By the Vermont Chamber of Commerce

A full week beyond the budgeted timeline for the session’s adjournment, Vermonters are asking what they are getting in return for an extension that multiple reports estimate is costing taxpayers $300,000 each week to continue operating. Based on the pace inside the State House this week, it is a fair question.

With incremental movement on a handful of issues, including finalized negotiations on S.325 and reforms to the Act 181 conference committee, many of the session’s most significant debates remain stalled without clear resolution. Education transformation, tax policy, and major budget decisions continue to linger.

Data Privacy: The House Commerce and Economic Development Committee continues to debate S.71, the comprehensive data privacy bill that has been under consideration since February 2025. The committee is under a tight deadline to finish its deliberations and vote on a final version of this bill which may or may not meet the requirements outlined in the Governor’s 2024 veto letter on the last passed comprehensive data privacy bill.

Education Reform: The Senate has stalled action on H.955, delaying movement on the bill until broader consensus can be reached between the Legislature and the Governor, who has repeatedly indicated a willingness to veto a proposal lacking meaningful education cost savings. Continued progress towards greater efficiencies remains necessary to slow future property tax rate increases. 

Budget: A Committee of Conference for H.951 met to reconcile differences between the House and Senate passed versions of the bill. While progress continues across several issue areas, some programs and funding requests remain unresolved as broader disputes over education reform and the potential for a veto continues to delay movement on related legislation.  

Yield: A Committee of Conference met to reconcile differences between the House and Senate versions of H.949, reviewing Senate changes to excess spending thresholds. These provisions could dictate how aggressively the state will constrain education spending growth to improve long-term affordability.

Tax Conformity: A Committee of Conference for H.933 met, centering debate on state oversight, municipal revenue allocation, and Vermont’s participation in federal incentive programs. With increasing overlap between the tax, budget, yield, and education bills, progress on H.933 is likely to move in tandem with broader negotiations on the session’s major fiscal packages.

Land Use: A Committee of Conference for S.325 passed a compromise bill, making only minor changes to the House-passed version.

Healthcare Savings: The House Ways and Means and House Appropriations Committees advanced S.190, directing health care savings toward Qualified Health Plans and teachers, resulting in comparatively slower relief for the wider commercial market in the coming year. The bill now moves to the House Floor.

Alcohol: The House advanced H.921, a bill that will streamline alcohol serving and distribution regulations. The bill now moves to the Governor’s desk.

Noncompete: On a vote of 85-48, the House advanced S.230, concurring with the Senate version of the bill which limits the prohibition of non-competes to health care workers. The bill now moves to the Governor’s Desk.

Bottle Bill: The Senate Finance and Senate Appropriations Committees advanced H.915, moving the state closer to restructuring Vermont’s bottle redemption system through adoption of a Producer Responsibility Organization model and creation of an estimated $2 million in new costs for beverage manufacturers. The bill now moves to the Senate Floor.

Cannabis: The House Appropriations Committee advanced S.278. The bill now moves to the House Floor.

Housing: The House advanced an amended version of S.328, sending the bill back to the Senate to consider changes, while the Senate Natural Resources Committee advanced H.775 to the Senate Floor. Differences between the bills remain over the modular housing program and multiunit housing permitting, and it is unclear which bill will ultimately be the final housing development bill.

Wastewater Systems: The House advanced S.212, adding a requirement for the Agency of Natural Resources to report back on potential solutions for potable water supplies and wastewater systems that extend onto neighboring properties. The bill now returns to the Senate.

Vocational Rehabilitation: The Governor signed S.173, enacting into law a bill that will maintain vocational rehabilitation program stability while evaluating potential improvements.

Sister State: The Governor vetoed H.674, citing concerns over the Sister State Program Committee’s sole authority to terminate state partnerships. The bill’s language has now been added to H.907 with an amendment to grant the governor the authority to terminate sister state partnerships. Following this week’s passage in the House, the bill now moves to the Senate.

Telecommunications: The Senate advanced H.527, ensuring telecommunication improvement projects remain within the Public Utility Commission approval process while adding a public meeting requirement for larger projects that may extend project timelines. The bill now returns to the House.

Primary Care: The House Ways and Means and House Appropriations Committees advanced S.197, a bill exploring expansion of primary care services and movement toward a universal primary care model. While the bill does not yet include new spending, potential future funding mechanisms such as increased claims taxes may increase healthcare costs for employers.

Career Technical Education: The House Education and House Appropriations Committees advanced S.313, removing the proposed legislative working group while adding language to the Agency of Education’s report to address access and funding for the Adult Diploma Program to support improved workforce pathways. The bill now moves to the House Floor.