Legislative Update 5/22/25

After a slow start to a particularly challenging session, we are now (finally) nearing adjournment but lawmakers still have at least another week or two of work ahead of them. Even though the Governor signed the $9B budget into law, usually the last bill of the session, Scott has also made it clear that he will call legislators back if they adjourn before finalizing the massive education funding reform bill that is currently on hold in the Senate. When they do finally adjourn, House and Senate leaders are planning to include language in their adjournment resolution that would allow the Speaker and Pro Tem to call members back into session of a certain about of federal funding is lost.

Here is a brief update on where things stand…

State Grant Bill

The state grant bill, H. 233, will regrettably not be advancing this year. Common Good Vermont is hopeful that we will be able to work directly with the Agency of Administration to address challenges with state grants and contracts. In testimony on 4/30, Secretary Sarah Clark committed to taking action this summer and we look forward to moving this work forward together.

To all who have supported and engaged in this effort, thank you, and we will be in touch with updates and requests for input. In the meantime, please continue to report challenges with state grants HERE – this will be important both for identifying ongoing challenges, and tracking improvement.

Finally, thank you to the House Government Operations Committee, especially Chair Matt Birong, Vice Chair Lisa Hango, and Representative Kate Nugent, for their support on this issue.

Budget

The $9B FY26 Budget negotiated by the Committee of Conference has been adopted by the House and Senate and signed by the Governor. Compared to the Senate passed budget, the Conference Committee proposal reduces general fund base spending by $21M and includes a directive to use anticipated state revenue surpluses to fill gaps created by anticipated federal funding cuts. More information:

Bills on the Move

  • Employment
    • H.461 – An act relating to expanding employee access to unpaid leave (passed by House & Senate 5/16, delivered to Governor 5/16)
    • S.117 – An act relating to rulemaking on safety and health standards and technical corrections on employment practices and unemployment compensation (passed by House & Senate 5/16, headed to Governor)
  • Health Care
    • S.27 – An act relating to medical debt relief and excluding medical debt from credit reports (signed by Governor 5/15)
    • S.126 – An act relating to health care payment and delivery system reform (passed by House 5/21, headed back to Senate to consider as amended)
      • VermontBiz: : “S.126 tackles long-standing concerns with Vermont’s fragmented and increasingly expensive health care system by moving toward a system that rewards quality, access, and sustainability. The bill authorizes the Green Mountain Care Board to implement reference-based pricing to rein in commercial health care costs and requires a strategic redesign of how care is delivered across Vermont. It also prioritizes investments in primary care, long-term care, and workforce development, while giving hospitals and insurers new tools to reduce administrative burdens and improve affordability for patients.” Read more.
  • Miscellaneous
  • Housing/Homelessness
    • H.91 – An act relating to the Vermont Homeless Emergency Assistance and Responsive Transition to Housing Program (up for 3rd reading in the Senate)
    • S.127 – An act relating to housing and housing development / H.479 – An act relating to housing
      • Two omnibus housing bills are nearing the finish line in the House and Senate – the differences between the two will need to be reconciled.
      • Campaign for Vermont analysis: S.127 / H.479
      • Governor’s Comments 5/22