The 2026 Legislative Session is officially underway! Common Good Vermont will be at the State House advocating for our sector and monitoring legislation impacting nonprofits.
On Wednesday, Governor Scott made clear that education reform is a top priority for the Administration, focusing his entire State of the State Address on the matter. Despite the work of the school redistricting task force (established by the education reform law, Act 73) during the off-session being largely inconclusive, the Governor still expects the legislature to advance the framework laid out in Act 73 this year.
Between property taxes, federal funding uncertainty, and health care, just to name a few, this will be a difficult year for decision makers who face many challenges and competing needs without enough resources to go around.
In this Legislative Update:
- House Commerce Committee holds hearing on Common Good Vermont’s appropriation request to strengthen Vermont’s nonprofit sector
- Resources to stay engaged this legislative session
- Federal Updates from the National Council of Nonprofits
House Commerce Committee Hearing on Common Good Vermont’s Appropriation Request to Strengthen Vermont’s Nonprofit Sector
This year, Common Good Vermont is seeking both one-time and base funding for programs that will provide short- and long-term capacity building for Vermont nonprofits.
Our request:
- $295,665 in one-time funding to help nonprofits navigate federal cuts, executive orders, and policy shifts that affect service delivery. 75% of funds will be allocated to nonprofit technical assistance.
- $267,777 in base funding to improve nonprofit capacity, financial management, and compliance, strengthening the State’s own grantmaking and contracting systems.
What This Proposal Delivers
Federal Impact Response (one-time funding)
- Nonprofit Task Force: Six meetings over one year, including one hybrid session, producing two policy reports with recommendations for State leaders.
- Cross-Sector Convenings:Two statewide convenings with nonprofits, municipalities, RPCs, lawmakers, state agencies, and small businesses. A published report will outline shared risks and coordinated response strategies.
- Technical Assistance for 100 Nonprofits: Support for organizations facing federal disruptions, including strategic planning, Medicaid scenario planning, legal guidance on conflicting directives, and evaluation of collaboration, merger, or dissolution options.
Sector Capacity Building (base funding)
- Training and Resources: Targeted training on grants, compliance, and financial resilience.
- Improved State Partnerships: Collaboration with state agencies to streamline grant and contracting processes and reduce administrative burdens.
- Sector Data: Sector specific data on wages and benefits to benchmark and set nonprofit compensation, inform policy decisions, and monitor employment trends.
- Technical Assistance Fund: Support for nonprofits working through state contract requirements, financial management, reporting, or compliance concerns.
This request has already been endorsed by more than 60 nonprofits. Policymakers need to hear from nonprofit leaders to understand where risks are emerging, where consolidation may be necessary, and what supports can prevent service gaps. Unified support shows that nonprofits are prepared to work collaboratively and efficiently in this moment of change, and that public investment in our sector will have a lasting impact.
Join Us!
Sign on to support this request for public investment in our sector.
On Wednesday, 1/7, the House Commerce Committee took testimony on Common Good Vermont’s appropriation request, hearing from Common Good Vermont, as well as other nonprofit leaders:
- Emma Paradis, Common Good Vermont Co-Director, United Way of Northwest Vermont
- Jesse Bridges, Chief Executive Officer, United Way of Northwest Vermont
- Connor Daley, Riverland Strategies
- Sharon Lifschutz, Director of Development, Lund Center
- Liz Gamache, President & CEO, Lund Center
You can watch the hearing here and read Common Good’s written testimony here.
While it will be a challenging year to request new funding, we see this proposal as critical to supporting our sector’s resiliency now and going for the long-term, and look forward to continuing the conversation with House Commerce and other committees this session.
Please reach out [email protected] with any questions about this request.
How to Stay Informed & Engaged This Legislative Session
Information & News:
- Vermont Legislature Website – track bills, find your legislators, and watch committee meetings
- GoldenDomeVT.com – AI transcriptions of committee meetings (a work in progress, transcriptions are not perfect, but a helpful tool!)
- VTDigger – subscribe to Final Reading and other news updates and check out their Legislative Guide
- Vermont Public – subscribe to the weekly Capitol Recap
Connect with Common Good:
- Find Legislative Updates and other policy news here
- Common Good Vermont members are invited to join our Advocacy Roundtables – sign up here! Next meeting is 1/28, 2-3 pm.
- Save the Date! 3/25 is Nonprofit Legislative Day at the State House
- We will be adding more policy/advocacy events next month
Learn more about nonprofit advocacy:
Federal Updates from the National Council of Nonprofits
Zooming out, here is a brief overview of we can anticipate from Congress in the coming weeks:
Federal Funding
At this time, it seems Congress is on the path to avoiding another shutdown.
The current continuing resolution (CR) keeps the federal government open and funded through January 30. By then, Congress must enact full spending bills or another CR, or it risks a government shutdown.
Thankfully, congressional leaders have made progress in their bipartisan negotiations over the past few months. By next week, Congress is hoping to enact 3 more full-year spending bills (Commerce-Science-Justice; Energy-Water; Interior-Environment), if it can overcome some disagreements about earmarks. If that happens, Congress will have enacted 6 of the 12 spending bills that are needed.
In January, congressional leaders will work to see whether they can reach a bipartisan agreement on any of the remaining 6 spending bills. Their goal is to pass a legislative package by January 30 that would include another CR (it is unclear if it will be short-term, or if it will fund programs through the end of the fiscal year) and any of the 6 spending bills for which they are able to reach an agreement.
Democrats are signaling that they do not plan to shut down the federal government over an extension of the Affordable Care Act enhanced premium tax credits.
Healthcare Issues
The House is voting today on legislation to extend for 3 years the Affordable Care Act enhanced premium tax credits. The vote is being held because last month, four Republicans joined Democrats in backing a discharge petition on the legislation, forcing House leadership to bring the bill to the floor for a vote. The bill is expected to pass the House, but it is not expected to advance in the Senate. Supporters hope the bill will put more pressure on Senate leaders to reach a bipartisan compromise on the healthcare tax credits. There’s a short window to get something done, and it will be very challenging to find a solution that can garner enough support.
The debate over extending the healthcare tax credits has led some Republicans, including President Trump, to call for enacting another tax reconciliation bill this year to address healthcare and affordability issues. As you recall, Congress can enact a tax reconciliation bill with a simple majority in the Senate, rather than the typical 60 votes, but reconciliation is a cumbersome, daunting process. NCN will monitor for any threats/opportunities if momentum for a reconciliation bill continues.
SNAP
As you know, H.R. 1, the major tax package enacted by Congress this past summer, included several provisions to cut funding for the Supplemental Nutrition Assistance Program (SNAP). One provision requires states to reduce SNAP payment error rates, or risk losing partial federal SNAP funding. The National Governors Association, National Association of Counties, National Conference of State Legislatures, and the American Public Human Services Association, which represent SNAP administrators, are urging Congress to give states more time to bring their error rates down. We hear there’s some effort to add an extension to any funding package Congress advances this month. Without an extension, states may lose significant funding for SNAP in the coming years, putting increased pressure on state budgets.