Housing, Wetlands, and Vermont’s Policy Disconnect

Housing, Wetlands, and Vermont's Policy Disconnect

The Legislative Committee on Administrative Rules (LCAR) voted 5–3 along party lines this week to object to the Administration’s proposed updates to Vermont’s Wetlands Rules, preventing the rule from moving forward and halting an effort to create more flexibility for housing development within designated growth areas.

The Vermont Chamber supported the proposed rule changes because they represented a practical step toward aligning Vermont’s permitting system with the state’s urgent housing and workforce needs, while continuing to support the State’s environmental stewardship. The proposal would not have eliminated wetland protections or opened mapped wetlands to development. Instead, it would have allowed density of housing development in designated growth areas, where communities have already planned for compact growth and existing infrastructure by reducing the required buffer areas from 50 feet to 25 feet.

The scale of the proposal matters. Designated downtowns, village centers, neighborhood development areas, and growth centers represent about 3% of Vermont’s land area, and the area affected by the proposed changes was estimated at approximately 0.2% of the state’s total land area. During the consideration process, the Vermont Chamber emphasized that this limited scope would reduce duplicative regulation, shorten permitting timelines, and support density in housing production in places already identified for growth.

For businesses, this is not an abstract permitting dispute. When housing projects face added uncertainty and delays, the result is fewer homes for workers, higher development costs, and greater difficulty recruiting and retaining employees. Vermont’s housing shortage increasingly affects nearly every major policy challenge facing the state, from workforce availability and affordability to long-term economic competitiveness.

Supporting compact housing growth also strengthens Vermont’s broader fiscal and environmental goals. Expanding housing supply grows the tax base, increases economic activity, and creates greater long-term capacity for the state to reinvest in environmental protection, infrastructure, and resilience efforts. Housing growth and environmental stewardship should be mutually reinforcing and not treated as competing priorities.

Wetland function, flood resilience, and environmental protection all deserve serious consideration in debates about regulatory reform, but Vermont also needs to distinguish between broad environmental deregulation and narrowly tailored modernization in growth areas. Rejecting limited reforms risks reinforcing permitting systems that make it harder to achieve the very housing, climate, and economic goals policymakers regularly say they support.

The Vermont Chamber will continue to advocate for permitting reforms that balance the protection of critical natural resources with sensible development at the very list in the limited areas identified for growth. Meeting the state’s housing, climate, and economic goals will require more than funding programs; it will require regulatory systems that make well-planned development feasible.

CONNECT WITH OUR HOUSING AND LAND USE EXPERT

Megan Sullivan

Vice President of Government Affairs

Economic Development, Fiscal Policy, Healthcare, Housing, Land Use/Permitting, Technology

RECENT NEWS

2026 Vermont Inspiration Guide is Now Available, Celebrating Local Businesses and Unexpected Experiences

The 2026 Vermont Inspiration Guide is Now Available, Celebrating Local Businesses and Unexpected Experiences

The Vermont Chamber of Commerce and the Vermont Department of Tourism and Marketing (VDTM) have announced the release of the annual Vermont Inspiration Guide, the state’s official travel publication. The Vermont Chamber produces the Inspiration Guide in partnership with VDTM each year. Print copies of the 2026/27 edition are now in distribution, reaching travelers across Vermont’s core drive markets and beyond to amplify Vermont businesses and inspire travel. Vermont’s visitor economy generates $4.2 billion in annual economic impact and employs 9% of the Vermont workforce.

The free Inspiration Guide is distributed throughout Vermont at Welcome and Information Centers, Burlington International Airport, Lake Champlain Ferries, lodging properties and tourism destinations statewide. It is also placed at premium retail outlets, travel hubs and airports across New England and New York as well as consumer shows and events throughout the United States and Canada. It is available through direct mail requests worldwide and in 2025 was mailed to travelers in all 50 states, Washington, D.C., Puerto Rico, and more than 40 countries.

The guide is part of the Vermont Chamber of Commerce’s Tourism Marketing Program, which leverages dynamic print and digital products to promote businesses to the 80 million people within a day’s drive of Vermont. The suite of products and services are the official fulfillment pieces for the state.

Vermont’s local communities, businesses and attractions create the fabric that makes up the Vermont brand. The editorial mission of the Inspiration Guide is to tell the story of Vermont through compelling, authentic content that inspires visitors. The Inspiration Guide amplifies business stories and the Vermont brand experience to the destination marketplace.

In addition to articles celebrating each of Vermont’s 14 regions, the 2026 edition marks the 250th anniversary of American independence, commemorating the people, places and events of that era at museums, town historical societies and other cultural institutions.

The “Unexpected Experiences” feature article shines a spotlight on the hidden gems that define Vermont’s depth as a travel destination across the Green Mountain State.

Individuals, businesses and organizations can obtain free print copies of the 2026/27 Vermont Inspiration Guide by visiting https://vermontvacation.com/request-information/.

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Jeff Wise

Senior Director of Programming

RECENT NEWS

Vermont Military Families Benefit from Diaper Drive at State House

Vermont Military Families Benefit from Diaper Drive at State House

On Thursday, May 14, lawmakers and citizens came together in the State House lobby to support the families of deployed Vermont National Guard members. Donations of over 2,600 diapers, thousands of wipes, and over $450 in individual monetary donations were collected throughout the day. Generous donations of $1,000 from Veterans Guardian, $1,000 from Veteran Benefits Guide, and $500 from American Legion, also contributed to the effort to support the households with infants and toddlers of affected Vermont Guard families.

Running through the Vermont Family Readiness Program with support of the Vermont Chamber of Commerce and in coordination with the Vermont National Guard and Veteran Affairs Caucus, the event was focused on supporting families in Vermont communities who are navigating the challenges of deployment.

During deployment, families often face both financial and logistical pressures. Some service members experience a reduction in income during deployment compared to their civilian roles. At the same time, spouses at home may need to scale back or step away from work to manage childcare and household responsibilities independently. Diapers and wipes are amongst ongoing expenses that place added strain on family budgets, particularly during periods of transition and uncertainty.

The donations will be distributed directly by the Family Readiness Team to Vermont military families, ensuring that support reaches those who need it most in a timely and practical way.

Megan Sullivan

Vice President of Government Affairs

Economic Development, Fiscal Policy, Healthcare, Housing, Land Use/Permitting, Technology

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

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

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

H.933: Miscellaneous Tax Bill

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

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

H.949: Yield Bill

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

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

H.951: State Budget

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

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

S.325: Amendments to Act 181

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

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

H.955: Education Transformation

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

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

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

CONNECT WITH OUR GOVERNMENT AFFAIRS TEAM

Megan Sullivan

Vice President of Government Affairs

Economic Development, Fiscal Policy, Healthcare, Housing, Land Use/Permitting, Technology

RECENT NEWS

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

Issue Updates from the State House

Week of May 11, 2026

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

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

CONNECT WITH OUR TEAM

Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

RECENT NEWS

Vermont Inclusion Week Proclamation

Vermont Inclusion Week Proclamation

Governor Phil Scott’s proclamation designating May 10–16, 2026 as Inclusion Week in Vermont affirms that the state “embraces people from all backgrounds – welcoming individuals and families with a wide array of skills, traditions, and perspectives to live, work, and build their futures here.”

The Vermont Declaration of Inclusion Initiative, which now encompasses 165 cities and towns, representing over 80% of the state’s population, welcomes the Governor’s continued support in promoting belonging and encouraging newcomers to establish roots in Vermont.

“This is the sixth consecutive year that the Governor has proclaimed the second week of May as Inclusion Week,” said Bob Harnish, co-founder of the Initiative. “The Governor’s leadership, alongside the local efforts happening statewide, is especially courageous given today’s challenges.”

Here are some examples of how towns and cities are promoting inclusion and belonging throughout Vermont:

• Glover, Orleans County (population 1,114): The Glover Equity Group advises the town on equity issues and organizes community events aimed at making Glover welcoming, inclusive, and equitable for all. Their initiatives began with welcome baskets for newcomers and “All Are Welcome” signs throughout town. Recently, the group received a Vermont Humanities grant to host a Juneteenth celebration. Chair Jethro Hayman shared, “We are partnering with the Highland Center for the Arts, Lake Region High School, and the Old Stone House Museum to present the Songs of Slavery and Emancipation tour, focusing on Vermont sites connected to the Underground Railroad and African-American culture.”

• Bristol, Addison County (population 3,782): The Selectboard established the Bristol Equity Committee to carry out the town’s Declaration of Inclusion. This committee advises on equity, recommends actions, and supports residents and businesses in creating a welcoming environment. Bristol also published a Driving Equity Toolkit to help town department heads and committees integrate inclusion into their everyday decision-making.

• Hartford, Windsor County (population 10,686): Hartford’s Committee on Racial Equity and Inclusion works alongside the local school district on an Equity and Inclusion Strategic Plan aimed at embedding inclusive practices and eliminating race-based disparities. Town Manager John Haverstock notes that Hartford has passed a “Welcoming Hartford” ordinance which articulates guidelines regarding the communications and enforcement relationship between the Town and the federal government on immigration, establishes town procedures concerning immigration status and enforcement of federal civil immigration laws, implements an Inclusion and Accessibility Plan for the Parks & Recreation Department, and ensures its town website and town hall comply with accessibility standards.

In Vermont’s most populous and diverse region, Chittenden County, there are numerous inclusion initiatives underway:
• Burlington: Voters approved a charter amendment on Town Meeting Day 2026 making the Racial
Equity, Inclusion, and Belonging (REIB) office a permanent fixture in city government. This change, pending approval by the state legislature and governor, will provide long-term stability for the office.
• Winooski: The city’s Advisory Commission for Inclusion and Belonging has been part of its city
charter since 2022. The city and the Winooski School District are conducting equity audits to highlight inequities and adopt focused policies and practices to address shortcomings. In addition, the mayor has requested that the city’s Declaration of Inclusion be readopted annually.

“Cities and towns across the state are doing so many exciting things,” said Barbara Noyes Pulling, of the Vermont Declaration of Inclusion Initiative, an all-volunteer organization. “Sharing these ideas and helping others build on them is one of our fundamental goals.”

For more information about the Vermont Declaration of Inclusion, visit vtdeclarationofinclusion.org which is generously maintained by the Vermont Chamber of Commerce.

The Vermont Declaration of Inclusion Initiative is also supported by the Vermont League of Cities and Towns and the Vermont Council on Rural Development.

Contact: Barbara Noyes Pulling, Vermont Declaration of Inclusion, barbaranoyespulling@gmail.com.

Data Privacy: Movement, But Major Decisions Ahead

Data Privacy: Movement, But Major Decisions Ahead

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

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

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

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

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

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

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

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

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

CONNECT WITH OUR DATA PRIVACY EXPERT

Megan Sullivan

Vice President of Government Affairs

Economic Development, Fiscal Policy, Healthcare, Housing, Land Use/Permitting, Technology

BEYOND THE RHETORIC

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

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

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

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

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

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

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

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

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

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

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

CONNECT WITH OUR EDUCATION EXPERT

Jeremy Little

Policy and Outreach Associate

Environment and Energy, Healthcare, Manufacturing, Transportation

RECENT NEWS

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

Issue Updates from the State House

Week of May 4, 2026

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

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

CONNECT WITH OUR TEAM

Megan Sullivan

she/her

Vice President of Government Affairs

802-522-6316

RECENT NEWS

Strong Privacy, Workable Policy: The Real Debate Around Vermont’s Data Privacy Bill

Strong Privacy, Workable Policy: The Real Debate Around Vermont’s Data Privacy Bill

Vermont Can Protect Privacy Without Hurting Vermont Businesses

The Vermont Chamber of Commerce supports meaningful consumer data privacy protections. Vermonters deserve more control over their personal information, and businesses benefit when consumers trust how their data is handled.

The question before lawmakers is not whether Vermont should protect consumer privacy. It should.

The question is whether Vermont adopts a strong, workable privacy law that aligns with other New England states, or whether it moves forward with first-in-the-nation provisions that have not been tested anywhere else.

What the Senate-Passed Bill Does

S.71, as passed by the Senate, gives Vermonters major new privacy rights. Under the bill, consumers would have the right to:

  • Know if a business is collecting their personal data
  • Correct inaccurate personal information
  • Ask for their personal data to be deleted
  • Get a copy of the data a business has collected about them
  • Opt out of targeted advertising, the sale of personal data, and certain profiling activities

The Senate-passed bill also requires businesses to follow security practices that protect the confidentiality, integrity, and accessibility of personal data.

Why This Matters for Vermont

Vermont businesses are not asking for no privacy law. They are asking for a law that protects consumers while also being clear, fair, and possible to follow.

Many Vermont businesses use basic digital tools to reach customers, sell products, promote events, process transactions, recruit workers, and compete in a modern economy. These are not abstract “Big Tech” companies. They are local employers, nonprofits, retailers, manufacturers, tourism businesses, service providers, and community organizations.

Concerns With the House Draft

The House proposal includes new provisions that go far beyond privacy laws in nearby states like Connecticut, Rhode Island, and New Hampshire.

These changes could:

  • Pull small businesses and nonprofits into complex regulations
  • Remove opportunities for businesses to fix mistakes before facing penalties
  • Create unclear legal standards that have not been tested in any other state
  • Restrict common digital tools local businesses use to communicate with customers
  • Increase legal risk and compliance costs for Vermont organizations

Strong privacy protections and workable rules are not mutually exclusive. Vermont can do both.

Vermont Businesses Are Speaking for Themselves

More than 100 Vermont businesses and organizations signed a letter urging the House to advance S.71 as passed by the Senate and reject novel, untested provisions.

These are Vermont employers and organizations raising real implementation concerns. They deserve to be heard in the legislative process.

The Bottom Line

This is not a choice between privacy and no privacy.

S.71 as passed by the Senate provides meaningful consumer protections, regional consistency, and a clear path for compliance.

The Vermont Chamber urges lawmakers to support the Senate-passed version of S.71 and reject novel provisions that could create unintended consequences for Vermont businesses, nonprofits, and communities.