Legislative Update 2/13/26

We are just a month away from the crossover deadline (when bills need to be voted out of their committee of origin to make it to the other chamber) in the second half of the biennium. This is an important time as anything left on committee walls after that point is unlikely to move forward and will need to be reintroduced next biennium to be considered by new and returning members following the November election.

At this critical juncture, it is even more important that we use our collective voices to inform policy makers of the issues impacting the vital work of nonprofits and our communities. Common Good is offering many events throughout February and March to support nonprofit advocacy:

  • On Wednesday, Common Good partnered with the Vermont Attorney General’s Office, the Vermont Human Rights Commission, and the ACLU of Vermont to offer a webinar on Federal Policy Changes & the Law. This panel of experts discussed the powers of the three branches of government, legal challenges to federal actions, enforceability of federal policies, and how federal actions intersect with Vermont law. They also offered recommendations for taking action, including communicating problems with organizations like those hosting this webinar, becoming a member of advocacy organizations, commenting on proposed rules, contacting legislators, and using your first amendment to free speech. Watch the recording here!
  • Monday 2/16: Advocating for Vermont’s Common Good in Unprecedented Times: Preparing for Nonprofit Legislative Day 2026 and Beyond
  • Wednesday 3/25: 2026 Nonprofit Legislative Day

Read on for:

Updates on State Grants

On Friday 2/6, the House Government Operations Committee had Common Good Vermont, the Agency of Administration, and the Regional Planning Commissions in to provide an update on the work the State and external partners did this year around improving state grants. All parties expressed appreciation and optimism about the outcomes of the three meetings held over the past 6 months.

While we are still waiting to review the Bulletin 5 updates that will put many of the discussed changes into action, we are encouraged by the progress made, including the creation of a working group (which includes nonprofit members) to keep the conversation going and develop new trainings and resources. We will share more information about the changes when a draft of Bulletin 5 is available. We are hopeful that we will be able to engage in a similar process to facilitate improvements to contracts and Bulletin 3.5. Common Good also spoke to our appropriation request as a way to support this ongoing work and nonprofits with state funding.

Expanded Protection for Volunteers – S. 151

On Tuesday 2/10, the Senate Judiciary Committee picked up S. 151, An act relating to special motions to strike in an action arising from unpaid volunteer work for a nonprofit organization or governmental entity.

This bill seeks to discourage meritless (or nuisance) lawsuits against nonprofit and government volunteers by providing an expediated process to have the suit dismissed. Modeled after Vermont’s anti-SLAPP (strategic lawsuit against public participation) law, volunteers may file a “motion to strike” if facing an action arising from their uncompensated volunteer work. This bill would not reduce liability or accountability – the motion to strike can be denied in certain cases – it simply creates an off-ramp to avoid litigation and the associated time, costs, and personal damages.

Common Good supports this legislation as it encourages and reduces barriers to volunteerism, and testified briefly on the matter on Tuesday. While it’s not clear how common it is for volunteers to be impacted by meritless lawsuits, this bill provides those donating their time and expertise with additional assurance and reduced risk.

The committee also heard from Benjamin Brickner, an attorney in Pomfret who worked with Senator Clarkson to bring this bill forward. He has witnessed in his community how litigation and threats of litigation have discouraged individuals from volunteering their time.

  • You can read his testimony, and supporting public comments, here.
  • Watch the hearing here.
  • You can also read a writeup from VTDigger’s Final Reading here.

The committee expressed interest in continuing their work on this bill next week. If this is an issue that has impacted you or your organization, we want to know about it! Please reach out to [email protected].

Health Care Reform

3Squares Awareness Day

By Rachel Farhi, Common Good Vermont Policy Intern

3SquaresVT, which is also known as SNAP, is a monthly assistance program that provides a larger grocery budget for those in need, especially children, older adults or those with disabilities who are struggling to make ends meet. 3SquaresVT is a lifeline for many households around the nation and state with 10% of Vermonters receiving benefits, and $12 million in federal benefits are distributed directly to those who receive benefits, which is put back into Vermont’s economy. The delays in SNAP during the government shutdown and changes made in HR1 impacting benefits, eligibility and administration make the figure of the program uncertain. 

On 2/5, 3SquaresVT Awareness Day, the Government Operations Committee took testimony from the Vermont Foodbank and others. 

John Sayles, who is the CEO of Vermont Foodbank, headed the discussion. He thanked the Legislature, the Emergency Board, and the Governor for their action during the government shutdown, allocating $250,000 in funding that allowed 64 thousand people to be helped through Vermont Foodbank and its partners who were able to purchase and distribute food. 

Sayles is now requesting support for Vermont’s Foodbank’s FY27 request for $5 million dollars, including $1 million for Ready Response to deal with disasters and emergencies, $2 million for Vermonters Feeding Vermonters, and $2 million to support the network of partners. In addition, he is urging the committee to support NOFA-VT’s request for $500,000 for ongoing funding in order to Strengthen Vermont Farm Viability and Address Food Security by sustaining programs that are known to work: Crop Cash and Farm Share, as well as to fully fund the administrative costs needed to counter federal funding changes and allow 3SquaresVT to remain accessible to people in Vermont.

Other witnesses were Stella James, Director, Hardwick Area Food Pantry, and Denise Walton, Community Member, who supported these requests.

Coerced Debt

By Rachel Farhi, Common Good Vermont Policy Intern

Bill H. 385, an act relating to remedies and protections for victims of coerced debt, aims to support survivors of economic abuse by providing meaningful protections. The House Committee on Commerce and Economic Development is continuing to hear testimony and draft bill H. 385. The Vermont Network Against Domestic & Sexual Violence and others testified previously, and shared this letter of support from nonprofit organizations. 

Bill H.385 would take effect on July 1, 2026. 

Key Provisions Include: 

  • Creates a way for victims to dispute coerced debt by providing adequate documentation, which may include a statement from a qualified third-party professional that verifies an instance of coerced debt
  • Ensures that attempts to collect coerced debt will stop, as well as the threat of a lawsuit to collect the coerced debt
  • The Attorney General shall amend Vermont’s Consumer Protection Rule 104 on Debt Collect to ensure that debt collection practices are in line with the requirements by January 1, 2027 
  • In the current draft, the definition of debtor (victim of coerced debt) is limited to survivors of domestic abuse, human trafficking, or vulnerable adults subject to abuse, neglect, or exploitation

Testimony heard last week included: 

  • The Association of Vermont Credit Unions supports the bill’s aims to protect victims and create a path to reclaim financial independence. However, there may be unintended issues  with the bill. The bill has “the potential for exploitation by fraudsters and subjects all losses, through no fault of their own, on Vermont financial institutions including legal remedies and sanctions” which would lead to burdens and expenses on Vermont credit unions. The variety of documents required for victims to get aid allows for the potential for exploitation and fraud. The Credit Union recommends adding a safe harbor provision to provide language to preserve existing creditor programs, which is a tested fraud-resolution practice. As well as, to have limitations on retroactive application, to restrict the bill’s applications for debts following the effective date, ensuring that there are no interruptions in already existing obligations. 
  • The Receivables Management Association International does not support bill H. 385 but will support if it is amended. The organization is committed to the integrity of consumer credit so they want to protect victims of economic abuse. However the association does not agree with the provision that inadvertently removes protections of victims. Bill H. 385 makes cases of alleged identity theft have the same requirements as coerced debt. The association believes that “victims of identity theft should not be required to produce the same information as victims of coerced debt.” The association wants an amendment to prevent identity theft.