Education, housing, health care reform will keep Legislature in Montpelier for a month

By Guy Page

After intense negotiations, Vermont’s conference committees of House and Senate negotiators agreed Friday on three major spending bills for the 2025–26 fiscal year, covering the state budget, transportation funding, and capital construction projects. 

All three bills now head back to both chambers for final approval. Meanwhile, unresolved House and Senate differences on health care, housing and especially education reform are likely to keep the Legislature in session for at least another month. An additional $1.5 million has been allocated to cover the cost of extending the Legislature until adjournment and for a possible veto session.

$9 billion state budget agreement reached by House, Senate

Members of the state budget conference committee, including representatives from both the House and Senate, signed off on the new version of H.493 Friday afternoon, capping a demanding week of negotiations marked by compromise across party lines.

“There is something in the package for everyone to take issue with—as well as something to like,” Rep. Jim Harrison (R-Chittenden) noted, highlighting the breadth of the deal.

One of the more contentious elements was a proposed $700,000 allocation to launch a climate superfund program aimed at holding oil companies financially accountable for climate-related damages in Vermont. Critics, including Governor Phil Scott, Harrison and most Republicans, expressed concern about the legal risks and potential financial burden on Vermont taxpayers, especially as the law is already facing lawsuits from the U.S. Chamber of Commerce, the oil industry, U.S. Justice Department and 24 other states. 

A compromise was eventually reached to reduce the funding to $350,000. “We reached a compromise on the issue and agreed to split the difference to 350k,” Harrison said. 

School, housing, health care conference committees still at work

The capital construction and transportation bills, which fund everything from building repairs to road maintenance, were also finalized on Friday. Under typical circumstances, such agreements would signal the legislative session’s end is near. However, ongoing debates on education funding, housing reform, and health care changes suggest the session may be extended by several weeks.

School taxes to rise 1% due to one-time spending of surplus $$

Meanwhile, the legislature approved the annual “yield bill” setting statewide education property tax rates. By applying one-time surplus funds, lawmakers managed to cap the average tax rate increase at about 1%. Still, rates may vary by community, and some legislators warned that relying on surplus dollars could trigger sharper increases next year.

Safe injection site bill passed, sent to guv

In other legislative news, the opioid response bill (H.218) was passed and sent to the Governor. The measure allocates funds from the Opioid Abatement Special Fund, including startup funding for Burlington’s safe injection site, a controversial initiative that survived a gubernatorial veto last year.

H.218 was subject to two House roll calls. One passed with more than a third no votes, the other with less than a third. The Legislature may override a veto if two-thirds vote yes. 

32 bills passed, 15 signed into law

To date, 32 bills have passed both chambers this session, with 15 already signed into law. Two bills—both mid-year budget adjustments—have been vetoed.

Road salt bill likely dead

On the environmental front, the road salt reduction bill (H.86) was sent back to committee and is considered effectively dead for this session. Municipal concerns about cost and liability played a key role in halting its progress.

Finally, Vermont Parks Forever announced a new pilot program offering free day-use access to state parks for up to 100,000 income-eligible residents this year—a move aimed at expanding access to outdoor recreation across the state.

As fiscal negotiations wrap up, attention now turns to the remaining high-stakes policy debates. Lawmakers and advocates alike are seeking progress on housing, education, and health care in the coming weeks.

This article was sourced partly from Rep. Jim Harrison’s weekly newsletter.