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

Sustained Investments Supporting Vermont’s Economy

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

One-Time Investments Supporting Vital Goals

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

Unmet Needs and Shifting Priorities

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

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