Modernizing Act 250 and Land Use Planning

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.

• 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.

• 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

• Paid Family Leave: The House General and Housing Committee took testimony on the roll out of the state’s voluntary Paid Family Medical Leave Insurance program and heard from paid leave advocates on their push to create an expansive state mandatory program, funded through a payroll tax.
• Economic Development: The House Commerce and Economic Development Committee continued work on S.327, adding additional meetings for the convention center task force and establishing a hospitality and culinary apprenticeship pilot. The Vermont Chamber is named as a stakeholder in the pilot, which could help support the state’s hospitality industry.
• Commercial Property Assessed Clean Energy: The Vermont Chamber testified in the House Commerce and Economic Development Committee on S.138, a bill that would expand Vermont’s PACE program and enable businesses to finance efficiency, renewable, and resilience improvements. The committee amended language to allow lenders to also administer the program, aiming to reduce barriers and improve adoption.
• Non-Compete: The House General and Housing Committee introduced non-compete regulation language to S.230, creating distinctions between exempt and nonexempt employee non-compete contracts. As discussions continue, additional testimony will be needed to ensure the proposal achieves its intent without creating broader unintended impacts.
• Tax Conformity: The Senate Finance committee advanced H.933 after a week-long review of the targeted updates the bill makes to Vermont’s tax code, including provisions to enhance the state’s research and development environment. The bill now moves to the Senate Appropriations Committee.
• Act 250: House Environment Committee continued in-depth review of S.325, considering amendments to repeal the road rule and Tier 3 category. These changes recognize the broken process in the roll out of Act 181, impacting rural landowners across Vermont.
• Yield Bill:
• The Senate Finance Committee advanced H.949, allocating additional funding for a larger buydown than advanced by the House and bringing the Senate far closer to the Governors recommendation, setting the average property tax increase to 3.8%. The amendment also reduces excess spending thresholds from 118% increases to 112%, and banks on education cost savings in future years to prevent large future rate hikes.
• Career Technical Education (CTE): The House Commerce and Economic Development Committee continued work on S.313, adding a study on streamlining educator requirements to improve access while maintaining instructional quality. As the bill moves closer to advancement, progress continues towards aligning workforce training with statewide industry needs.
• Education: The House advanced H.955 following a closely contested debate on the Floor, approving a bill that relies on voluntary alignment and mergers. With significant departure from the Governor’s proposal, this debate will continue.
• Alcohol: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.921, considering removal of the proposed 2028 sunset on small brewer self-distribution for amounts under 3,000 barrels.
• Vocational Rehabilitation: The House Commerce and Economic Development Committee reviewed a new draft of S.173, replacing proposed program changes with the creation of a working group to evaluate potential improvements to the vocational rehabilitation system. This approach maintains current program stability while laying groundwork for future efficiency and effectiveness enhancements.
• Polyfluoroalkyl Substances (PFAS): The House Agriculture Committee reviewed H.911, a bill that would prohibit pesticides and pesticide packaging containing PFAS. While specific language is still under development, potential for broader PFAS definitions could increase compliance costs for manufacturers whose processes may already be subject to regulation.
• Wetlands: The House Environment Committee reviewed a proposed amendment to S.223 focused on targeted wetlands permitting reform to support housing development in designated growth areas. While the amendment faces strong headwinds, continued streamlining of regulatory processes remains vital for housing growth and affordability.
• Building Energy Code: The Senate Natural Resources and Energy Committee began review of H.718, hearing concerns related to funding limitations, enforcement authority, and the need for expanded workforce training resources. Continued focus on supporting the building community will be necessary as discussions continue.
• Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.512, considering exemptions for noncommercial sellers and adding a potential sunset clause to ensure the bill is targeted, effective and can be reevaluated after implementation.
• Sister State: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.674, maintaining quarterly meetings of the sister state council, leveraging existing state relationships, and considering U.S. and state sanctions lists in the vetting process.
• Public Safety: The Senate advanced H.410, a bill that redefines recidivism to support more efficient judicial processes and quicker access to services. The bill now moves to the Governor’s Desk for consideration.

• Tax Conformity: The Senate Finance Committee reviewed H.933, a bill making several targeted changes to the state’s tax code. As this bill progresses, the creation of a competitive, predictive tax environment would be ideal for Vermont’s businesses.
• Commercial Property Assessed Clean Energy (C-PACE): The House Energy and Digital Infrastructure Committee advanced S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings. The bill’s language now moves to the House Commerce Committee for inclusion in S.327.
• Economic Development: The House Commerce and Economic Development Committee reviewed omnibus economic development bill S.327. The committee is considering an amendment that would increase accessibility to funding available through the Rural Industrial Development Program, to help rural business relocation and expansion.
• Vocational Rehabilitation: The House Commerce and Economic Development Committee continued review of S.173, a bill proposing modifications to Vermont’s vocations rehabilitation program Maintaining effective prescreening and improving the efficiency of rehabilitation plans must remain key priorities as discussions continue.
• Housing: The House General and Housing Committee revised S.328, taking language from House and Senate housing bills and beginning the process of merging the two bills. While the bill advances key housing initiatives, provisions related to multiunit development have been separated for further consideration in the House Environment Committee and still face additional challenges.
• Nickel For Your Thoughts: The House Commerce and Economic Development Committee continued testimony on H.837, a bill allowing businesses to voluntarily round cash transactions to the nearest five cents in response to reduced penny circulation. Final details around consumer notice are still being refined by the Committee.
• Franchise Agreements: The Senate advanced H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. The bill now moves to the Governor’s desk.
• Career Technical Education (CTE): The House Commerce and Economic Development Committee considered a new draft of CTE bill S.313 that would require acceptance of CTE credits toward graduation and begin updating the state’s CTE system. While not a complete solution to the challenges facing CTE centers, the proposal represents a strong improvement toward aligning workforce training with industry needs.
• Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued to review H.512. Ongoing discussions focused on refining the resale cap structure, addressing potential loopholes, and ensuring enforceability.
• Association Health Plans: The Senate Finance Committee continued testimony on H.585, which could allow Association Health Plans beginning in 2028 and expand coverage options for businesses facing high costs. Testimony has shown strong support for AHPs, while broader discussions continue to shape the debate.
• Primary Care: The House Health Care Committee reviewed S.197 which aims to increase use of primary care to reduce strain on hospital systems.
• Sister State: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.674, a bill establishing a formal process for creating additional Vermont Sister State relationships to strengthen international engagement. Discussion emphasized the importance of a centralized vetting process and prioritizing mutually beneficial partnerships.
• Wastewater: The House Environment Committee reviewed S.212, which streamlines wastewater permitting and improves coordination between municipal and state systems to reduce timelines and support development efficiency.
• Bottle Bill: The Senate Natural Resources Committee continued testimony on H.915, a bill that establishing an extended producer responsibility program that would significantly increase obligations for beverage container manufacturers, distributors, and retailers.

• Cash Transaction Rounding: The Vermont Chamber testified in the House Commerce and Economic Development Committee on H.837, a bill that would allow businesses to voluntarily round cash transactions to the nearest five cents with appropriate consumer notice recognizing the challenges that will inevitably arise with the phaseout of the penny.
• Extreme Temperatures: Following extensive testimony, the House General and Housing Committee paused discussion on the “extreme temperature” workplace proposal in S.230 to engage further with VOSHA. While temporarily slowed, the proposal is expected to resurface soon.
• Commercial Property Assessed Clean Energy (C-PACE): The Vermont Chamber testified in the House Energy and Digital Infrastructure Committee on S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings, allowing businesses to finance efficiency, renewable, and resilience improvements through long-term, fixed-rate property assessments.
• Housing: The House General and Housing Committee reviewed S.328, the Senate-passed housing bill. With overlap between S.328 and the House-passed H.775, the Committee now must consider which parts of each bill will result in the most efficient path towards housing growth.
• Association Health Plans: The Senate Finance Committee began testimony on H.585, which would allow Association Health Plans in 2028 contingent on federal changes and initiate a study on impacts to Qualified Health Plans. These plans could expand options for businesses facing high costs, with further evaluation underway.
• Act 250: The House Environment Committee began testimony on S.325, a bill that would make amendments to 2024’s Act 181 including moving interim exemptions to 2030, delaying the road rule until 2030, and delaying the implementation of tier 3 until July 2028.
• Reference Based Pricing: S.190, a bill continuing momentum toward health care cost containment efforts by increasing price transparency and moving the Green Mountain Care Board closer to implementation of reference-based pricing, has advanced to the House Health Care Committee.
• Budget: The Senate Appropriations Committee reviewed H.951, the House-passed FY27 budget totaling $9.3 billion. Following a divided House vote, the bill reflects a mix of targeted investments and ongoing funding gaps, underscoring the need for efficient, high-impact spending to support affordability and long-term economic stability..
• Primary Care: The House Health Care Committee reviewed S.197, a bill aimed at increasing the use of primary care to reduce strain on hospital systems. Discussions included spending targets, opportunities for regional collaboration to improve efficiency, and potential payment reform through alternative models to support long-term affordability.
• Health Care Affordability: The House Health Care Committee reviewed H.433, a bill that would move the state closer to a universal primary care system at the expense of an additional payroll or income tax, shifting, rather than reducing the cost of health care in Vermont.
• Alcohol: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.921, a bill expanding alcohol service options, including larger serving sizes, more flexible locations, shorter notice periods for tasting permits, and increased direct distribution opportunities. While the proposed changes could enhance industry competitiveness, the Committee raised concerns regarding implementation and potential market impacts.
• Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued review of H.512, legislation aimed at curbing excessive resale of event tickets and strengthening consumer protections for venues using online ticketing platforms. The Committee continues to evaluate whether a resale price cap is necessary and enforceable.

• Education: The House Education Committee advanced its education reform bill on a partisan vote of 7-4. The bill diverts from last year’s Act 73, instead taking voluntary approach that expands the use of Cooperative Educations Service Areas rather than reducing supervisory districts, and targets efficiencies by encouraging reduced duplicative services without mandating consolidation. The strategy ultimately relies on hope that voluntary alignment will deliver meaningful results.

• Property Taxes: The House advanced H.949 on a vote of 78-61-9, a bill that would use half of the state’s $104.9 one-time funds to uniformly buy down rate increases to an average property tax increase of 7 percent. The bill would also preemptively allocate the other half of the one-time money for the education fund for buy downs in future years. This falls short of the Governor’s proposal to use the full one-time funds this year, and legislators have yet to create the structural change needed to reign in education spending.
• Education Spending: The Senate advanced S.220, a bill that would redefine excess education spending and lower the excess education threshold from 118% to 112%, an approach intended to slow education cost growth and reduce the number of districts triggering the excess spending penalty. The bill now moves to the House Ways and Means Committee.
• Act 250: After lengthy and highly contentious floor debate, the Senate advanced S.325, a bill that would make amendments to 2024’s Act 181 including moving interim exemptions to 2030, delaying the road rule until 2030, and delaying the implementation of tier 3 until July 208 and given the land use review additional guidance to change the current trajectory of the underlying bills implementation. The bill now moves to the House.
• Housing Availability: The Senate advanced S.328, a bill that would expand the authority of the Vermont Economic Development Association to finance certain housing projects and study legal measures needed to require common interest communities to allow long term rentals, operation of family child care homes, and the building of accessory dwelling units on a homeowner’s property. The bill now moves to the House.
• Economic Development: The Senate advanced S.327, a bill that establishes two new task forces to pursue a new culinary institute and improve Vermont-New York economic relations, and that would repeal the VEGI sunset. The Vermont Chamber is named in both task forces remaining, and the bill now moves to the House Commerce and Economic Development Committee.
• Primary Care: The Senate advanced S.197, a bill aimed at increasing the use of primary care to reduce strain on hospital systems. This step toward long-term healthcare cost containment now moves to the House Health Care Committee.
• Vocational Rehabilitation: The House Commerce and Economic Development Committee continued review of S.173, a bill proposing modifications to Vermont’s vocations rehabilitation program and hearing testimony on the need for independent pre-screening processes. Continuing these processes, enacting more cost-effective and coordinated rehabilitation plans, and improving outcome tracking to ensure meaningful program improvements remains vital.
• Data Brokers: The House advanced H.211 a bill that attempts to tighten oversight of data brokers through new registration, reporting, and consumer protection requirements, but in doing so introduces a complex and expanding regulatory framework that has caused serious concern from industry leaders. The bill now moves to the Senate.
• International Trade: The House Commerce and Economic Development and Senate Economic Development, Housing, and General Affairs Committees welcomed representatives from Japan and Taiwan, reinforcing Vermont’s international economic partnerships. Strengthening global relationships remains key to building a diverse, resilient, and competitive state economy.
• Cannabis: The Senate advanced S.278, a bill that would establish cannabis event permits modeled after alcohol event permits, allow retailers to sell higher quantities, and repeal integrated license provisions. A floor amendment offered by the Senate Economic Development, Housing, and General Affairs committee added a provision allowing for future joining of interstate commercial cannabis compacts, providing an additional venue of sale for Vermont Cannabis retailers. The bill now moves to the House.
• Building Energy Code: The House advanced H.718, a bill that would create structural updates to Vermont’s residential building standards framework for residences with fewer than three dwelling units. The bill now moves to the Senate.
• Event Ticketing: The Senate Economic Development, Housing, and General Affairs Committee continued work on H.512, legislation aimed at curbing excessive resale of event tickets and strengthening consumer protections for venues using online ticketing platforms. The committee raised concerns about how price caps could impact safety and transparency in the resale market and will continue refining the bill to ensure it achieves its intended outcomes.
• Sister State: The Senate Economic Development, Housing, and General Affairs Committee reviewed H.674, a bill passed by that House that creates a process for establishing additional Vermont Sister States in order to strengthen Vermont’s international engagement. In its review, the committee focused on standardizing international relationships and dug into the bill’s stringent rules around spending.

• Career and Technical Education (CTE): The Senate Education Committee unanimously advanced S.313, a bill outlining legislative intent to establish governance models, expand access to CTE programs, align graduation credits, and integrate adult education. As the bill moves to the Senate floor, continued collaboration and attention to implementation details will be essential to turn these goals into practical outcomes.
• Act 250: The Senate Natural Resources committee unanimously advanced S.325, a bill that would make amendments to 2024’s Act 181 and allow more time to make technical corrections to the Act including moving interim exemptions to 2030, delaying the road rule until 2030, and delaying the implementation of tier 3 until July 2028. The bill now moves to the Senate Appropriations for further consideration.
• Event Ticketing: The House advanced H.512, a legislation aimed at curbing excessive resale of event tickets and strengthening consumer protections for venues using online ticketing platforms. The bill now moves to the Senate for further consideration.
• Sister State Program: The House Appropriations committee unanimously advanced H.674, a bill that would remove the repeal of the Ireland Trade Commission and establish a process for establishing additional Vermont Sister States, strengthening Vermont’s international engagement and to fostering mutually beneficial relationships with governments outside the United States. The bill now moves to the House Floor.
• School Budgets: The House Ways and Means Committee heard updated school budget statistics following Town Meeting week, showing that 36 of the 102 passed school budgets increased by more than 6 percent. Changes in federal funding, rising healthcare costs, and overall price increases continue to highlight the structural spending pressures facing Vermont’s education system.
• Relocating Revenue: The House Ways and Means Committee continues to weigh options to address funding shortfalls in both the Education and Transportation Funds. A proposal would shift a portion of the Vehicle Purchase and Use Tax to the Transportation Fund while moving part of the Sales and Use Tax to the Education Fund to maintain level funding during the transition, helping stabilize transportation revenue as broader education spending reforms remain necessary.
• Primary Care: The Senate Health and Welfare Committee unanimously advanced S.197, a bill aimed at increasing the use of primary care to reduce strain on hospital systems. This step toward long-term healthcare cost containment now moves to the Senate floor.
• Reference Based Pricing: The Senate Health and Welfare unanimously advanced S.190, a bill continuing momentum towards health care cost containment efforts by increasing price transparency and moving the Green Mountain Care Board closer to implementation of reference-based pricing. The bill now moves to the Senate Floor.
• Housing Solutions: The House Ways and Means committee advanced H.775, legislation aimed at promoting more efficient housing development and creating accountability for municipal housing targets. The bill now moves to the House Appropriations Committee for further consideration.
• Parental and Family Medical Leave: The House General and Housing committee reviewed but declined to advance H.459, which have would have prohibited the concurrent use of Workers Compensation and Parental and Family Medical Leave. By not advancing the bill before the crossover deadline, the committee preserved existing policies that support job protection timelines, return-to-work planning, and staffing predictability for employers.
• Water Connections: The Senate advanced S.212, a bill aimed at streamlining the wastewater connections permitting process and enhancing coordination of municipal and state-level permitting systems. This measure would help reduce timelines and increase the efficiency of new development projects and now moves to the House.
• Economic Development: The Senate Economic Development, Housing, and General Affairs committee unanimously advanced S.327, a bill that invests in further funds for the downtown center tax credit, business support services and studies, removes the VEGI sunset, and establishes task forces to study potential for a new culinary institute and an interstate highway alternative to Route 22A. The Vermont Chamber is named in both task forces, and the bill now moves to the Senate floor.
• Event Permitting: The Senate Economic Development, Housing, and General Affairs Committee unanimously advanced S.278, a bill that would establish cannabis event permits modeled after alcohol event permits, allow retailers to sell higher quantities, and repeal integrated license provisions. The bill now moves to the Senate Floor.
• Building Energy Code: The House Energy and Digital Infrastructure committee advanced on a 6-3 vote H.718, a bill that would create structural updates to Vermont’s residential building standards framework for residences with fewer than three dwelling units. The bill now moves to the House Appropriations Committee for further consideration.
• Commercial Property Assessed Clean Energy (C-PACE): The Senate Natural Resources and Energy committee unanimously advanced S.138, a bill that would expand Vermont’s PACE program to commercial and industrial buildings, allowing businesses to finance efficiency, renewable, and resilience improvements through long-term, fixed-rate property assessments. The bill now moves to the Senate Floor.
• Tax Classification: The House Ways and Means committee continued work on expanding property tax classifications from two to three categories. Final edits and a vote are expected by the end of next week.
• Education Misses the Mark: With the policy crossover deadline now past, House and Senate Education committees failed to advance meaningful education reform on the timeline established in Act 73 last year. Despite having nine legislative weeks to act following a taxpayer- funded summer task force, the committees will now seek special permission to continue work beyond the deadline as pressure mounts to address rising education costs and system reform.
• Education Spending: The Senate Finance Committee on a 5-2 vote advanced S.220. The bill would limit how much school districts can increase per-pupil education spending in FY2028 and FY2029 by establishing an allowable growth rate tied to prior year spending, an approach intended to slow education cost growth and reduce the number of districts triggering the excess spending penalty. The bill now moves to the Senate Floor.
• Housing Availability: The Senate Economic Development, Housing, and General Affairs committee on a unanimously advanced S.328, a bill that would fund important housing programs and study legal measures needed to require common interest communities to allow long term rentals, operation of family child care homes, and the building of accessory dwelling units on a homeowner’s property. The bill now moves to the Senate Floor.
• Noncompete: The House recommitted H.205, a bill broadly prohibiting non-compete agreements with limited exceptions, back to the House Commerce and Economic Development Committee. While the language could still reappear in other labor-related legislation later this session, the move represents a significant setback for the bill brought on by disparate treatment of business and educational settings.
• Franchises: The House Commerce and Economic Development Committee voted to unanimously advance H.733, a bill requiring businesses filing with the Secretary of State to indicate if the business is operating as a franchisee or franchisor. If voted out of committee, the bill will move to the House Floor.
• Healthcare: The House Health Care committee on a 8-3 vote advanced H.585. The bill retains the allowance of Association Health Plans in 2028 if Federal law changes but adds a study due in 2027 on potential impacts to the Qualified Health Plans. These plans could be an important option for businesses and entrepreneurs struggling with high costs and limited options. The bill now moves to the House Floor.
• Private Equity in Healthcare: The House Health Care committee is expected to vote later today on H.583, a bill regulating private equity in healthcare related private businesses. While the bill has improved since introduction, the Senate will need to consider the highly problematic provisions that persist relating to regulation and reporting requirements for privately owned businesses. The bill will move to the House Floor if advanced.

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

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