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VermontH.4932025-2026 SessionHouseWALLET
An act relating to making appropriations for the support of the government
Sponsored By: Sponsor information unavailable
Signed by Governor
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163 provisions identified: 117 benefits, 22 costs, 24 mixed.
Emergency housing help for qualifying households
The law provides $30.5 million for General Assistance Emergency Housing in fiscal year 2026. Households must attest that they lack a fixed, regular, and adequate place to sleep. At least one member must be 65 or older, 19 or younger, pregnant, or have a qualifying documented disability. Qualifying death, disaster, eviction, violence, or dangerous conditions also provide paths to eligibility. Assistance depends on available housing and appropriated funds.
Housing recipients must seek alternative placements
Emergency housing applicants and recipients must search for and accept available alternative housing. They must report their efforts to the Department for Children and Families at least monthly. The department must deny applications when it finds no search effort or access to an alternative placement. For current recipients, it must end assistance at the end of the current approval period.
Winter shelter access with hotel limits
Community shelters come first; hotels are used when district shelter space is inadequate and rooms are available. Hotel stays are limited to 80 days per 12 months, excluding December 1, 2025, through March 31, 2026. Winter emergency housing is available during that period. A 1,100-room nightly cap applies July 1–November 30, 2025, and April 1–June 30, 2026. Beginning July 1, 2024, department payments cannot exceed the lowest advertised rate or $80 per room daily, whichever is lower; household size and composition can justify multiple rooms.
Funding for legal and health advocates
The law provides about $2 million for the Office of the Health Care Advocate contract. It provides about $1.72 million for Vermont Legal Aid, including poverty law and mental health services. Another $650,000 maintains Legal Aid capacity and helps meet increased demand. Supported work includes eviction prevention, foreclosure protection, and help with consumer debt.
Fuel help while households await benefits
Income-eligible households can receive a crisis fuel grant while waiting for an expedited seasonal fuel benefit. The Department for Children and Families can approve it when the delayed benefit cannot arrive before fuel runs out. The grant counts toward the household’s allowed crisis grants for that winter. The law does not set a grant amount.
Higher income limits for Medicare help
The law raises the Qualified Medicare Beneficiary income limit from 145% to 150% of the federal poverty level. It also raises the Qualifying Individual limit to the highest percentage federal law allows based on that threshold. Medicare beneficiaries must still meet the applicable program requirements.
Medicaid access expands for disabled workers
The law expands Medicaid for working people with disabilities to an income limit of 250% of the federal poverty level. Resource limits still apply. Human Services must adopt rules for documenting workers' earnings, replacing the documentation methods previously written into law. The provision does not state which documents those rules require.
More funding and protection for SNAP
Vermont adds $1.3 million to 3SquaresVT food assistance funding, bringing the appropriation to about $45.68 million. For the rest of federal fiscal year 2025, Children and Families must use available SNAP discretionary exemptions as federal regulations allow. Exemptions must prevent otherwise-occurring benefit interruptions and months counting toward time-limited work-rule benefits. The funding increase does not specify a larger benefit for each household.
More time to enroll in health coverage
Vermont Exchange enrollment for 2026 plans runs from November 1, 2025, through January 15, 2026. Year-round enrollment is also available to people eligible for advance federal premium tax credits with expected household income at or below 200% of the federal poverty level. People eligible for coverage through their relationship to that person can also enroll. These changes expand enrollment access, not premium or subsidy amounts.
Protections for HIV services and medication
In fiscal year 2026, specified HIV/AIDS grants cannot fall below fiscal year 2025 levels without prior Joint Fiscal Committee approval. Ryan White Title II and Vermont Medication Assistance funds follow federal distribution guidelines; solely state-funded services do not. If medication funds cannot help everyone eligible, the Human Services Secretary must notify the committee. The Secretary must work with people living with HIV/AIDS on an access plan until lawmakers can act. This planning duty does not guarantee enough funding for everyone.
Funding for housing and heating repairs
The law provides $4 million from the General Fund for Vermont Housing Improvement Program 2.0 in fiscal year 2026. It also appropriates $4 million in available federal recovery funds for the Manufactured Home Improvement and Repair Program. Another $750,000 within weatherization assistance is reserved for repairing or replacing home heating equipment. These provisions do not set individual household award amounts.
Housing loans with covered rent protections
The law provides $16.1 million in fiscal year 2026 for rental revolving loans and middle-income homeownership development. The package also funds the First Generation Homebuyer Program, with at least $250,000 reserved for it. Units subsidized through the Rental Housing Revolving Loan Program have a 3% annual rent-increase limit unless the housing agency authorizes another amount. That protection lasts seven years or the full loan repayment period plus three years, whichever is longer. It does not cover all Vermont rentals.
More shelter space and housing guidance
The law provides $2 million from the General Fund to expand shelter capacity in fiscal year 2026. Case managers employed by or under contract with the Agency of Human Services must help clients find suitable housing. These changes do not guarantee a housing placement or provide a cash payment.
Diploma path for former completion students
Vermont high schools may award diplomas to students who participated in the High School Completion Program before July 1, 2024. Students must have met their individual graduation plans and qualified under the program rules in place June 30, 2024. The provision sets no deadline for awarding these diplomas.
Eight public defender jobs gain permanence
The Defender General's office can convert eight limited-service positions to exempt permanent status in fiscal year 2025. The specified positions include administrative, technology, legal, attorney, financial, and secretarial roles. The law authorizes the conversions but does not set a pay increase.
Tuition funding helps Vermont National Guard members
The law directs $1.219834 million to the Vermont Student Assistance Corporation for the National Guard Tuition Benefit Program. Eligible Vermont National Guard members can receive tuition help. This provision does not state a per-person award or detailed eligibility rules.
Cannabis businesses get funded assistance options
For fiscal year 2025, $500,000 moves from the Cannabis Regulation Fund to the Cannabis Business Development Fund. The Department of Economic Development receives that money for technical help, loans, and grants. Businesses must qualify under Vermont’s cannabis business assistance law, 7 V.S.A. § 78. Individual award amounts are not stated.
Disaster relief fund helps affected businesses
The law directs $2 million from the $7 million Business Emergency Gap Assistance Program to business disaster relief. A grant to the Vermont Economic Development Authority establishes the fund. The fund supports businesses following a natural disaster. Individual award amounts and detailed eligibility rules are not stated.
State reserves money for funding shortfalls
After required budget steps, Vermont designates the first $138.97 million of any remaining fiscal year 2025 balance for its 2026 budget. Contingent uses follow the law’s order as funds allow; any leftover balance goes into a state reserve. The listed uses include $50 million for Emergency Board transfers after qualifying federal funding cuts while lawmakers are out of session. Two separate $30 million General Fund reserves require later legislative approval before use. One addresses federal shortfalls; the other can address those shortfalls, Medicaid, human services, property tax relief, housing, or another public need.
More state funding for Medicaid programs
The law adds about $125.10 million to Human Services Global Commitment grants, bringing that budget to about $2.165 billion. The Medicaid Global Commitment line rises about $64.86 million to about $964.96 million. State-only Medicaid rises about $4.75 million to about $67.78 million; matched Medicaid outside the waiver rises about $3.24 million to about $38.23 million. These are separate budget lines, not new payments to each patient. These funding provisions do not specify changes to individual eligibility or benefit amounts.
State and schools fund teacher pensions
The law sets the annual teacher retirement contribution at $212.752627 million. The State pays $199.377627 million, and local schools or education entities pay $13.375 million. This includes $41.414649 million for current pension costs and $171.337978 million for past pension obligations. Individual pension amounts do not change.
State funding supports Vermont college operations
For fiscal year 2026, the law provides about $57.38 million for University of Vermont operations. Vermont State Colleges receive about $52.47 million for operations. The New England higher education compact receives $86,520. All three allocations come from the General Fund. These provisions do not set tuition cuts or individual student aid amounts.
Vermont ends its brain injury fund
The law ends Vermont's Traumatic Brain Injury Fund. This repeals the fund, not the separate brain injury Medicaid waiver appropriation. The repeal provision does not identify replacement help or the amount of assistance affected.
Worker savings options and employer duties
Vermont Saves coverage now depends on whether an employer currently offers a qualifying retirement plan, replacing a three-calendar-year lookback. Covered employers must follow program requirements; government employers and businesses operating only during the current calendar year are excluded. The Treasurer can add a traditional IRA option alongside the Roth IRA, allowing participants to choose either or both. The Treasurer can also permit flat-dollar contributions instead of a percentage of pay. IRA contribution and eligibility limits still apply.
Federal funding losses trigger budget reviews
When federal revenue falls, Vermont’s Secretary of Administration can cut or move funds for affected government functions. Plans below the greater of $2 million or 0.5% of a function’s unduplicated total do not need Joint Fiscal Committee approval. Committee approval is required above both thresholds but below the lesser of 25% of that total or $50 million. The committee can recommend temporary program support, returning uncommitted funds, or cuts and transfers; reductions and transfers cannot exceed the federal revenue loss. Cuts over 5% of an appropriation must follow a separate state budget review process.
State redirects money across budget funds
For fiscal year 2026, General Fund transfers include $81.155462 million for bond debt, $77.2 million for education, and $9.647469 million for capital infrastructure. They also include $4.3 million for tax computers, $7 million for communications technology, $185,000 for Fish and Wildlife, and $450,000 for domestic and sexual violence. Environmental Contingency receives $9.52 million plus returned funds estimated at no less than $2 million. Transportation transfers $305,825 for bond debt and $523,966 for downtown transportation improvements; Education transfers $1.5 million for tax computers. Clean Water transfers $11 million for agricultural water quality and $120,000 for lake crisis response. The infrastructure and reserves subaccount transfers $12.5 million to Transportation and $1 million to capital infrastructure. The General Fund receives $4.64196 million from Human Services earned federal receipts and $2 million from Attorney General court-order funds. It also receives $46.204523 million from insurance regulation, $21.745635 million from securities regulation, and $7.389063 million from unclaimed property. The General Fund transfers $1.053073 million to captive insurance regulation. Estimated sports wagering and liquor transfers are $7.6 million and $14.849754 million, limited to year-end profits after covering deficits.
Accessible bathrooms at Essex Meeting House
The law provides $50,000 from the General Fund to build or upgrade bathrooms at the Essex Meeting House. The bathrooms must meet Americans with Disabilities Act rules. The funding supports access for people who use the building, including people with disabilities.
Families keep access to pilot funds
Unspent money from the $2 million, two-year Reach Ahead Pilot Program remains available in later fiscal years. The money remains limited to increased monthly food help, a longer eligibility window after leaving Reach Up, and incentive payments. The law does not specify an individual payment amount.
College course expense help for low-income students
For fiscal year 2026, the law provides $82,450 for flat-rate, need-based stipends or vouchers. The Education Fund and General Fund each provide $41,225. Financially disadvantaged students in dual enrollment or Early College can use awards for books, transportation, and fees. The Vermont Student Assistance Corporation sets eligibility criteria. Awards are first-come, first-served until the money runs out; individual award amounts are not stated.
Pension investment staff get recurring pay reviews
Human Resources must conduct and implement a market pay analysis for all classified Vermont Pension Investment Commission positions. The first deadline is January 15, 2026, with another review every three years. Reviews can consider comparable public-sector pay, job needs, hiring, retention, and budget effects. They can recommend pay adjustments, but the law does not guarantee raises.
Residential students gain education reimbursement recognition
ANEW Place's Independence Place Program counts as a 24-hour residential program for education-cost reimbursement. The law does not specify a reimbursement amount or effective date for this classification.
Liquor licensees get ordering website funding
The law allocates $1.82 million from the Enterprise Fund to design and build a business ordering website. The website is intended to improve ordering and payment for on-premise liquor licensees. The law does not set business savings or promise lower consumer prices.
Added funding for child welfare records
The law adds $1.8 million from the General Fund to Vermont’s Comprehensive Child Welfare Information System. The money supports the State’s child welfare records system. The provision does not change who qualifies for services or provide family payments.
Broader disaster funding for affected communities
The law broadens an existing $30 million appropriation to cover Vermont’s share of federally declared disasters in fiscal years 2024–2025. An existing $15 million appropriation can cover denied federal claims for presidentially declared disasters in those years and unexpected statewide recovery costs. It also covers administration of American Rescue Plan Act State Fiscal Recovery Fund programs, including limited-service jobs and contracts. Vermont must raise its match on approved flood projects as high as available funds allow. Eligible counties must have 2023 or 2024 flood impacts and qualify under DR-4744-VT, DR-4762-VT, DR-4810-VT, DR-4816-VT, or DR-4826-VT.
Community stations get emergency radio grants
The law provides $150,000 for community radio grants in fiscal year 2026, supporting emergency equipment, generators, software, and training. Seven active stations can receive up to $25,000 each; three stations under construction can receive up to $10,000 each. Applicants must be Vermont-licensed, nonprofit, noncommercial stations, show emergency broadcasting experience or capacity, and submit a detailed plan. Recipients must report itemized expenses and emergency-readiness, operational, and community impacts by June 30, 2026. Separately, the law provides $800,000 for mobile and portable radio equipment without naming the receiving agencies.
Corrections programs receive treatment planning support
Justice Reinvestment II funds a $390,000 grant to Lund’s Kids-A-Part Program and $100,000 to Pathways Vermont’s Forensic Assertive Community Treatment Team. Corrections also receives $200,000 from the General Fund to hire a consultant and develop a treatment-focused facility transition plan. The plan can cover the Northeast Correctional Complex, Caledonia County Work Camp, or parts of either or both. The money funds planning, not a completed transition; the grants do not specify individual eligibility or household payments.
Emergency relief fund receives more money
For fiscal year 2025, the General Fund transfer to the Emergency Relief and Assistance Fund rises to $6.5 million. The prior transfer was $830,000, so the increase is $5.67 million. The money supports emergency relief for residents and local governments. The provision does not set individual eligibility or payment amounts.
Extra road grants for Vermont towns
The law provides $128,750 from the Transportation Fund in fiscal year 2026. The money funds extra grants to municipalities with class 1 town highways. It supports local roads rather than direct household payments.
Flood-hit towns can get earlier funding
In fiscal years 2025 and 2026, eligible towns can request advances before approved flood recovery projects are complete. Advances can cover up to 70% of the state's funding match for the project's nonfederal share. Towns must have 2023 or 2024 flood impacts in counties eligible under FEMA declarations DR-4744-VT, DR-4762-VT, DR-4810-VT, DR-4816-VT, or DR-4826-VT. The Secretary of Administration can approve advances; the law does not create household payments.
Funding for local media and journalism
The law directs a $1.35 million General Fund grant to the Vermont Access Network to maintain current operations and programming. It also provides $50,000 from the General Fund for local civic journalism awards in fiscal year 2026. Neither provision creates a household payment.
Funding for wildlife radios and fishing
The law provides $80,000 for mobile and portable radios for the Vermont Department of Fish and Wildlife. It also provides $30,000 for the Lake Champlain International Fishing Derby. Both General Fund allocations are for fiscal year 2026.
Funding to clean up polluted sites
The law provides $1 million from the General Fund for brownfields cleanup and redevelopment in fiscal year 2026. The money supports work at polluted sites, not direct payments to households.
Grants support veterans and civic programs
The law provides $1,000 for the Vermont Medal Program and $2,000 for the Governor’s Veterans Advisory Council. It provides $7,500 for the Veterans’ Day parade. The American Legion receives $10,000 for Boys’ State and Girls’ State youth civic programs.
More flood recovery grants for towns
The law raises municipal flood recovery funding from $200,000 to $1.8 million. Eligible towns must be in counties covered by FEMA declarations DR-4810-VT or DR-4744-VT. Awards use reported public-infrastructure damage from 2023 or 2024 flooding, estimated as of June 1, 2025. Grants are $10,000 for damage of $100,000 to under $250,000; $20,000 for $250,000 to under $1 million; $30,000 for $1 million to under $2 million; $50,000 for $2 million to under $5 million; and $75,000 for at least $5 million. Grants cannot pay for FEMA-related projects. Money not awarded by September 30, 2025 returns to the General Fund and moves to the Emergency Relief and Assistance Fund. If funding is insufficient, the Commissioner may use excess receipt authority from the PILOT Special Fund to authorize more spending.
More funding for courts and victims
The law adds $2.55028 million for the Judiciary, bringing its funding to $73.589789 million. It adds $407,800 for state’s attorneys, bringing their funding to $19.751495 million. Crime victim advocates get $38,000 more, bringing funding to $3.158552 million. The law also provides $800,000 for county courthouse network wiring and security upgrades.
More funding for fire response equipment
The law provides $275,000 from the General Fund in fiscal year 2026 to buy a fire response vehicle. It also grants $55,000 to the Vermont Rural Fire Protection Task Force to design dry hydrants. These funds support fire response equipment and rural fire protection planning.
More funding for State Police personnel
The law adds $1.9 million to Vermont State Police personnel funding for fiscal year 2025. Personnel funding reaches $76.655468 million, and the total appropriation reaches $93.785403 million. The law does not specify new staffing levels or services.
More funding for Vermont correctional services
The law adds $1.33559 million for Vermont correctional services. Total funding rises from $172.386309 million to $173.721899 million. This provision does not specify changes to correctional services or individual rights.
More funding for wildlife field services
The law adds $290,000 to Fish and Wildlife support and field services for fiscal year 2025. Total funding reaches $30.584005 million, including $8.557967 million from the General Fund. The law does not specify a particular service expansion.
More staff for human rights services
The law provides $250,000 for two permanent exempt positions at the Vermont Human Rights Commission. These are an Intake Specialist and a Staff Attorney Investigator. It also raises the Commission’s appropriation by $35,137, from $1.0428 million to $1.077937 million. These provisions fund Commission work but do not create new individual rights.
More support for Vermont police services
Public safety administration gets $777,027 more, bringing funding to $11.420706 million. The law provides $115,000 for one permanent classified canine head trainer at the Vermont Criminal Justice Council. That position comes from the state position pool. It also provides $35,000 to the Southern Vermont Wilderness Search and Rescue Team for snowmobile enforcement in Bennington, Windham, and Windsor Counties. The Public Safety Commissioner may make a performance-based contract with the Essex County Sheriff’s Department for services both agree on.
New awards for local civic journalism
The law directs awards of $1,000 to $10,000 to local civic journalism organizations or businesses. The Secretary of State’s Office works with the University of Vermont Center for Community News on the awards. They set selection rules and select recipients. The provision does not state the total funding available.
Police receive drug enforcement and vehicle funding
The law allocates $405,000 in General Fund money for Vermont Drug Task Force grants. Of that amount, $190,000 must support three town officers focused on regulated drugs and prescription drug diversion. The Commissioner can assign uncommitted money to the task force or carry it forward. Another $2.1 million is reserved exclusively for buying, equipping, assigning, and disposing of State Police vehicles. These allocations fund enforcement operations without changing household benefits or adding a new household duty.
Small increases for Vermont environmental programs
The law adds $34,700 for forestry programs, bringing funding to $10.632735 million. Air and waste management gets $28,000 more, bringing funding to $43.755282 million. The Office of Water Programs gets $8,000 more, bringing funding to $150.889861 million. These provisions do not specify new environmental rules or changes in household costs.
State funds reconciliation and equity programs
The Truth and Reconciliation Commission receives $1.1 million from the General Fund in fiscal year 2026. The Office of Racial Equity receives $110,000 to continue the Inclusion, Diversity, Equity, Action, Leadership Vermont program for another year. These appropriations support the commission and program, not direct household payments or specified changes to individual rights.
State grant supports Empty Arms Vermont
The law provides a $40,000 General Fund grant to Empty Arms Vermont in fiscal year 2026. The provision does not describe funded services, individual eligibility, or household payment amounts.
State supplies cybersecurity grant matching funds
Vermont provides $600,000 from the General Fund in fiscal year 2026 to match federal cybersecurity grants. The appropriation supports state participation in those grants. It does not name a specific project or provide direct household payments.
Transit agencies get volunteer coordinator funding
The law provides $600,000 from the Transportation Fund for volunteer coordinators in fiscal year 2026. Public transit agencies use grants to hire staff who recruit and retain volunteer drivers. These drivers serve people enrolled in State demand response transportation programs. The law does not promise a specific number of rides.
Vermont keeps its State Youth Council
The law removes the State Youth Council’s scheduled repeal on February 1, 2026. The council continues under its establishing law. This does not create a direct household payment.
Funding for legal and Medicaid enforcement
The law provides $1.8022 million to the Attorney General’s office from revenue available under state law. Subject to appropriation, its Medicaid Fraud and Residential Abuse Unit may retain half of the state’s share of qualifying recoveries. Only recoveries above the state’s share of Medicaid restitution qualify, and interest is excluded. Retained money must fund the unit’s work. This does not change household Medicaid eligibility or benefits.
Cannabis taxes fund substance misuse prevention
The law creates a Department of Health Substance Misuse Prevention Special Fund. Each fiscal year, it receives 30% of cannabis excise tax revenue, capped at $10 million. The money pays prevention costs, not household checks. The fund keeps its interest, and specified unused spending authority is restored in the following fiscal year.
Emergency funding helps preserve child care
The Commissioner can use up to 0.5% of each year's child care assistance appropriation for emergency provider relief. Relief helps programs at risk of closing or not opening because of financial hardship, including programs seeking licensing or registration. It can also help move children to another program after a closure. High-poverty areas with limited access to quality care get priority. For fiscal year 2025, the state must transfer caseload reserve funds as needed to support its child care assistance obligations.
Funding and oversight for quitting smoking
The Vermont Parent Child Center Network receives a $250,000 state grant for smoking cessation efforts in fiscal year 2026. Before providing the grant, the Health Department must require grantees to report activities, people served, and expected results. Grantees must provide that information within an agreed time frame. The Department must report it and results from earlier smoking cessation investments to legislative committees by January 15, 2026.
Funding supports home and community health services
The law provides $10.8 million for specified health and community services in fiscal year 2026 through Global Commitment. The General Fund provides $4.44852 million, and federal funds provide $6.35148 million. The money supports Support and Services at Home, Primary Care Medical Home, and Community Health Teams under the Blueprint for Health. The provision does not state individual benefit amounts or new eligibility rules.
Funding supports home help and primary care
The law provides $10.8 million in Global Commitment funding for fiscal year 2026. It supports Support and Services at Home, Primary Care Medical Home, and Community Health Team services under Blueprint for Health. The appropriation supports services rather than setting a payment for each person.
Grants support HIV care and harm reduction
For fiscal year 2026, the Health Department must award $475,000 from AIDS medication rebates for client support through a proposal process. Separate General Fund grants provide $140,000 to Vermont CARES and $100,000 to AIDS Project of Southern Vermont. HIV/HCV Resource Center receives $55,000, completing that $295,000 allocation. The law also requires $400,000 in HIV and harm reduction grants by September 1, 2025. The Department and specified providers must agree on that distribution; all these grants fund organizations, not household checks.
Matching funds support students' Medicaid services
The law includes two matching-fund entries for eligible school-based special education Medicaid services, each estimating $60 million in spending. One lists $24.714 million in local education agencies' state match and $35.286 million in federal funds. The other lists $25.302 million in state match and $34.698 million in federal funds, with the federal share transferred to the Medicaid Reimbursement Special Fund. It also identifies about $3.17 million in local mental health and developmental services agencies' state match for eligible mental health services. These entries support services, not a set payment to each student.
More care funding for veterans' home
Vermont Veterans' Home care and support funding rises by about $9.78 million. Its total appropriation grows from about $22.64 million to $32.43 million. The funding supports residents' care, but this provision does not change individual benefits or out-of-pocket costs.
More funding for aging agency operations
The law adds $1.242122 million for Department of Disabilities, Aging, and Independent Living administration and support. Total funding reaches $52.932657 million. This funds agency operations, not a stated increase in anyone’s benefits.
More funding for disability support services
Developmental services funding rises by about $1.96 million to about $331.26 million. Advocacy and independent living grants increase by $210,738 to about $24.78 million. Traumatic brain injury home- and community-based waiver funding rises by $19,515 to about $6.86 million. These funding increases do not specify changes to individual eligibility, service levels, or out-of-pocket costs.
More funding for health insurance surveys
The law raises fiscal year 2025 funding for the Vermont Household Health Insurance Survey from $400,000 to $550,000. The General Fund money supports Department of Health survey work. It does not change insurance coverage or household payments.
More funding for health services offices
Health Department administration and support gets $646,940 more, bringing funding to $24.525557 million. The Human Services Secretary’s Office gets $841,800 more, bringing funding to $28.077234 million. The Human Services administrative fund rises by $3.7 million to $17.2 million. Children and Families administration gets $41,950 more, reaching $69.87396 million. Its Office of Economic Opportunity gets $571,863 more, reaching $36.955582 million. These funding changes do not specify new household benefits, eligibility rules, or service changes.
More funding for long-term care services
Long-term care funding rises by about $53.79 million, from about $293.58 million to $347.38 million. Vermont can also carry forward already-obligated Medicaid home- and community-based service funds through fiscal year 2026. Transfers between specified budgets must leave total funding unchanged. The state must report on those transfers and spending in September 2026. These provisions do not set individual payments or cost reductions.
More funding for public health grants
The public health grants line rises by $100,000, from about $46.77 million to $46.87 million. The provision also reports a total public health appropriation of about $125.70 million. It does not identify changes to particular services or household access.
More funding for Vermont food shelves
The law provides $1 million for Vermont Foodbank network food shelves and pantries in fiscal year 2026. Aid can be food, grants to participating organizations, or both. The money must be spread fairly statewide. The law does not set individual benefit amounts or eligibility rules.
More mental health and recovery funding
Mental health funding rises about $2.10 million to $328.44 million; substance use funding rises about $1.03 million to $66.32 million. Recovery centers receive $800,000 from the Substance Misuse Prevention Special Fund for fiscal year 2026. Hub and Spoke expansion funding continues without its former two-year limit, and unspent funds remain available in later years. That expansion covers additional substances, mental health and pediatric screenings, and investments with community partners. These provisions do not specify individual payments or treatment-cost reductions.
New office addresses unfair health gaps
The law creates an Office of Health Equity within the Vermont Department of Health. It addresses avoidable, unfair health gaps linked to social, economic, and environmental factors. A full-time Executive Director reports to the Health Commissioner and serves outside the classified civil service. The law also provides $500,000 from the General Fund for community health equity grants in fiscal year 2025. The office provision does not state its funding or create individual benefit payments.
Public health funding supports chemical testing
The law provides $240,000 from the General Fund for Department of Health PCB chemical testing in fiscal year 2026. The provision funds testing, not payments to households.
State grant supports Mentor Vermont
The law provides a $200,000 grant to Mentor Vermont in fiscal year 2026. The money comes from the Substance Misuse Prevention Special Fund. The provision does not set individual eligibility or payment amounts.
Vermont seeks funding for rural doctors
Human Services must seek federal matching funds for the first year of the Maple Mountain Family Medicine Residency Program. The law provides $1.25 million in Global Commitment funding contingent on federal approval for that first-year match. If approval is denied, the agency must examine other matching options, including Global Commitment or medical training spending. The program aims to increase family medicine residents practicing in rural Vermont. The agency's report is due in July 2025.
Charging programs support apartments and workplaces
For fiscal year 2026, the law provides $1.4 million from the Transportation Fund for electric vehicle charging programs. The money goes to the Agency of Commerce and Community Development. Programs must improve access to level 1 or level 2 charging ports at workplaces or multiunit homes. The funding does not guarantee a charger for any individual.
Funding for statewide homelessness services
The Department for Children and Families directs about $29.34 million to community agencies addressing homelessness. Grants must preserve or increase services or resources available statewide. Grant decisions and administration require input from Vermont’s two federally recognized homelessness care networks. Agencies can combine these grants with federal Emergency Solutions Grants money.
Funding supports recovery homes for residents
The law provides $300,000 from the Substance Misuse Prevention Special Fund for recovery residences in fiscal year 2026. Residences must be certified by the Vermont Alliance for Recovery Residences. It also provides a $250,000 General Fund competitive grant to establish a women's recovery residence. That grant must be awarded by September 30, 2025, and meet the Vermont Recovery Housing Program Action Plan criteria.
Nearby shelters get state contract priority
The Department for Children and Families must favor shelter providers near the communities they serve when awarding contracts. This applies to contracts for emergency shelter operations and services. The priority supports nearby shelter services but does not guarantee anyone a placement.
Adult education providers receive specified funding
Annual provider payments equal 26% of the base education amount per student completing the program's diagnostic portions. The calculation uses the previous two completed fiscal years' average qualifying student count; funding is 40% Education Fund and 60% General Fund. Fiscal year 2026 replaces the usual allocation rule with named awards. Vermont Adult Learning gets $3.984607 million, and Central Vermont Adult Education gets $1.320874 million. The Tutorial Center gets $400,919, and Northeast Kingdom Learning Services gets $890,840.
Funding for students with special needs
For fiscal year 2026, the Agency of Education must use up to $5.2362 million for specified special education programs. The Secretary can distribute this money without the usual statutory restrictions named in the law. The agency may use another $2 million for a special education purpose not fully identified in the supplied text. Separate Global Commitment funding pays physician claims for medical-need reviews of Individualized Education Programs. That funding aims to improve care access for uninsured, underinsured, and Medicaid-covered people; its amount is not stated.
Funding supports online classes and school improvements
The law makes $2.4 million from the Education Fund available for Vermont Virtual High School. It also makes $400,000 available for secondary school reform grants. A separate amendment adds $75,000 to education services, raising that appropriation from about $351.72 million to about $351.79 million. The supplied text does not identify which services receive that increase. These provisions do not set direct family payments.
Funding supports students taking college courses early
The law increases Flexible Pathways grants by $202,424, from about $11.36 million to about $11.56 million. It makes $1.843 million available for dual enrollment, split equally between the Education Fund and General Fund. The Education Fund share is available despite the statutory limits named in the law. It also makes $4.2 million from the Education Fund available for Early College. These program allocations do not set individual student awards.
Local food funding for schools and childcare
The law provides $500,000 in General Fund money for local food grants in fiscal year 2026. The grants support buying and distributing local food to schools and registered or licensed child care programs. Funding runs through the Rozo McLaughlin Farm to School Grants Program.
More funding for adult learning programs
The law increases adult education and literacy grants by $303,637, from about $4.69 million to about $5 million. It also directs about $3.96 million in General Fund money to adult education and literacy providers. Another roughly $2.64 million from the Education Fund supports the Adult Education and Secondary Credential Program. These amounts appear in separate funding provisions and are not presented as one combined total. The law does not set payments for individual learners.
School aid supports English learner services
The law requires the designated school aid to support English Learner services. School districts receive the funding, not families directly. The supplied provision does not state the amount or change student eligibility.
Schools get money for toxic cleanup
The law provides $9.52 million from the Environmental Contingency Fund for school PCB testing and cleanup in fiscal year 2026. PCBs are polychlorinated biphenyls. Unspent funds carry forward each year until spent or returned.
Two school groups recover transportation funding
The law provides $68,407 from the Education Fund to Essex North Supervisory Union. Windham Southwest Supervisory Union receives $149,666 from the same fund. The grants cover fiscal year 2025 transportation funding shortfalls caused by data submission errors. The money goes to the school groups, not directly to families.
Higher ceiling for Vermont budget reserves
The law raises the General Fund Balance Reserve ceiling from 5% to 10% of the prior year’s General Fund appropriations. This gives the state more room to keep reserve money. The reserve cannot exceed 10% unless the Legislature authorizes a higher amount. The change does not create a household payment.
State funds child support computer planning
The Office of Child Support receives $340,000 in state funds and $660,000 in federal funds for computer system transition planning. The money remains available until spent, unless a later law changes that rule. This funds planning, not changes to child support payments, obligations, or eligibility.
State technology funding covers more systems
The law broadens uses of an existing $11.8 million fiscal year 2023 technology modernization appropriation. It can fund state employee management and core statewide financial accounting systems. It can also fund links with Labor and Transportation financial systems. This is existing funding, not a new household benefit.
Unspent state money remains available
Effective May 21, 2025, the law allows specified money left unspent on June 30, 2025, to carry forward. Executive Branch carryforward requires the Secretary of Administration’s approval. Eligible funds cover general spending, transportation, transportation infrastructure bonds, education, technology modernization, clean water, and agricultural water quality. Unspent Legislative and Judicial Branch General Fund appropriations also remain available. The provision states no dollar amounts.
Public employee pension systems receive funding
The law provides $15 million in General Fund pension funding for retired state employees in fiscal year 2026. State employee pension operations receive $2.247471 million, with another $1.091872 million for related pension investment work. Municipal employee pension operations receive $1.494924 million, with another $426,096 for related investment work. These funds support pension systems; they do not change benefit amounts or eligibility.
Towns get highway disaster recovery support
For fiscal year 2026, Vermont provides $1.15 million from the PILOT Special Fund for town highway recovery after nonfederal disasters. Any unused portion returns to that fund at year-end. Another $4 million in federal funds supports town highways affected by federal disasters. Municipal transportation mitigation assistance receives $6.893 million: $715,000 from the Transportation Fund, $4.75 million from special funds, and $1.428 million federally. These funds support towns and infrastructure, not direct household payments.
Towns receive road and highway funding
For fiscal year 2026, Vermont provides $30.418736 million from the Transportation Fund for town highway aid. The fund also provides $7.2 million for town highway structures and $8.6 million for class 2 town road grants. These appropriations support municipal transportation infrastructure rather than household payments. Separately, the law transfers $900,000 from the Transportation Fund to the Transportation Infrastructure Bond Fund for fiscal year 2025.
Water infrastructure gets state matching funds
For fiscal year 2026, the law provides $14.5 million in state matching funds for water infrastructure. The money supports the Drinking Water and Clean Water State Revolving Funds under the federal infrastructure law. It comes from the Cash Fund for Capital and Essential Investments. This funds infrastructure, not specified household payments.
Funding and payment authority support health providers
The law provides $10 million from the General Fund for Provider Stabilization Grants in fiscal year 2025. It also provides $11 million to Brattleboro Retreat to settle amounts under its alternative payment model. Some or all of that payment can serve as state matching funds for Global Commitment. The law authorizes Vermont to seek federal approval for a Hospital Directed Payment program; implementation requires that approval. In fiscal year 2026, while lawmakers are out of session, the Finance Commissioner can approve excess-receipt spending up to the federally approved amount.
More funding for Medicaid global payments
For fiscal year 2025, Medicaid Global Payment funding rises by $4.02 million to about $13.30 million. This includes about $5.59 million in state funds and $7.71 million in federal funds, not additional separate awards. Unused one-time state spending authority must be returned if the program ends or switches to payments calculated after services occur. If the Human Services Caseload Reserve remains unreplenished, remaining unallocated state funds must be reserved up to the appropriation amount. The law does not set a new benefit amount for patients.
More Medicaid providers can seek grants
All Vermont Medicaid-participating providers can apply for previously appropriated stabilization grants. Providers must show stabilization needs and a plan to become financially sustainable. Eligibility to apply does not guarantee an award. The provision does not state available funding or individual grant amounts.
Vermont can coordinate hospital payment timing
In fiscal year 2026, Human Services can manage the timing of federal fiscal year 2026 Disproportionate Share Hospital payments. Federal law must permit the timing changes. The agency can account for how Hospital Directed Payment funding affects hospitals' eligibility. This authority does not set a new payment amount for households.
Funding for housing and conservation projects
The Housing and Conservation Board receives $109.284304 million in fiscal year 2026 grants from state and federal funds. A $5 million General Fund appropriation supports affordable rentals, homeownership, manufactured housing, shelters, recovery residences, and housing for listed groups. Those groups include farm workers, refugees, and people eligible for Medicaid-funded home and community-based services. The law also provides $2.8 million to finish housing and conservation pilot projects identified in the 2022 law. Effective May 21, 2025, it provides $30 million in housing spending authority, paired with an equal recovery-fund authority reversion specified before December 31, 2024.
Funding helps stabilize municipal property lists
The law provides $1 million from the PILOT Special Fund for the Municipal Grand List Stabilization Program. Unspent money carries forward each fiscal year until spent or returned. The provision does not set a household payment or a specific property-tax reduction.
Local infrastructure funding supports housing development
The law provides $2.5 million in fiscal year 2026 for infrastructure supporting new or rehabilitated housing. Municipalities must own the infrastructure or lease it for at least 30 years. Vermont must have a grant agreement with the municipality before releasing funds.
Rent arrears funding and rental reimbursements
The law directs $2.5 million to the Department of Housing and Community Development for rent arrears assistance in fiscal year 2025. It also authorizes reimbursement of up to $14.3 million in earlier federal emergency rental-assistance spending. That reimbursement requires Joint Fiscal Committee approval under Grant Request #3034. Eligible state programs receive rental-assistance spending authority equal to transferred General Fund appropriations and must meet U.S. Treasury eligibility rules. These amounts are program funding, not promised household payments.
Towns recover taxes lost after flood buyouts
The Department of Taxes reimburses towns for lost property taxes after qualifying voluntary flood buyouts acquired on or after July 1, 2023. Properties must come through the state emergency management buyout program and remain undeveloped open space under a deed restriction or covenant. Reimbursement uses the property’s value when flood-damaged or identified as flood-prone, multiplied by applicable municipal tax rates. Payments cover the full calculated amount for five years, then may cover half for five more years; each property has a 10-year limit. Public Safety certifies eligible properties, with the first certification due September 1, 2025; payments come after other required grants from the PILOT Special Fund and shrink proportionately if funds fall short.
Child care fund gets deficit reserve
Vermont reserves $5 million within the Child Care Contribution Special Fund in fiscal year 2025. In fiscal year 2026, the reserve is released only to cover an undesignated fund deficit under standard accounting rules. Only the amount needed to offset that deficit can be released. The reserve does not change child care eligibility or create a household payment.
Funding protects college health worker training
For fiscal year 2026, Vermont State Colleges receive $1.797087 million for allied health education. This includes $297,087 from the General Fund and $1.5 million from Global Commitment. Global Commitment money supports dental hygiene, respiratory therapy, and nursing programs. If that funding is unavailable, the State must maintain total grant funding using the General Fund or another state source. The law does not set individual student awards or tuition changes.
Funding supports child care worker apprenticeships
The law provides $156,000 from the General Fund for the Child Care Apprenticeship Program in fiscal year 2026. The money supports the program, its participants, and its providers. This appropriation does not set individual eligibility, wages, or payments.
Funding supports new family doctor training
The law allocates $1.25 million from Global Commitment for the Maple Mountain Family Medicine Residency Program’s first implementation year. Spending depends on federal approval of the State’s request for matching funds. The money supports doctor training, not direct payments to patients.
Funding supports student aid and career programs
For fiscal year 2026, the Vermont Student Assistance Corporation receives about $27.08 million from the General Fund. That appropriation includes at least $1 million for Vermont Trades Scholarships and $25,000 for a student trust fund. Up to $300,000 can support a student goal-setting initiative serving one or more high schools. The law separately provides $250,000 for the Vermont Serve, Learn, and Earn Program in fiscal year 2026. These provisions do not state individual award amounts.
Funding supports teachers’ retirement and health benefits
The law adds $3.8 million to help fully fund teachers’ required retirement employer contributions for fiscal years 2025 and 2026. Unspent money carries forward for that purpose; a separate statutory appropriation is excluded from the funding-sufficiency calculation. The law sets retired teachers’ annual health plan contribution at $79.952589 million. The State provides $71.052589 million, and employer charges provide $8.9 million. Of the total, $24.712382 million covers normal costs and $55.240207 million covers accrued liabilities; individual benefit formulas are unchanged.
Grants support nursing assistant training and hiring
The law provides $500,000 from the General Fund for skilled nursing facility grants in fiscal year 2026. The grants aim to increase the number of employed licensed nursing assistants. Of that money, $150,000 funds grants of $30,000 or less, and $350,000 funds up to three grants. Facilities can use funds for training, paid internships, student support, and recruitment or retention bonuses. The law does not guarantee individual payments.
Student aid funds protected from overhead
At least 93% of the remaining Vermont Student Assistance Corporation appropriation must go to direct student aid after specified expenditures. Administrative spending cannot exceed 7% of the covered funds, and those funds cannot pay indirect costs. Federal money must follow federal grant requirements. The provision does not set individual student awards.
University research gets matching grant support
The law directs $380,362 from the University of Vermont appropriation to its Experimental Program to Stimulate Competitive Research. The money supplies state matching funds needed for available federal or private funding. It supports research funding rather than direct payments to students or households.
Business development centers receive state support
For fiscal year 2026, the Vermont Small Business Development Center receives a $150,000 General Fund grant. It helps Vermonters start, buy, and grow businesses. The law also directs $427,898 from the Vermont State Colleges appropriation to the Vermont Manufacturing Extension Center. That money meets state matching requirements for available federal or private funding.
Flood-hit towns get tax repayment options
Towns can apply to the tax commissioner for repayment of state education taxes waived on qualifying flood-damaged property. The federal disaster declaration must date from July 1, 2023, through December 31, 2024. Before November 15, 2025, towns must proportionally waive education and municipal taxes after applying any property tax credit. The main building must lose at least 50% of its value, be condemned, or be unusable or without utility access for at least 60 days. Towns can also receive repayment of reasonable, unexpected interest from borrowing to make education-tax payments after qualifying floods disrupted collections. Reimbursed interest expenses cannot exceed 8%; these payments go to towns, not directly to property owners.
More tax revenue for local planning
The law raises property transfer tax revenue kept in the Municipal and Regional Planning Fund from $7.772373 million to $9.052113 million. Revenue above that ceiling goes to the General Fund. The fund allocates $7.300358 million to regional planning commissions and $1.187721 million to municipalities. It allocates $564,034 to the Agency of Digital Services for the Vermont Center for Geographic Information. This changes where tax revenue goes, not the household tax rate.
State funds property tax administration work
The law provides $9,000 to the Attorney General and $70,000 to the Department of Taxes, plus remaining prior-transfer funds. This money supports hydroelectric property valuation appeals and utility property appraisal work. It also allocates up to $575,662 from the Current Use Administration Special Fund to run the Use Tax Reimbursement Program. That allocation cannot exceed available revenue. These funds support tax administration, not changes to household tax bills or reimbursement eligibility.
Higher surcharge on taxable property transfers
The clean water surcharge on taxable property transfers rises from 0.20% to 0.22% of taxable value. The law removes its sunset and the planned reduction to 0.04% by July 1, 2027. Surcharge revenue goes to the Vermont Housing and Conservation Trust Fund.
Joint federal filers must file jointly
Spouses filing a joint federal return must also file a joint Vermont return for the same tax year. This includes a surviving spouse filing jointly. The Vermont tax commissioner can approve a different filing status. The rule does not set a separate tax rate or payment amount.
Criminal justice services receive less funding
The law cuts criminal justice services funding by $681,203. The appropriation falls from about $7.54 million to $6.86 million. The provision does not identify specific service cuts.
Funding for New Americans study meetings
The law provides $6,200 from the General Fund in fiscal year 2026 for Office of New Americans Study Committee expenses. It pays committee members’ daily meeting payments and expense reimbursements. This funding does not create a household benefit or change service eligibility.
State staffing and services face limits
During fiscal year 2026, Vermont cannot increase its total authorized classified and exempt state positions. Temporary positions, approved limited-service positions, and positions authorized during the 2025 legislative session are excluded. Agency heads must limit staffing and services to funding in this law or other laws passed before June 30, 2025. Specific legislative directions can override that service restriction. The law does not identify particular household service cuts.
Land use board receives less funding
The Land Use Review Board receives $400,000 from the General Fund for fiscal year 2025. That is down from $1.3 million, a $900,000 reduction. The law does not specify changes to the board’s services.
Higher fees for prescribed product manufacturers
Prescribed-product manufacturers filing annual disclosures with spending above zero pay an annual fee of $765, up from $500. The Attorney General collects the fee, which is due by April 1 each year. The provision does not directly change household product prices or taxes.
Higher registration fees for paid fundraisers
Paid fundraisers pay $675 per calendar year of Vermont solicitation, up from $500. Payment is due at least 10 days before their first Vermont solicitation. Each solicitation notice costs $270, up from $200, due with the notice. For campaigns lasting more than 12 months, another $270 fee is due annually by the campaign anniversary.
Revenue drops trigger spending reduction plans
A revenue estimate drop of at least 1% triggers a state spending reduction plan. This applies to General Fund, Transportation Fund, or federal funds compared with the estimate supporting current-year appropriations. The Secretary of Administration prepares the plan for Joint Fiscal Committee review and approval. Appropriation cuts and fund transfers cannot exceed the revenue drop. The law does not identify which household services face cuts.
State digital services operating budget shrinks
The Agency of Digital Services operating budget falls by $786,000. Funding drops from about $62.55 million to $61.76 million. The law does not identify specific service cuts or household charges.
Transportation funds no longer support public safety
Transportation funds can no longer support the Department of Public Safety. Permitted uses remain transportation agency and board operations, transportation pay increases, capital facilities, debt service, and state-operated information centers. The law does not specify a resulting service cut.
Child and family service budgets shrink
Child development grant funding falls about $11.51 million, from $230.05 million to $218.54 million. Family services funding falls $429,703, from about $148.76 million to $148.33 million. Office of Child Support funding falls $95,866, from about $16.92 million to $16.82 million. These budget changes do not specify changes to family eligibility, benefits, child-support obligations, or services.
Health coverage administration receives less funding
The Department of Vermont Health Access administration budget falls by about $3.16 million. Its appropriation drops from about $182.21 million to $179.06 million. This provision does not specify changes to health coverage, eligibility, or household costs.
Income assistance programs receive less funding
Aid for aged, blind, and disabled people falls $118,754, from about $12.97 million to $12.85 million. General Assistance funding falls $351,627, from about $11.07 million to $10.72 million. Reach Up funding falls $499,995, from about $37.25 million to $36.75 million. These funding changes do not specify lower individual payments, changed eligibility, or reduced access.
Tobacco prevention fund loses revenue source
The Tobacco Trust Fund no longer receives unused, uncommitted Litigation Settlement Fund balances. It still receives legislative transfers and contributions from other sources. Annual appropriations cannot exceed 7% of the fund’s value at the end of the prior fiscal year. Spending requires a legislative appropriation. The law does not state the dollar loss or resulting changes to prevention and cessation services.
Emergency housing security spending is capped
Agencies can spend no more than $500,000 of the General Assistance Emergency Housing section’s appropriation on security costs. This limits agency spending, not households’ payment duties.
Housing revenue redirected to state accounts
The law moves housing trust property-transfer tax and surcharge receipts above stated thresholds to the General Fund. Separate provisions list thresholds of $36.96425 million and $28.23805 million; the supplied text does not identify their respective periods. The $2.5 million affordable-housing bond dedication is offset by a $1.5 million board appropriation reduction and $1 million from the surcharge. The fiscal year 2026 appropriation reduction is restored when the bond is retired. Related bond and tax provisions end July 1, 2039.
School payments and grant budgets shrink
Adjusted education payments to school districts fall $11 million, from about $1.893 billion to $1.882 billion. Grants for educating state-placed students fall $1 million, from $20 million to $19 million. Education nutrition grants fall $2.9 million, from $20.4 million to $17.5 million. These changes do not specify losses for individual districts, changes to student meals, or new household costs.
Vocational rehabilitation grants receive less funding
Vocational rehabilitation grant funding falls by $1 million. The appropriation drops from about $10.18 million to $9.18 million. The law does not identify which recipients or services are affected.
Workers lose a training funding source
The law repeals Vermont's Workforce Education and Training Fund. Workers and organizations lose access to funding through that state fund. The supplied provision does not identify a replacement or an effective date.
Technical schools use prior-year grant base
Fiscal year 2026 career technical center supplemental grants use the fiscal year 2025 base education amount. The supplied provision does not state that amount or resulting grant totals. It therefore does not establish whether affected centers receive more or less funding.
Emergency reserve access comes with limits
The Legislature can use up to 10% of the General Fund Balance Reserve for unforeseen or emergency needs. It can also use the reserve to offset an official General Fund revenue estimate drop of at least 2%. That drop is measured against the estimate used for the appropriations act or budget adjustment act. The law does not identify which programs receive this support.
Larger transfers into Vermont’s General Fund
For fiscal year 2025, the Cannabis Regulation Fund transfer to the General Fund rises from $12 million to $15.41708432 million. The estimated Unclaimed Property Fund transfer rises from $6.5 million to $12.262352 million. These transfers increase General Fund resources while reducing balances in the source funds. The unclaimed property transfer can use only unencumbered balances and cannot prevent the responsible agency from meeting its legal duties. The Finance and Management Commissioner must report the final transfer amount to the Joint Fiscal Committee at its July meeting.
Municipal facility payments and funding limits
The law directs $152,000 in supplemental facility payments to Newport and Springfield from the payments-in-lieu-of-taxes fund. The fund is limited to required payments under chapter 123, subchapters 4 and 4C, and added correctional facility payments. Montpelier payments are no longer listed as a separate permitted use. These changes do not establish a direct household tax change.
Planning funds face a revenue cap
The law caps specified property transfer tax deposits into the Municipal and Regional Planning and Resilience Fund at $10.000705 million. Regional planning commissions receive $7.740546 million, municipalities receive $1.260089 million, and geographic information work receives $1.00007 million. Excess receipts go to the General Fund. Commission and municipal payments must follow the distribution rules in 24 V.S.A. § 4306(b).
Reserve money released for transportation and environment
The law releases $12.5 million for Transportation and $14.5 million for Environmental Conservation, subject to their original reserved purposes. Fiscal year 2026 planning expects releases of $1.685385 million from budget stabilization and $2.721375 million from human services caseload reserves. It also expects $5.7 million to be set aside in the General Fund 27/53 Reserve. Fiscal year 2025 Transportation Fund returns reduce the appropriation total used to calculate the fiscal year 2026 stabilization reserve requirement.
State funds a technology service transition
The law moves $8 million from the fiscal year 2026 unallocated balance to the Communications and Information Technology Special Fund. The money must pay for changing billable state technology services from service-level agreements to shared core enterprise services. This adds dedicated transition funding while reducing money left unallocated. No direct household payment or service change is specified.
State funds retain more transferred revenue
For fiscal year 2025, the sports wagering transfer to the General Fund falls from $7 million to about $6.14 million. The liquor fund transfer falls from $21.1 million to about $9.54 million. Combined transfers from insurance, captive insurance, and securities regulatory funds fall from about $66.94 million to $65.06 million. Those regulatory transfers use balances not already committed to spending. More money stays in these funds, while less reaches the General Fund.
State shifts money among budget funds
For fiscal year 2025, the General Fund transfers $18.5 million to medical insurance and $3.135443 million to correctional industries. It also transfers $900,000 to Act 250 permits, $3 million to liability self-insurance, and $220,000 to emergency personnel survivor benefits. In the opposite direction, $2.59892175 million moves from the Workforce Education and Training Fund to the General Fund. The Traumatic Brain Injury Fund’s remaining year-end balance also moves to the General Fund. These transfers support some funds while reducing others; no household payment or eligibility change is specified.
Towns get equipment loans with limits
Municipal loans can fund motorized road equipment, heavy equipment, and authorized emergency vehicles. Purchases must cost at least $20,000 and last at least five years; loans cannot exceed 75% of price or $150,000, whichever is lower. Interest is up to 2% for one municipality and zero for joint purchases. The committee can waive either loan cap for specified destruction or unexpected equipment hardships when replacement creates undue financial hardship. Applications need committee approval and Treasurer-set repayment security; decisions must consider need, fair geographic distribution, and ability to repay.
Unused balances return to General Fund
Fiscal year 2025 returns to the General Fund include $2.18694033 million from Renter Rebates and $8 million from Labor. They also include $144,565.43 from Everyone Eats and balances from other listed accounts. Fiscal year 2026 returns include $2 million from AOA–VHFA and $6 million from bond redemption. Additional returns are $8,821.25 from pension consulting, $59,673.09 from the Tax Structure Commission, and $25,000 from research contracts. They include $7,155 from the JFO AAHC Task Force Consultant account, $21,125.50 from JFO studies, $39.10 from Security, and $0.99 from Capitol Police. Any uncommitted year-end fiscal year 2025 balance in the specified 2023 appropriation also returns and cannot carry forward. These returns do not establish changes to household eligibility or payments.
Hospitals pay larger health board shares
The State pays 40% of Green Mountain Care Board expenses under the revised formula. Hospitals pay 36%, up from 28.8%. Listed nonprofit health service corporations, health insurers, and health maintenance organizations pay 24%, up from 23.2%. Accountable care organizations are removed from the listed shares; specified assessment and expense exceptions still apply. The law does not set a household premium or medical bill increase.
Prevention funding changes and cannabis transfers
The law repeals the substance misuse prevention funding provision in 32 V.S.A. § 7909. After fiscal year 2025, it splits unused, uncommitted Cannabis Regulation Fund money above $4.035 million. The General Fund receives 70%, and the Substance Misuse Prevention Special Fund receives 30%. Fiscal year 2026 estimates are $8.9 million and $3.8 million, respectively. Actual transfers depend on the remaining balance; the repeal’s effect on services is not specified.
School balances return to Education Fund
The law returns listed fiscal year 2025 education account balances to the Education Fund. These include $13.68752841 million from State-Placed Students and $6.20147969 million from Universal School Meals. Other listed education account balances also return. The provision does not state changes to students’ eligibility or benefits.
State colleges must close recurring deficits
Vermont State Colleges must reduce their structural deficit by $5 million annually for three years, then $3.5 million. Required reductions total $18.5 million by the end of fiscal year 2026. The system must use recurring operating expense reductions and increased enrollment revenues, not one-time funds. Results must be reported each year during the Chancellor's budget presentation. The law does not specify tuition or service changes.
Current Use funding and transfer limits
The law allocates $591,137 from the Current Use Administration Special Fund to administer the Use Tax Reimbursement Program. Property transfer tax revenue above that allocation goes to the General Fund; allocations cannot exceed available revenue. A separate provision transfers Current Use Administration property transfer tax receipts above $575,662 to the General Fund. These funding rules do not themselves change household taxes or reimbursement eligibility.
Organizations keep April tax exemption rules
For Vermont tax year 2025, organizations’ tax-exempt status follows federal rules and interpretations in effect April 1, 2025. The state disregards later implementation or interpretation changes through December 31, 2025. This rule applies to organizations, not directly to household tax benefits.
School tax overpayments get district credits
For fiscal year 2025, Canaan Town School District gets a $29,224 credit against education spending. Northeast Kingdom Choice School District gets a $68,132 credit. These address fiscal year 2024 homestead education-tax overpayments caused by student-count errors. The law removes prior direct-transfer compensation rules for Bloomfield, Brunswick, East Haven, Granby, Guildhall, Kirby, Lemington, Maidstone, Norton, and Victory. These are district credits, not set payments to each homeowner.
Telephone companies move between tax systems
The telephone personal property tax ends July 1, 2026; its final installment is due July 25, 2026. That installment uses property value as of December 31, 2025. The alternative telephone gross revenues tax ends January 1, 2027; its final quarterly payment is due January 25, 2027. Affected companies owe Vermont income tax for tax years starting January 1, 2026, or later, without overlapping alternative-tax payments. Communications property tax rules apply to town tax lists lodged on or after April 1, 2026.
Vermont uses federal tax rules through 2024
Vermont uses federal income tax rules and the Internal Revenue Code as amended through December 31, 2024. It does not adopt federal income tax rates. This federal-law baseline stays in place until the Legislature changes it. These provisions do not identify a specific household tax increase or tax cut.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/15/2025
Which was agreed to on a Roll Call Passed -- Needed 68 of 135 to Pass -- Yeas = 132, Nays = 3
Yes: 132 • No: 3 • Other: 1
Senate vote • 5/1/2025
Roll Call, requested by Senator Beck, Failed -- Needed 23 of 30 to Pass -- Yeas = 13, Nays = 17
Yes: 13 • No: 17
Senate vote • 5/1/2025
Roll Call, requested by Senator Ingalls, Failed -- Needed 23 of 30 to Pass -- Yeas = 14, Nays = 16
Yes: 14 • No: 16
Senate vote • 5/1/2025
Passed on roll call, requested by Senator Ram Hinsdale, Passed -- Needed 15 of 30 to Pass -- Yeas = 20, Nays = 10
Yes: 20 • No: 10
House vote • 3/27/2025
Which was agreed to on a Roll Call Passed -- Needed 71 of 142 to Pass -- Yeas = 104, Nays = 38
Yes: 104 • No: 38 • Other: 1
Actions Timeline
House message: Governor approved bill on May 21, 2025
5/22/2025HouseSigned by Governor on May 21, 2025
5/21/2025HouseHouse message: House adopted Conference Committee report
5/16/2025HouseDelivered to Governor on May 15, 2025
5/15/2025HouseBill ordered delivered to the Governor forthwith per Joint Rule 15 as moved by Rep. McCoy of Poultney
5/15/2025HouseWhich was agreed to on a Roll Call Passed -- Needed 68 of 135 to Pass -- Yeas = 132, Nays = 3
5/15/2025HouseCommittee of Conference report adopted (House bill)
5/15/2025HouseRep. Scheu of Middlebury demanded yeas and nays
5/15/2025HouseAction Calendar: Report of Committee of Conference
5/15/2025HouseNotice Calendar: Report of Committee of Conference
5/14/2025HouseSenate Message: Report of Committee of Conference adopted
5/13/2025SenateRules suspended & messaged to House forthwith, on motion of Senator Baruth
5/13/2025SenateCommittee of Conference report adopted
5/13/2025SenateCommittee of Conference report submitted by Senator Perchlik for Committee, text
5/13/2025SenateRules suspended & taken up for immediate consideration, on motion of Senator Baruth
5/13/2025SenateCommittee of Conference report
5/13/2025SenateEntered on Notice Calendar
5/13/2025SenateSenate Message: Committee of Conference members appointed
5/2/2025SenateCommittee of Conference appointed: Senators Perchlik, Westman, and Lyons
5/2/2025SenateHouse message: House refused to concur in Senate proposal of amendment & requested Conference Committee; House Conference Committee members appointed
5/2/2025HouseRules suspended and bill messaged forthwith to the Senate as moved by Rep. Toof of St. Albans Town
5/2/2025HouseSpeaker appointed Reps. Scheu of Middlebury, Harrison of Chittenden, and Bluemle of Burlington as members of the Committee of Conference on the part of the House
5/2/2025HouseSenate proposal of amendment not concurred in and Committee of Conference requested upon motion of Rep. Scheu of Middlebury
5/2/2025HouseRules suspended and taken up for immediate consideration as moved by Rep. Toof of St. Albans Town
5/2/2025HouseNotice Calendar: Senate Proposal of Amendment
5/2/2025House
Bill Text
As Enacted (ACT 27)Opens in a new window
5/28/2025
As Passed by Both Chambers
5/15/2025
As Passed by Both Chambers (Unofficial)
5/15/2025
Senate Proposal of Amendment
5/2/2025
Senate Proposal of Amendment (Unofficial)
5/2/2025
As Passed by the House
3/31/2025
As Passed by the House (Unofficial)
3/31/2025
As Introduced
3/24/2025
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