VEPC and the Department of Taxes.

Legislative Activity:
In a recent House Commerce Committee hearing, stakeholders emphasized that CHIP could help close Vermont’s $240 million infrastructure funding gap by giving communities a flexible new financing tool without relying on additional state spending. The program is not intended to replace existing funding, but to provide a complementary approach. There was strong support for CHIP’s inclusion of flood mitigation, especially for rural towns, and for its focus on publicly owned infrastructure that benefits residents across income levels. Concerns were raised about provisions that could shift long-term debt to non-governmental partners.

Committee discussion also addressed how the program could help grow local grand lists. Testimony emphasized that the most recent grand list growth has come from property revaluations rather than new development, and that adding housing stock is a more sustainable way to increase the tax base. With Vermont’s state budget under pressure, tools like CHIP offer communities a way to finance needed infrastructure for housing, building long-term capacity and supporting workforce needs without increasing taxes. The Vermont Chamber will continue to engage with and support this legislation as it moves forward.

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Tourism Economy Day Brings Business and Policy Leaders Together at the State House

Tourism Economy Day Brings Business and Policy Leaders Together at the State House

Over 100 tourism and hospitality industry leaders gathered at the State House on April 10 to engage with legislators and raise awareness of the collective contributions of these industries to the Vermont economy. Tourism Economy Day, convened by the Vermont Chamber of Commerce, Ski Vermont and Vermont Specialty Food Association, brought businesses together to advocate for a thriving Vermont visitor economy.

The Vermont visitor economy has a $4 billion annual economic impact and represents 10% of our workforce. In 2023 alone, 15.8 million visitors spent $4.0 billion across lodging, dining, retail, entertainment, recreation, and more. Their spending also contributed $282.3 million in state and local taxes—equivalent to approximately $1,039 per Vermont household. Businesses, legislative leaders, and Administration officials collaborated for a day of advocacy that elevated the collective contributions of the visitor economy to Vermont. Advocacy day highlights included a joint hearing with the Senate Committee on Economic Development, Housing and General Affairs and House Committee on Commerce and Economic Development, a joint resolution recognizing April 10, 2025, as Tourism Economy Day, and an evening food and beverage tasting reception with the Vermont Specialty Food Association.

Rep. Abbey Duke (Chittenden-17), a stalwart supporter of the tourism industry, shared “Vermont’s tourism sector is a cornerstone of our state economy, generating billions in economic activity, supporting tens of thousands of jobs, and enriching our communities. It’s essential for legislators to support policies that foster sustainable growth in tourism, including investments in infrastructure, housing, workforce development, and supporting local businesses.”

“A thriving tourism economy means vibrant communities and a chance for everyone—whether you’re a local or a visitor—to experience the very best of Vermont. However, the industry is facing challenges echoed by so many across the state: an aging declining workforce and a critical housing shortage.” said Amy Spear, President of the Vermont Chamber of Commerce. “It’s crucial that we find a path towards affordability and abundance, improving economic conditions. Vermont’s beauty and charm are undeniable, and together, we can create an environment where both our tourism industry and our communities can thrive for generations to come.”

Business leaders highlighted the following sentiments in their testimonies: the role of tourism supporting Vermont’s economy and communities, the industry’s centrality in providing jobs and making Vermont an appealing destination to both live and visit, and the collective challenges facing businesses in the industry, including: workforce shortages, workforce housing accessibility and affordability, rising taxes and high operating costs and a strained relationship with Canadian neighbors due to federal rhetoric.

“Outdoor recreation is a significant part of Vermont’s tourism economy, driving visits and fueling the economy in many rural parts of our state. In 2023, outdoor recreation accounted for 4.8% of the state’s GDP, or $2.1B annually, and 5.1% of the state’s workforce, according to the US Bureau of Economic Analysis,” said Molly Mahar, President of Vermont Ski Areas Association. “Vermont ranks second only to Hawaii in percent of GDP generated by outdoor recreation, which is largely driven by activities like skiing, snowboarding, hiking, mountain biking, and camping. However, businesses are grappling with workforce and housing shortages, higher costs, and new uncertainty around Canadian visitation levels, which limit growth.”

Additional business and policy leaders that testified were Nina Ridhibhinyo, Director of Programs & Strategy at ECHO, Leahy Center for Lake Champlain, Randy George, Owner of Red Hen Baking Co., Québec Delegate Rene Sylvestre of the Québec Government Office in Boston, Will Kriewald, CEO of Basin Harbor Resort and Boat Club, Abby Long, Executive Director of Kingdom Trails, Kate Trzaskos, Executive Director of Downtown Brattleboro, Vicky Allard, Founder and Executive Chef at Blake Hill Preserves, Steve Wright, President/General Manager at Jay Peak Resort, and Kim Jackson, Director of Communications and Marketing at Vermont Adaptive.

The day ended with a Vermont Specialty Food Association Legislative Tasting, featuring vendors from across Vermont. Karin Cioffi, Executive Director of VSFA shared, “Vermont’s specialty food and beverage producers are a cornerstone of the state’s identity and a driving force behind the visitor experience. Tourists don’t just come for the views, they come to taste Vermont. From handcrafted cheeses to small batch spirits, these products represent the passion, innovation, and resilience of our local businesses. Our evening tasting event at the State House showcased the incredible talent of producers across the state and underscored just how vital this industry is to Vermont’s economy, culture, and continued appeal as a destination.”

Photo Credit for Images 3 and 4: Blake Hill Preserves

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Chamber Priorities Advance in Budget, Gaps Remain

Chamber Priorities Advance in Budget, Gaps Remain

The House passed H.493, the FY26 budget bill appropriating $9 billion. The budget as passed includes investments in housing, workforce, and infrastructure that echo many of the Vermont Chamber’s priorities. However, several important economic development tools were not fully funded, creating gaps that could impact business growth and workforce attraction in the years ahead. As the budget moves over to the Senate, there will be further opportunities to address these gaps.

 Key Investments That Support Vermont’s Economy

  • $7.5 million for the Vermont Housing Finance Agency Rental Revolving Loan Fund to support innovative housing finance models.
  • $7.5 million for the Vermont Bank Infrastructure Sustainability Fund, providing a new funding source for community’s infrastructure needs.
  • $10 million for the Middle-Income Homeownership Development Program, helping address the financial gap needed to develop middle income housing, long support by the Vermont Chamber.
  • $2 million in base funding for the Manufactured Home Improvement and Repair (MHIR) Program, securing ongoing funding for an essential segment of Vermont’s housing stock.
  • Funding for Advance Vermont, a key workforce initiative focused on upskilling and education-to-career pathways.
  • Investment in the Vermont Professionals of Color Network, bolstering the organization’s workforce retention and recruitment efforts statewide.
  • 3% base increases for UVM, VSAC, and Vermont State Colleges, supporting the state’s talent pipeline and higher education system.
  • $650,000 in base funding to Sheriffs to restore vacancy savings, allowing transport deputy positions to be filled
  • $650,000 in base funding to the State’s Attorneys to restore vacancy savings

Unmet Needs

  • The Vermont Housing Incentive Program (VHIP) received $4.15 million in one-time funds, but its future remains uncertain as it wasn’t included in the base budget.
  • No additional funding was provided for relocation assistance through the Grants for Relocation Outreach Work Program, a program intended to support local, regional, county, and statewide organizations conducting new resident relocation, recruitment, and retention activities.

 Sustained, strategic investments remain critical to building a resilient economy. The Vermont Chamber will continue working to ensure that policies and investments promote long-term economic stability, business competitiveness, and bring Vermont towards a future of growth and abundance.

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Vermont Manufacturing Day Brings Business and Policy Leaders Together at the State House

Vermont Manufacturing Day Brings Business and Policy Leaders Together at the State House

Over 100 manufacturing industry leaders gathered at the State House on April 2 to engage with legislators and raise awareness of the collective contributions of this industry to the Vermont economy. Vermont Manufacturing Day, convened by the Vermont Chamber of Commerce, Associated Industries of Vermont, Regional Development Corporations of Vermont, and Vermont Manufacturing Extension Center, brought businesses together to increase awareness, build relationships, and tell the story of the industry.

The Vermont Manufacturing economy has a $3 billion annual economic impact (over 8% of the state’s GDP), supports 30,000 jobs, and represents 10.5% of Vermont’s workforce. Businesses, legislative leaders, and Administration officials collaborated for a day of advocacy to elevate the collective contributions of the manufacturing sector to Vermont. Advocacy day highlights included a joint hearing with the Senate Committee on Economic Development, Housing and General Affairs and House Committee on Commerce and Economic Development, a listening session with Speaker Jill Krowinski, a listening session with Lieutenant Governor John Rogers, and a joint resolution recognizing April 2, 2025 as Vermont Manufacturing Day.

Rep. Jonathan Cooper (Bennington-1), shared “In this resolution, we affirm the value and necessity of a thriving manufacturing sector in the Green Mountain State. Accounting for more than 10 percent of Vermont’s private sector jobs, and boasting an average wage well above the statewide figure, the manufacturing industry provides a variety of high-quality, skilled jobs that are the backbone of our state’s economy. This sector plays a key role in both economic stability and prosperity, particularly in our rural communities,” commented Rep. Cooper.

“What sets Vermont manufacturers apart is their commitment to collaboration and continuous improvement. They are agile, people-focused, and solutions-oriented. And that culture of excellence is essential to building a more competitive, more resilient Vermont economy,” said Amy Spear, President of the Vermont Chamber of Commerce. “Manufacturing Day is more than a celebration—it’s a vital opportunity to connect Vermont’s business leaders and legislators. It’s how we strengthen understanding, build partnerships, and advance policies that support a thriving manufacturing sector.”

At the press conference, Vermont Commerce Secretary Lindsay Kurrle shared, “Manufacturers produce goods, create high-quality and high-paying jobs, and contribute to the economic success of Vermont. From aerospace to semiconductors and injection molding to socks – our manufacturing landscape is varied and thriving. At the Agency of Commerce and Community Development, our Department of Economic Development team is invested in manufacturing. We are committed to recruiting new businesses to Vermont and supporting the ones that are already here.”

 “Manufacturers across Vermont face challenges including high energy costs, aging infrastructure, and a tight labor market. It’s important that we all work together to develop targeted programs that provide both immediate and long-term support to overcome these challenges,” said Alex Demoly, Vice President of the Greater Burlington Industrial Corp. “With continued industry support, we can help Vermont manufacturers modernize their facilities, improve their competitiveness, and expand their workforce development efforts.”

Business leaders highlighted the following sentiments in their testimonies: the role of manufacturing in helping to sustain a diverse economy that supports a range of other industries, the sector’s centrality in providing jobs and fostering innovation throughout the state, including in more rural communities, and the collective challenges facing businesses in the industry, including: workforce development and access to skilled labor, workforce housing accessibility and affordability, and rising costs.

“According to Deloitte, the U.S. is projected to have more than 2 million unfilled manufacturing jobs by 2030 nationwide. With Vermont’s aging population and a housing crisis, we are particularly vulnerable to being even further left behind,” said Diane Abruzzini. “There is momentum towards reshoring manufacturing back to the U.S. and Vermont has a real opportunity to be a part of that. To do so, we must address the structural challenges that make doing business here difficult, while building on the collaborative strengths that make Vermont a supportive place to grow.”

Additional business and policy leaders that testified were: Mike Rainville, Founder and Owner of Maple Landmark, Jim Tringe, Director of Plant Services at Cabot, Brian Kippen, President/CEO of KAD Models & Prototypes, Inc., Elizabeth Dunn, Director of Distribution and In-House Manufacturing at USA Brands, Alberto Aguilar, President and CEO at Carris Reels, and Meg Hammond, Executive Director of Generator.

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Halfway Point: Taking Stock of the Legislative Session and Vermont’s Affordability Challenges

Halfway Point: Taking Stock of the Legislative Session and Vermont’s Affordability Challenges

With crossover complete, the Vermont Chamber advocacy team provides a comprehensive status update on Vermont’s most pressing affordability issues—education and property taxes, housing, healthcare, and business cost and regulation. Early measures in education and property taxes show promise in easing financial pressures, while proposed reforms in housing and healthcare remain under review amid evolving priorities. Key issues are summarized below.

Education Finance and Delivery

Following an average property tax increase of 14% last year, Vermont’s education finance and delivery system has reached a critical inflection point. With a clear focus on progressivity, transparency, and local control, the Legislature is examining the Administration’s proposals, which aim to address nearly every aspect of the current education finance framework—from how property tax credits are calculated to new measures designed to reduce disparities among school districts. However, significant questions remain regarding the potential for cost containment and the methodologies that will be employed to achieve it.

  • Yield Bill Passes Ways and Means: Curbing Property Tax Hikes: The House Ways and Means Committee passed the yield bill (9-2-0), proposing a uniform change to both non-homestead and homestead property tax rates for the upcoming fiscal year. The bill uses the one-time $77.2 million general fund transfer proposed by the Administration to buy down the property tax rate to an average increase of 1.1% versus the 5.9% increase that would have been realized without the transfer.
  • Education Reform Gets More Time: Due to the complexity of education reform—covering proposed changes to district sizes, funding, governance of Centers for Technical Education (CTE), prekindergarten, and a potential shift to a foundation formula—lawmakers are expected to take additional time beyond the standard crossover deadline. These decisions will ultimately determine whether cost containment can be achieved this session.

Housing

The continued lack of affordable housing is making living in Vermont more challenging for workers and families. Thoughtful reforms—such as streamlining permitting, encouraging higher-density and mixed-use developments, and revising financing mechanisms—are needed to help stabilize prices, support community resilience, and increase housing output.

  • Housing-Focused Infrastructure Financing Gains Momentum: Public infrastructure remains a major barrier to housing development. A housing-focused version of the long-proposed project-based Tax Increment Financing (TIF) program has gained momentum in the Senate, alongside a bond bank program designed to extend and enhance water and sewer service capacity for housing in municipalities.
  • Middle Income Programs Get Policy Approval; Budget Approval Pending: Programs designed to bridge the financing gap for housing developers or homebuyers have received support in policy committees, although the final budget for these initiatives has yet to be determined.
  • Act 250 Appeals Study Expedited: The timeline for a study on Act 250 appeals was expedited to allow the Legislature to develop policy proposals in time for the next session.

Healthcare

Commercial healthcare premiums have increased by double digits over the past three years while healthcare providers continue to face staffing and funding challenges in delivering the access to care communities need; 45% of respondents to the Vermont Chamber’s Business Climate Survey have adjusted their benefits in response to rising costs—with smaller businesses feeling the impact the most.

  • Reference-Based Pricing: Reforms Under Consideration to Curb Costs: In efforts to control costs, the Senate is moving forward with a proposal to implement reference-based pricing (RBP) before phasing in global hospital budgets.
  • New Law Unmerges Markets, Double-Digit Premium Increases Likely: In a swift legislative move, Vermont’s Legislature permanently unmerged the individual and group healthcare markets—a measure signed into law by Governor Scott—to shield small businesses from the higher costs of the individual market. However, the path to addressing the underlying cost drivers remains unclear and another year of double-digit increases may be unavoidable.
  • Workforce and Demographic Challenges: Further Action Needed: While current programs remain essential, little progress has been made in developing solutions to address the growing staffing shortages and demographic shifts impacting the healthcare system. Additional proactive measures are needed to ensure long-term workforce sustainability and maintain access to quality care.

Vermont’s Business Climate

The Vermont Chamber’s Business Climate Survey revealed a stark reality: respondents consistently voiced frustration with Vermont’s business environment, citing rising operational costs, regulatory hurdles, and a lack of workforce availability. The Vermont Chamber’s focus remains aligned with what Vermonters expressed at the polls in November—addressing affordability, spurring economic growth, and tackling Vermont’s toughest challenges head-on. 

  • Military Retiree Pension Exemption Ignored: Despite strong bipartisan support in the House and Senate, legislation that would exempt the pensions of military retirees and survivor benefits from taxation has not been taken off the wall, leaving Vermont as the second least desirable state for military retirees.  Vermont’s veteran population is declining at a rate of 2.7% annually, compared to a national decrease of 1.6%.
  • Balanced Comprehensive Data Privacy Gains Traction: A Comprehensive data privacy bill has received unanimous committee approval as it moves through the Senate. While compliance with this law will carry costs, the bill aligns with data privacy standards in other New England states and avoids exposing businesses to costly legal fees by excluding a private right of action.
  • Electricity Rate Increases: Two Senate committees have advanced a bill that is raising serious concerns due to its potential to increase electric costs for ratepayers.
  • New Business Taxes and Fees Off the Table for Now: While new and increased taxes were front of mind last year, tax increases targeting Vermont businesses have been off the table thus far.

Looking Ahead: What’s Next for Affordability Policy?

As the Legislature moves into the second half of the session, many of these affordability proposals will face significant hurdles in securing final approval and funding, and things can change dramatically as bills move from one chamber to the other. Proposals that seemed settled in one committee may be completely rewritten or stalled as they face new scrutiny and ideology. Several efforts to deliver some form of affordability remain in play, but competing priorities and budget constraints will shape what ultimately moves forward. Adding to the uncertainty, federal funding fluctuations could impact healthcare, infrastructure, and workforce programs, forcing lawmakers to make difficult trade-offs. The Vermont Chamber will remain engaged at every step, ensuring that affordability remains at the forefront as these critical policies take shape.

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Lt. Governor John Rodgers Connects with Business Leaders at the Wellspring Forum

Lt. Governor John Rodgers Connects with Business Leaders at the Wellspring Forum

Lieutenant Governor John Rodgers connected with Vermont business leaders at the Vermont State House today for the latest installment of the Wellspring Forum series. Each event in the series brings together top business and policy leaders for a robust discussion on pressing economic issues and is moderated by Vermont Chamber President Amy Spear.

“Connecting businesses and policy leaders is a critical component of our mission to advance the Vermont economy. Vermont is at a critical juncture, and this week is particularly significant as it marks the crossover deadline,” stated Spear. “Lieutenant Governor Rodgers discussed key issues affecting Vermont’s affordability, emphasizing that we must come together to find solutions that lead us toward a prosperous and sustainable economic future—one that ensures living and doing business in Vermont remains viable.”
Lt. Governor Rodgers focused on the most urgent economic challenges facing Vermont, highlighting workforce shortages and affordability as top concerns. Business leaders stressed the need for targeted strategies to attract and retain workers and young families, underscoring the importance of keeping Vermont an attractive place to live, work, and do business.
“I believe Vermont’s strength lies in the spirit of our communities and the vitality of our local businesses,” said Lt. Governor Rodgers. “I remain dedicated to championing affordability and ensuring our economic policies pave the way for a secure future. When we set aside partisan differences and work together, we create a Vermont where every community and enterprise can thrive. Affordability isn’t just a policy goal—it should be a promise to Vermonters.”
The Wellspring Forum series is supported by NBT Bank. The event’s name draws inspiration from former Governor James H. Douglas, who once said: “I am often reminded that the wellspring of Vermont liberty flows from Main Street, not State Street.”

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Building Vermont’s Tomorrow: Tackling Affordability, Housing, and Economic Challenges

Building Vermont’s Tomorrow: Tackling Affordability, Housing, and Economic Challenges

As Town Meeting break concludes and the Legislature prepares to return to Montpelier next week, the stakes have never been higher. Vermont’s economic and legislative landscape is at a critical juncture, and this special edition of State to Main highlights the progress, challenges, and opportunities that lie ahead for our state’s economy. The Vermont Chamber’s focus remains aligned with what Vermonters expressed at the polls in November—addressing affordability, spurring economic growth, and tackling Vermont’s toughest challenges head-on. In a time when rising costs in critical areas like education finance, housing, and healthcare are straining families and businesses, our commitment to thoughtful, data-informed progress is more essential than ever. 

The Stakes: Navigating Demographic Realities 

Vermont’s unique character is our greatest asset, yet our demographic trends demand urgent attention. Since 2000, our population has remained relatively stagnant while shifting dramatically toward an older demographic. More than one-fifth of Vermonters are 65 or older, and over 35 percent are already past 54—the age when many exit the workforce. With the state recording the lowest fertility rate in the nation and retaining only about 43% of its college graduates, we have experienced negative net migration from 2010 to 2020. Our high dependency ratio further underscores the mounting burden on an increasingly dwindling economically active population. Compounding these challenges is Vermont’s fiscal environment—ranking as the third-highest state in the nation for tax collections per capita. With property and individual income taxes as our largest revenue sources, families and businesses are increasingly strained by limited housing options and rising costs. To reverse these trends, Vermont must add an average of 13,500 workers annually over the next 10 to 15 years. The Vermont Economic Action Plan sets a bold, necessary target: expand our population to 802,000 by 2035. This growth isn’t for its own sake; it is essential to revitalizing our communities, strengthening our tax base, and ensuring every Vermonter benefits from a vibrant economy. 

Housing: The Cornerstone of Prosperity 

Our housing market paints an equally urgent picture. Vermont once built housing at a brisk pace, but in recent decades, production has slowed dramatically. According to a statewide needs assessment, we require 36,000 new housing units by 2029—translating to about 7,200 new homes annually over the next five years—to adequately meet demand. Yet, last year, only 2,500 units were permitted, highlighting a critical shortfall. Without significant intervention, our housing shortage will continue to drive up prices, placing a severe financial burden on families and stifling community resilience. Addressing these barriers—by streamlining permitting processes, incentivizing higher-density and mixed-use developments, and revising financing mechanisms—is essential if we are to triple our housing output over the next decade. Relying on quick fixes will only mask the problem; real, sustainable change demands that we tackle outdated housing production models and systemic fiscal pressures at their core. 

A Call to Action: Embrace Abundance 

Vermont’s future is a choice between two distinct paths. One path leads to rising costs, diminished public services, and a stagnating economy—a future defined by scarcity. The alternative is a future of abundance, where strategic growth cultivates a thriving business climate, robust public services, and affordable living for all Vermonters. While quick fixes may seem appealing, they fall short of creating sustainable change. Real progress requires us to confront the root causes of our challenges—demographic shifts, outdated housing production models, and systemic fiscal pressures—through honest conversations, shared commitment, and a willingness to embrace compromise. Only by addressing these underlying issues can we create lasting solutions that secure Vermont’s economic future.  

Now, more than ever, our collective future depends on embracing a growth mindset—one that moves beyond partisan divides to unite us in pursuit of a more affordable and sustainable Vermont. The data is unequivocal: Vermonters overwhelmingly support policies that promote growth and opportunity. The road ahead may be challenging, but with bold action, informed strategy, and a unified vision, our future is abundant. Let’s work together to ensure that Vermont remains a place where businesses thrive, communities prosper, and every individual has the opportunity to succeed. 

Member-Driven, Data-Informed: Shaping Vermont’s Future

Our work is both member-driven and data-informed. Thoughtful, evidence-based policies are key to reducing costs, growing our economy, and creating opportunities for all Vermonters. The data visualizations below highlight critical trends—from housing shortages and demographic shifts to escalating healthcare costs—that underscore the challenges we face. At the Vermont Chamber of Commerce, we know that these issues do not rest on the shoulders of any one party, organization, or community alone. By collaborating and using data as our guide, we can advocate for solutions that make a real difference for every Vermonter.

 

 

 

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Op-Ed: Strength in Service: Unlocking Opportunity with Military Pension Benefits 

Strength in Service: Unlocking Opportunity with Military Pension Benefits

This Op-Ed is by Amy Spear, President of the Vermont Chamber of Commerce

Vermont stands at a pivotal moment in its economic and demographic evolution. As our state grapples with an aging population and an increasing need for a vibrant, skilled workforce, we must leverage every opportunity to build a stronger future. Military retirees represent one such opportunity—a group renowned not only for their exceptional skills and discipline, but also for their potential to invigorate local communities.

Historically, Vermont has been an outlier among states when it comes to taxing military pensions. While many neighboring states offer full exemptions, Vermont currently exempts only the first $10,000 of military retirement pay for residents whose incomes fall below modest thresholds. This limited exemption contradicts our goal of creating a welcoming environment. Compared to states like New Hampshire and Maine—both ranked among the top 10 for military retiree benefits—Vermont remains the worst state for our veterans, sending a discouraging message to those who have served our nation.

Data shows that military retirees are not only experienced professionals but also bring steady incomes and an unwavering commitment to community service. In fact, 70% of these individuals are between the ages of 35 and 50, often continuing to contribute to the workforce in civilian roles well after their military service ends. Their ongoing economic activity strengthens local economies and expands the tax base—benefits that far outweigh the estimated $4 million in foregone revenue from a full exemption.

The demographic stakes are high. Vermont’s veteran population is declining at a rate of 2.7% annually, compared to a national decrease of 1.6%. This trend is most pronounced among those aged 40 to 64, the very group poised to benefit from and contribute to a more inclusive pension exemption policy. By aligning our tax policies with those of our peers, we not only honor the service of military retirees but also position Vermont as a destination for a skilled, diverse, and dynamic workforce.

This policy change is a key element of the Vermont Economic Action Plan, which focuses on two main pillars: Expansion—growing our population and housing—and Efficiency—regulatory streamlining and fiscal responsibility. Integrating a full state income tax exemption for military retirees and their survivors into this framework will strengthen our communities, enhance our workforce, and advance the Vermont economy.

The Vermont Chamber of Commerce remains steadfast in its support for removing state taxation on military retirement pay and survivors benefits.  Creating a tax environment that respects and rewards service will not only attract military retirees but also contribute to a broader, more resilient economic landscape in Vermont.

Call to Action
As state lawmakers from across the political spectrum show growing support for this measure, we encourage all Vermonters to recognize the benefits of welcoming our military retirees. More people need Vermont, and Vermont needs more people—especially those who have served our country with honor and distinction.

Now is the time to act. We encourage Vermonters to reach out to their legislators—by calling, emailing, or meeting with them—and ask for S.17 and H.43 to be enacted this legislative session. Every voice matters in shaping a future where Vermont honors and supports those who have served our nation.

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