|
Getting your Trinity Audio player ready...
|
By Matt Cota
In Montpelier, the legislative session is underway, and housing remains front and center. As Vermont works toward a goal of 40,000 new housing units by 2030, lawmakers this year face a central question: will recently enacted tax reforms and infrastructure tools finally translate into shovels in the ground?
The cornerstone of the state’s long-term housing strategy is the new Community and Housing Infrastructure Program (CHIP). Established under Act 69, CHIP is a first-of-its-kind, housing-specific tax increment financing tool that allows municipalities to borrow against future property tax revenue to cover the high upfront costs of public infrastructure—such as water, sewer, and roads—that often stall new development. With capacity for up to $2 billion in investment over the next decade, CHIP is designed to unlock “missing middle” and affordable housing in both rural and urban communities.
Governor Scott recently took an additional step to reduce construction costs by issuing an executive order allowing builders to use 2020 energy standards rather than newer, more expensive requirements. The change is estimated to save roughly $12,000 per home—an important consideration as lawmakers look for ways to improve housing affordability without new subsidies.
Housing is just one of several affordability challenges greeting legislators as they return to the Statehouse. Education taxes remain a major concern. Without a state subsidy, education property taxes could rise by as much as 12% in 2026. That follows a five-year period in which property taxes increased by more than 40%, even as K–12 enrollment has declined by roughly 16% over the past two decades.
Health care costs continue to strain household and business budgets. Vermonters now spend nearly 20% of household income on health care. For small employers, the impact is especially acute: a silver-level health plan covering five employees costs more than $8,500 per month in Vermont, compared to roughly $5,000 in neighboring New Hampshire.
Transportation funding presents another looming challenge. Vermont’s Transportation Fund faces a structural deficit, and by FY27 the state could experience a $30–$35 million shortfall in matching funds—potentially putting up to $220 million in federal infrastructure dollars at risk. Lawmakers are expected to consider legislation later this session to redirect a portion of the Vehicle Purchase & Use Tax back to road and bridge maintenance.
| The combined federal and state tax on gasoline sold will be 50-cents per gallon in the first quarter of 2026. Most of the money goes directly to maintaining and improving our roads, bridges, and transportation infrastructure. There are also fees on electric vehicles that pay for EV infrastructure. Learn more about the Vermont gas tax, diesel tax, and EV Infrastructure fee here. |
| California Dreaming Vermont’s web of vehicle emissions regulations may finally get sorted out in 2026. Way back in 2012, the state adopted California’s Advanced Clean Cars (ACC I) regulation, which applied to vehicle model years 2015 through 2025. More stringent than federal standards, the first ACC encouraged automakers to reduce tailpipe emissions and sell vehicles that burn less gasoline, while also increasing sales of electric and plug-in hybrid vehicles.ACC I was later replaced in California and Vermont by the Advanced Clean Cars II (ACC II) regulation, which requires automakers to sell increasing numbers of battery-electric vehicles beginning in 2026 and ultimately bans the sale of new internal combustion engine vehicles by 2035. However, Governor Phil Scott issued an executive order directing state agencies not to enforce Vermont’s ACC II sales mandates through December 31, 2026.And then last summer Congress approved — and President Trump signed — a Congressional Review Act resolution overturning the EPA waivers that allowed California and other states, including Vermont, to adopt EV mandates. Vermont’s Attorney General has since joined a multi-state lawsuit seeking to preserve that authority.As a result, it remains unclear whether Vermont reverts to federal standards or the prior ACC I framework. That decision will directly affect which vehicles can be sold and registered in Vermont. For example, the 2026 Ford Escape, Lincoln Corsair, Dodge Durango R/T (392), and Durango Hellcat meet federal standards but do not have ACC I certification. At a recent meeting of the Vermont Climate Council, the Agency of Natural Resources signaled its intent to pursue rulemaking to continue enforcing the prior ACC I standard rather than defaulting to the less stringent federal rules. When that occurs — and how it interacts with ongoing litigation — remains unresolved. |
The author is principal of Meadow Hill Media, a Vermont advocacy organization active in the Vermont State House.
Discover more from Vermont Daily Chronicle
Subscribe to get the latest posts sent to your email.
Categories: Legislation, News Analysis
These legislators live in fantasy land ….. we haven’t built 40000 units in the last 25 years …… now in the next 5 they plan on adding 40000 ???? I think 5000 would be a stretch …… they have absolutely no clue …..
Maybe it is really about bonding more debt to cover old debt and insider trading on that debt. Never mind there is nothing to see here.
Larry – they sense a full-blown revolution finally nearing…do you see what’s going down in Minneapolis today??? Vermont is being set up to be one of the Communist “utopia’s” they are creating. Properties will be taken and hundreds of thousands of ne’er-do-wells will be given the red-carpet treatment here. Emphasis on the word: RED.
Despite Trump’s progress with regard to the illegal alien crisis that Biden/Obama’s goons created – VT is setting itself up to be the largest “sanctuary” Communist state one can imagine……welcome ALL illegals, drug abusers & dealers, cartel members, & criminals of all sorts.
And it is ALL being designed to be construed as acts founded upon “love”, “compassion”, and, of course, “equity” for all.
Sounds crazy, right? How do men who proclaim themselves to be women & therefore strip down in women’s locker rooms sound?
This entire movement is insane – a people who have collectively rebelled against a free nation (in spite of all its faults & corruption) and WANT instead to live in a nation wherein the state controls nearly their every move, religion is absent, & Communism reigns.
Agree, our ‘leaders’ want to follow the NYC example, Governor Tim Walz just said his States investigation will be fair and truthful and not to believe the ‘propaganda machine’ out of Trump Administration. Interesting
“Transportation funding presents another looming challenge. Vermont’s Transportation Fund faces a structural deficit, and by FY27 the state could experience a $30–$35 million shortfall in matching funds—potentially putting up to $220 million in federal infrastructure dollars at risk. Lawmakers are expected to consider legislation later this session to redirect a portion of the Vehicle Purchase & Use Tax back to road and bridge maintenance.”
Here’s a novel idea how about “redirecting” ALL of the purchase and use tax to the transportation fund. Currently 1/3 of it is stolen for the education fund, as if it isn’t already bloated enough. Someone can correct me about the percentage, but it is happening and I believe it’s 33%.
They said” You will own nothing and be happy.”
They are serious about the you will own nothing!
Gov Scott voted for this.
This is all rental housing, paid for with your tax money to replace you with a cheaper workforce.
They have no plan for any significant changes.
You will own nothing and be happy.
Suck on it! They say.
We are hell bent on being the first colony of the United Nations, a Marxist utopia.
You got it.
And they divert our attention via the clinically insane ideologies such as people can change their sexes, fighting faith in God (as it nonetheless increases thanks be to Him), federal & Constitutional law can & should be trampled (as with open borders) etc. which all too simultaneously pit Americans against each other — men vs. women, blacks vs. whites, young vs. old in order to achieve their end goal.
These and more are the rumblings of revolution by that very U.N. agenda meant to squelch our intrinsic freedoms and usher in ” democrat socialism”, a paradoxical, meaningless label that disguises its primary intention, which is nothing less than Communism.
And Vermonters largely still cannot comprehend this – with otherwise intelligent posters on here still targeting “flatlanders” (i.e.: perhaps otherwise patriotic Long Islanders, mostly a conservative holdout in NYS investing their hard-earned money in VT??) in the downfall of VT & refusing to recognize the true enemy, the home-grown Communists here as well as their out-of-state comrades being elected to state offices and altering the fabric & the culture of this state and this nation.
I pray this is not the beginning of the end, but only God knows and again, in the end He wins either way. So, there’s that.
I’ve been praying for the book of Esther to brought before us, real time! Jesus Christ is delivering, it’s a really good read for people to understand how God works. Think about it, he gave them the freedom to commit all this fraud, they chose to go a different route, rather than follow him, they chose and choose to follow the money! lol……
And look where it’s leading them! He is and will continue to humble them like they have never, never been humbled before. Jesus Christ is in control not the United Nations, not Bill Gates, not Jeff Bezos….and I think and pray that Trump understands that he is not in control either. The last election and a couple of shootings perhaps enlightened him tho understand that.
Pride goeth before the fall = pride leads you over the cliff!
They are so full of themselves they cannot see truth from fiction, I’m right and you are wrong, let me show you and if you don’t believe me I’ll cancel you!
We are witnessing God at work, this is going to make the book of Esther look like child’s play. Thank you Lord Jesus, show them your full might and power. We needn’t worry, we do need to do what is right, Jesus is driving this show, thank God for that.