VermontH.7902025-2026 SessionHouseWALLET

An act relating to fiscal year 2026 budget adjustments

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

44 provisions identified: 31 benefits, 6 costs, 7 mixed.

State funds can preserve rental vouchers

In fiscal years 2026 and 2027, the Emergency Board can transfer existing funds while the legislature is not in session. Funds can preserve Section 8 vouchers threatened by federal action, maintain housing payments, or prevent vouchers from being retired. Housing authorities need a majority vote of their commissioners and must submit financial-need reports by April 15, 2026. The Department for Children and Families must verify federal compliance and necessary expenses, then distribute money based on need. Preventing termination of a current participant’s assistance also requires prior written approval from the federal housing department.

More funding for Vermont Medicaid services

For fiscal year 2026, Vermont increases its main Global Commitment health grant by about $59.819 million, to $2.267 billion. The Medicaid program's Global Commitment grant rises by about $29.692 million, to $1.009 billion. State-only Medicaid grants rise by about $2.059 million, to $69.664 million. Medicaid grants outside the waiver rise by $558,177, to about $44.593 million. These budget changes support services but do not set new individual benefits, eligibility rules, or out-of-pocket costs.

Another year for Vermont equity leadership

The Office of Racial Equity receives $110,000 in General Fund support for fiscal year 2026. The money continues the Inclusion, Diversity, Equity, Action, Leadership Vermont program for one additional year. The law does not set individual payments or change eligibility.

Funding for Vermont community accountability courts

The Secretary of Administration's Office receives $500,000 to reimburse Community Accountability Court Project expenses requested by other state entities. For fiscal year 2026, the Chittenden County project receives General Fund support for its setup and operations. The Judiciary receives $139,443, and the Department of State's Attorneys and Sheriffs receives $36,848. These appropriations do not create household payments or duties.

More funding for Vermont forestry programs

For fiscal year 2026, Vermont forestry funding rises from about $13.56 million to $13.66 million. The $105,217 increase supports staffing and operating costs at the Department of Forests, Parks and Recreation. The provision does not specify a particular service change or household payment.

Funding for food shelves and pantries

The law provides $1 million from the General Fund for Vermont Foodbank partner food shelves and pantries. The aid can include food, subgrants, or both. Distribution must be equitable statewide. The law does not set household eligibility or individual benefit amounts.

Funding for health equity and outreach

The Vermont Department of Health receives $163,627 from the General Fund to continue work addressing health disparities. It also receives $167,000 for Bridges to Health in fiscal year 2026. These provisions fund programs rather than setting household payments or individual eligibility rules.

More funding for family protection services

For fiscal year 2026, family services grants rise by about $1.082 million, to $101.624 million. Secure residential treatment grants rise by $1.9 million, to about $5.377 million. The Department for Children and Families receives $150,000 to make the Child Abuse Hotline compatible with updated state server requirements. These changes fund services and hotline operations but do not create household payments or new eligibility rules.

More funding for General Assistance benefits

For fiscal year 2026, General Assistance grants increase by $258,846, to about $10.675 million. The money supports the Department for Children and Families' program. The appropriation does not change individual eligibility, payment amounts, or services.

More funding for long-term care providers

For fiscal year 2026, long-term care grants rise by about $28.647 million, to $375.505 million. The law provides about $14.197 million in Global Commitment funds for nursing home emergency financial relief. Beginning April 1, 2026, Global Commitment funds add $35,226 in payments to Area Agencies on Aging. They also add $267,888 in payments to Tier 1 Enhanced Residential Care facilities starting that date. These funds go to providers and agencies, not directly to residents, and do not set new household benefit amounts.

More funding for mental health and recovery

For fiscal year 2026, mental health grants rise by about $3.224 million, to $282.916 million. Six recovery centers harmed by earlier equal funding shares receive $420,000: $228,000 from the prevention special fund and $192,000 from the General Fund. Springfield receives $45,000; Journey to Recovery, $50,000; and Chittenden County, $70,000. Addison County receives $75,000; Bennington, $105,000; and Windham County, $75,000. The law does not specify changes to individual care, eligibility, or costs.

More funding for Vermont food assistance

The Vermont Foodbank's General Fund grant for Vermonters Feeding Vermonters rises from $500,000 to $885,000. That adds $385,000 for the food assistance program. The law does not set individual benefit amounts or household eligibility rules.

More support for public health services

For fiscal year 2026, public health grants rise by $45,000, to about $48.542 million. The Department of Health also provides $340,000 in General Fund grants for HIV and harm reduction services. Vermont CARES receives $165,000, AIDS Project of Southern Vermont receives $115,000, and HIV/HCV Resource Center receives $60,000. These provisions do not set household payments or new eligibility rules.

More support for residents with disabilities

For fiscal year 2026, advocacy and independent living grants rise by $216,483 to about $25.13 million. The law also gives the Vermont Center for Independent Living a $55,000 General Fund grant. That grant supports home-delivered meals for people with disabilities who are under 60. These provisions do not set individual cash payments or meal benefit amounts.

New payments for developmental disability providers

For fiscal year 2026, designated and specialized agencies receive monthly payments per member for home- and community-based developmental disability services. Payment calculations assume at least 65% service use. Payment reconciliation must follow disability payment-reform rules and the federal False Claims Act. The law provides $9.5 million in one-time Global Commitment funding for the first year. Providers must submit full fiscal data by April 1, 2026; a joint agency, legislative, and stakeholder meeting follows by April 15. A written progress report is due May 1, 2026. Agencies below 65% service use must submit financial stabilization plans by October 1, 2027. If prior funding cannot cover required state matching funds, the Finance Commissioner can release caseload reserves to Human Services.

One-time boost for medical transportation

For fiscal year 2026, Vermont provides a one-time payment increase for nonemergency medical transportation. Funding includes $329,520 from the General Fund and $470,480 in federal money through the Department of Vermont Health Access. The law also provides $800,000 in Global Commitment funds. It does not set individual payments or change who qualifies.

Slightly more funding for brain-injury services

For fiscal year 2026, traumatic brain injury home- and community-based waiver grants increase by $4,711. Total funding is about $7.545 million. The appropriation supports waiver services but does not change eligibility or set individual benefit amounts.

Funding for housing access and resilience

The Vermont Housing and Conservation Board receives $1 million from the General Fund. It supports the Land Access and Opportunity Board’s Homes for All Initiative and Community Resilience grants. The law does not set household award amounts or individual application rules.

More flexibility for women’s recovery housing

The law expands allowed uses of a $250,000 competitive grant for a new women’s recovery residence. Up to $50,000 can pay for activities normally barred by the Vermont Recovery Housing Program Action Plan. The residence must meet that plan’s criteria. The provision retains a grant award deadline of September 30, 2025.

Restored grants for homelessness service groups

The Office of Economic Opportunity distributes about $1.322 million to restore homelessness service partners to fiscal year 2025 funding levels. BROC Community Action receives $381,088; Champlain Valley Office of Economic Opportunity, $308,910; Southeastern Vermont Community Action, $184,783; and Northeast Kingdom Community Action, $160,000. Homeless Prevention Center receives $90,000; Springfield Supported Housing Program, $60,000; Upper Valley Haven, $50,000; and HOPE, $46,360. Good Samaritan Haven receives $20,000; Vermont Network Against Domestic and Sexual Violence, $10,000; Charter House Coalition and Groundworks Collaborative, $5,000 each; and NewStory Center, $1,000. The grants support homelessness prevention and response, not fixed household payments or new eligibility rules.

Funding for Vermont human services offices

For fiscal year 2026, the Agency of Human Services Secretary's Office receives $385,000 from the General Fund. The money pays for office setup work at the Waterbury State Office Complex and Pilgrim Place. It does not create household payments or change access to services.

More funding for economic opportunity grants

For fiscal year 2026, Office of Economic Opportunity grants rise from about $39.17 million to $41.02 million. That adds about $1.86 million. This provision does not name specific recipients or create direct household payments.

One-time aid for criminal records checks

The General Fund transfers about $1.06 million to the Criminal History Records Check Fund to reduce its deficit. The transfer is intended to be one-time. Public Safety must submit a sustainability plan or propose other funding for related salary and benefit costs. That submission is due with its fiscal year 2027 budget adjustment presentation.

Unspent state funding remains available later

Specified state appropriations left unspent on June 30, 2026, must carry forward and be designated for later spending. Executive Branch carryforwards require the Secretary of Administration's approval. Covered funds include General, Transportation, Transportation Infrastructure Bond, Education, Technology Modernization Special, Clean Water, and Agricultural Water Quality. Unspent Legislative and Judicial Branch General Fund appropriations also carry forward. The law does not specify a total amount or household payment.

Funding to move health coverage systems

The Department of Vermont Health Access receives about $2.73 million from the General Fund for fiscal year 2026. The money funds Vermont Health Connect’s move to a cloud-based computer system. This provision does not change coverage eligibility, premiums, or benefits.

State payment supports Brattleboro Retreat

The law provides $5.3 million from the General Fund and $160,000 in federal funds for Brattleboro Retreat. The payment settles amounts under an alternative provider payment model. Some or all can count as state matching funds for the Global Commitment health program. This provision does not set patient payments or change coverage.

Funding to value Vermont communications properties

The Department of Taxes receives $500,000 from the PILOT Special Fund to inventory communications properties and build a valuation model. The money remains available until spent or returned by an act of the General Assembly. This provision does not itself change property assessments or household tax bills.

More funding for land review operations

For fiscal year 2026, Land Use Review Board funding rises by $41,250 to about $5.58 million. The increase supports operating expenses through the General Fund. This provision does not change land-use rules or establish household benefits.

More funding for renter rebates

For fiscal year 2026, renter rebate funding rises from $9.5 million to $11 million. That adds $1.5 million statewide. This funding change does not change eligibility or set an individual renter’s rebate.

Education Fund gains access to reserves

The law releases $13 million previously reserved in Vermont's Education Fund. This makes the money available rather than keeping it reserved. The provision does not identify which services or households receive it.

More funding for teachers’ retirement contributions

The law adds $3 million from the General Fund for the teachers’ retirement system’s fiscal year 2026 employer contribution. It ensures 100% funding of the contribution calculated by retirement experts. The separate appropriation under 16 V.S.A. § 1944(c)(13) is excluded from that calculation. Funds carry forward until spent or returned by a later law. This provision does not change individual pension formulas.

Lower matching funds for mental health

Estimated state matching funds certified by local designated mental health and developmental service agencies fall by $19,482. The estimate drops from about $3.174 million to $3.154 million. It covers eligible mental health services under Global Commitment. The law does not specify effects on individual patients.

Less funding for school nutrition

For fiscal year 2026, Education nutrition grants fall from $18.5 million to $17.5 million. That reduces funding by $1 million. The law does not specify changes to student meals, benefits, or eligibility.

Less funding for age and disability aid

For fiscal year 2026, Aid to Aged, Blind, and Disabled grants fall by $193,464. Funding drops from about $10.42 million to $10.23 million. The law does not specify changes to individual payments, eligibility, or services.

Less funding for family support programs

For fiscal year 2026, child development grants fall by $435,988, from about $227.78 million to $227.34 million. Reach Up grants fall by about $2.23 million, from $36.53 million to $34.30 million. Both changes reduce funding for Department for Children and Families programs. These provisions do not specify changes to any family’s benefits, services, or eligibility.

Less funding for homeowner rebates

For fiscal year 2026, homeowner rebate funding falls from $19 million to $17.5 million. That is a $1.5 million cut statewide. This funding change does not change eligibility or set an individual homeowner’s rebate.

Less tax revenue for housing and planning

The housing trust fund’s property transfer tax revenue threshold falls from $36.96425 million to $36.47175 million; excess goes to the General Fund. The fiscal year 2026 housing board budget includes a $1.5 million bond-related reduction, restored when the bond is retired. Related bond tax and surcharge rules end July 1, 2039. Planning and resilience funding falls from about $10 million to $9.87 million, with excess transferred to the General Fund. Allocations are about $7.64 million for regional planning groups, $1.24 million for municipalities, and $987,265 for the state mapping center.

Disability providers gain funds and planning duties

For fiscal year 2026, developmental services grants rise by about $1.188 million, to $351.176 million. The law adds $9.5 million in one-time Global Commitment funding for the first year of home- and community-based payment reform. Agencies below 65% service use that need financial stabilization must submit plans by October 1, 2027. The Department of Disabilities, Aging, and Independent Living must review those plans and work with agencies toward stability. When existing appropriations cannot cover the payment adjustment's state match, the state must transfer the shortfall from its Human Services Caseload Reserve.

Cannabis reserves rise while surplus moves

After fiscal year 2025, the Cannabis Regulation Fund's transfer threshold rises from $4.035 million to $4.66515 million. Of the uncommitted, unspent balance above that threshold, 70% goes to the General Fund and 30% to substance misuse prevention. Estimated fiscal year 2026 transfers are about $9.183 million and $3.935 million, respectively. Actual amounts depend on the eligible year-end balance.

State fund balances shift toward general spending

Fiscal year 2026 General Fund transfer estimates are about $45.193 million from insurance regulation, $23.892 million from securities regulation, and $8.994 million from unclaimed property. These estimates do not replace actual year-end amounts. Sports wagering and liquor transfer estimates are about $6.679 million and $16.803 million; actual transfers cannot exceed profits after eliminating fund deficits. The law returns $7,000 from LEG-Basic Needs Budget Members, $65 from JFO-Renewable Energy Standard, $10,000 from JFO-Basic Needs Budget Assist, and $700,000 from AOE-License Data Management to the General Fund. It also returns $1,500.38 from Invest Substance Use Treat to the Tobacco Litigation Settlement Fund.

State reserves target funding gaps and relief

The law reserves the first $74.908097 million of covered year-end General Fund balances for the next fiscal year. Uses include federal funding shortfalls, property tax relief, and other public-interest needs; reserved money is automatically released July 1. An existing $50 million appropriation also supports Emergency Board transfers while the General Assembly is out of session. Those transfers address federal funding cuts or extraordinary state and municipal public safety costs caused by increased federal action in Vermont. The Legislature can designate other uses related to federal funding changes, and the $50 million carries forward until spent or returned by law.

Less support for captive insurance oversight

For fiscal year 2026, the estimated transfer to the Captive Insurance Regulatory and Supervision Fund falls to $187,946. The previous estimate was about $1.05 million. This leaves more money in the General Fund but provides less support to the insurance oversight fund. The provision does not specify household tax, payment, or eligibility changes.

Child care funds get new reserve rules

Each year, Taxes and the Joint Fiscal Office must agree on expected fourth-quarter Child Care Contribution receipts. Their estimate is due by the end of the new fiscal year's first week; Finance and Management reserves matching General Fund dollars before closeout. After closeout, that reserve is released: excess over actual receipts goes into a statutory reserve, and shortfalls come from the General Fund Balance Reserve. General Assembly appropriations are removed from the Child Care Contribution Special Fund's listed revenue sources, while transfers remain listed. These accounting rules do not change child care eligibility or benefit amounts.

Rural hospitals gain drug billing flexibility

Eligible rural hospitals can bill insurers above Vermont’s usual limits for prescription drugs given in outpatient or office settings. This includes independent Critical Access Hospitals not affiliated with other hospitals or networks. It also includes non-critical access hospitals in the federal Rural Community Hospital Demonstration program. The Green Mountain Care Board can adjust eligible hospital budgets to reflect the exemption. The law expands hospital reimbursement options and insurer claim amounts, but does not set patient bills or premium changes.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 133 • No: 0

House vote • 1/30/2026

Which was agreed to on a Roll Call Passed -- Needed 67 of 133 to Pass -- Yeas = 133, Nays = 0

Yes: 133 • No: 0 • Other: 1

Actions Timeline

  1. House message: Governor approved bill on March 5, 2026

    3/25/2026House
  2. Signed by Governor on March 5, 2026

    3/10/2026House
  3. Delivered to Governor on February 27, 2027

    2/27/2026House
  4. House message: House adopted Conference Committee report

    2/27/2026House
  5. Committee of Conference report adopted (House bill)

    2/26/2026House
  6. Action Calendar: Report of Committee of Conference

    2/26/2026House
  7. Notice Calendar: Report of Committee of Conference

    2/25/2026House
  8. Senate Message: Report of Committee of Conference adopted

    2/24/2026Senate
  9. Rules suspended & messaged to House forthwith, on motion of Senator Baruth

    2/24/2026Senate
  10. Committee of Conference report adopted

    2/24/2026Senate
  11. Committee of Conference report submitted by Senator Perchlik for Committee, text

    2/24/2026Senate
  12. Rules suspended & taken up for immediate consideration, on motion of Senator Baruth

    2/24/2026Senate
  13. Committee of Conference report

    2/24/2026Senate
  14. Entered on Notice Calendar

    2/24/2026Senate
  15. Senate Message: Committee of Conference members appointed

    2/19/2026Senate
  16. Committee of Conference appointed: Senators Perchlik, Lyons, and Westman

    2/19/2026Senate
  17. House message: House refused to concur in Senate proposal of amendment & requested Conference Committee; House Conference Committee members appointed

    2/19/2026House
  18. Rules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney

    2/18/2026House
  19. Speaker appointed Reps. Scheu of Middlebury, Feltus of Lyndon, and Bluemle of Burlington as members of the Committee of Conference on the part of the House

    2/18/2026House
  20. Senate proposal of amendment not concurred in and Committee of Conference requested upon motion of Rep. Scheu of Middlebury

    2/18/2026House
  21. Rules suspended and taken up for immediate consideration as moved by Rep. McCoy of Poultney

    2/18/2026House
  22. Notice Calendar: Senate Proposal of Amendment

    2/18/2026House
  23. Senate Message: Passed in concurrence with proposal of amendment

    2/17/2026Senate
  24. Rules suspended & messaged to House forthwith, on motion of Senator Baruth

    2/17/2026Senate
  25. Read 3rd time & passed in concurrence with proposal of amendment

    2/17/2026Senate

Bill Text

  • As Enacted (ACT 74)Opens in a new window

    3/9/2026

  • As Passed by Both Chambers

    2/27/2026

  • As Passed by Both Chambers (Unofficial)

    2/27/2026

  • Senate Proposal of Amendment

    2/18/2026

  • Senate Proposal of Amendment (Unofficial)

    2/18/2026

  • As Passed by the House

    2/3/2026

  • As Passed by the House (Unofficial)

    2/3/2026

  • As Introduced

    1/26/2026

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