Legislative Update: 1/29/26

Closing in on the first month of the legislative session, things are just starting to heat up.

Last week, Governor Phil Scott delivered his budget address to lawmakers, proposing a $9.4 billion budget. Based in the context of potential federal cuts, no more pandemic relief funds, and an affordability crisis, there is an emphasis on containing costs and limiting new initiatives. The budget highlights are focused on education transformation, housing and community revitalization, assisting vulnerable populations and public safety efforts, and good government. Notably, it directs $30 million of the funding set aside by lawmakers last year to respond to federal cuts to be used for property tax relief, leaving just $70 million available to fill gaps.

Common Good has been busy behind the scenes, working to advance our appropriation request to strengthen Vermont’s nonprofit sector. You can view all the organizations who have already endorsed it HERE, and join us:

Sign on in support!

We also testified in House Health Care this week on a bill that would expand access to Association Health Plans, potentially opening up the door to health insurance cost savings for nonprofits. Read more below!

In this update:

Common Good Testifies in House Health Care on Association Health Plans

On Wednesday, Common Good Vermont testified in House Health Care on H. 585, An act relating to health insurance reforms. This bill includes many proposals that would dramatically change health insurance in Vermont with implications for the marketplace, but our focus was on the section regarding Expanding Access to Association Health Plans.

Association Health Plans (AHPs) enable members of an association to purchase benefits as a large group. Banding together for greater buying power potentially opens up access to lower and more predictable premiums, comparable to what a large corporation is able to access.

While the impact on the broader marketplace must be considered, and it is important that benefits offered through AHPs are on par essential benefits, we are cautiously optimistic that AHPs could offer real relief to nonprofits and their employees.

You can read Common Good Vermont’s testimony HERE and watch testimony from the full lineup of witnesses (including the bill walk-thru which is helpful to understand more about association plans) HERE (see all 1-28 recordings, CGVT testimony is here).

Please reach out to [email protected] with any questions or feedback. If you would like to provide input directly to the committee, you can find their contact information by clicking the names of the committee members the committee page – we’re also happy to support.

A new plan to address homelessness?

By Rachel Farhi, Common Good Vermont Policy Intern

H. 594, An act relating to establishing the Temporary Emergency Housing and Accountability Program and the Return Home Program in fiscal years 2027 and 2028, aims to create a path for the more than 3,000 individuals experiencing homelessness to obtain permanent housing. The bill was formed after bill H. 91, Vermont Homeless Emergency Assistance and Responsive Transition to Housing Program was vetoed by Governor Phil Scott in June 2025.

The bill seeks to: 

  • Ensure that temporary emergency housing is available to the most vulnerable Vermonters.
  • Move away from the motel hotel voucher program towards a permanent solution with the Temporary Emergency Housing and Accountability by making hotels and motels have 400 rooms available.
  • Create a tiered continuum of care system 
  • Diversify emergency housing systems 
  • Implement the Return Home Program Providing to provide services to people who are not from Vermont experiencing homelessness to be moved back to their home state or families

This week, the House Human Services Committee continued to take testimony on the bill, hearing from nonprofits, state agencies, and persons with lived experiences. A few nonprofit perspectives are highlighted below:

Vermont Community Action Partnership cited problems with how the state will transition from the hotel motel hotel voucher program, and a tiered continuum of care. The funding for emergency housing would also not support expanding emergency housing models. For this problem the Vermont Community Action Partnership proposed that the Local Housing Coalition or Community Action Agency should be funded and placed to lead the initiative. The lack of affordable housing would make maintaining permanent housing difficult, with supportive services not being able to provide adequate aid, especially for rural areas.

They also raised concerns about language in the bill states that temporary emergency housing is “available to only the most vulnerable Vermonters in crisis.” They point out that this wording of “most vulnerable” excludes other people who are in crisis but do not see themselves as most vulnerable and that people who are not in the most dire circumstances still deserve help.  

Vermont Community Action Partnership does agree with some strategies in bill H. 594 but does not believe that these actions alone can end homelessness in the state.

The Housing and Homeless Alliance of Vermont also voiced concerns. The organization believes that there is not adequate shelter to decrease reliance on the hotel motel voucher program. The organization believes that the continuum of care for homeless people would be harmed through the new bill. The goal of the continuum of care is to meet the needs of those experiencing homelessness and is aimed at preventing a return to homelessness through a partnership with state agencies and providers. However, bill H. 594 does not account for the lack of funding that the increased reliance on the organizations would need or the increased housing problems in Vermont. The need for more housing in general, especially affordable housing, is necessary to combat the homeless problem across the state, which the bill does not concern.

The Homeless Prevention Center finds the requirement of case management to be problematic as case management is important and helpful but having it be a requirement could make the process less effective. 

While most of the organizations providing testimony had concerns with the approach laid out in H. 594, they are open to discussions on how to proceed. There also seems to be some agreement that reliance on the motel hotel voucher program should be reduced, and permanent housing is the solution. The House Committee on Human Services is continuing to hear testimony on bill H. 594 this week.

Other Bills of Interest:

Possible Partial Government Shutdown

From the National Council of Nonprofits:

The risk of a partial government shutdown is increasing as we approach the January 30 deadline. Congress must either enact another Continuing Resolution (CR), or full spending bills, or it risks a partial government shutdown that would impact 75% of the federal discretionary budget. NCN issued a statement focused on the challenges nonprofits would face in another prolonged government shutdown.

At 11:30am Eastern, the Senate will begin procedural votes on a six-bill funding package, and several factors could affect whether the shutdown is averted. Senate Democrats oppose the legislative package that includes funding for the U.S. Department of Homeland Security (DHS) following the killings of several people by federal agents in Minnesota. It is possible for the DHS funding to get pulled out of the funding package, and pass the remaining five bills, or pass a CR to have more time for negotiations once the House returns from its recess on Monday, February 2.

Note: The Supplemental Nutrition Assistance Program (SNAP) would not be impacted by a federal government shutdown because USDA is now fully funded through September 30.

NCN Resources for a Federal Government Shutdown