VermontH.9382025-2026 SessionHouseWALLET

An act relating to establishing the Vermont Homelessness Response Continuum

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 5 benefits, 0 costs, 8 mixed.

Priority housing help for vulnerable households

Within available funding, Vermont must prioritize eligible households facing homelessness with members age 65 or older, disabilities, children, or pregnancy. Priority also covers domestic or sexual violence, stalking, human trafficking, dangerous or life-threatening conditions, and qualifying evictions beyond household control. Beginning July 1, 2026, the Department must contract with a statewide organization for domestic and sexual violence shelter and support. If that organization cannot deliver services, the Department must arrange another provider to prevent gaps.

Emergency hotel housing faces room caps

Hotels remain an emergency option until enough affordable housing or shelter exists, when earlier service levels cannot meet household needs. Placements depend on room capacity, staffing, and geographic access. With appropriated funds, program use is capped at 700 rooms nightly April 1–November 30 and 1,000 December 1–March 31. Rooms for people served under 33 V.S.A. § 602 do not count toward these caps. In fiscal year 2027, state payments cannot exceed either the lowest advertised rate or $80 per room daily. Household size and composition can justify multiple rooms; these payment caps are not household charges. The state must arrange room blocks and support services, avoid night-by-night placements, and ensure lodging meets health and fire-safety rules.

Housing termination rules include appeal protections

Knowingly false, misleading, or incomplete eligibility information can end services within 30 days after written notice. Applicants must receive fraud-penalty notices, and suspected fraud can be referred for investigation while a hearing is pending. Repeated refusal of suitable placements can also end services, after suitability assessments and reasonable accommodations are documented. Dangerous criminal activity permits immediate termination; good-faith errors that do not materially affect eligibility are protected if corrected promptly after notice. Written notices must explain adverse decisions, their effective dates, and appeal rights. Households have 60 days to request a Human Services Board hearing. Existing services generally continue with requests within 14 days, unless waived or continuation threatens others' safety.

Long-term rental help with support services

Agencies or community partners must offer eligible program households long-term rental help with voluntary, flexible support services. Help can continue as long as the household's plan shows it is needed. Households must take part in case management and housing-stability planning to the extent of their ability. Medicaid can fund services only when both the household and services qualify. Emergency housing does not replace recovery housing, disability supports, older adults' home care, post-custody transitional housing, or mental-health residences.

New homelessness help with participation rules

Beginning July 1, 2026, Vermont creates a statewide program for households facing homelessness or its imminent risk. Households must be physically in Vermont and show intent to stay through a state-recognized housing, employment, or other plan. Homelessness includes lacking adequate shelter, facing its loss, or fleeing violence; at-risk households lack resources to avoid homelessness. Households must follow program rules and agree to a coordinated entry assessment and case management unless exempt. Services depend on funding, and assigned case managers help connect households with housing, benefits, health care, and jobs. Households can request a particular manager or a change, but approval is not guaranteed.

Temporary housing limits allow some extensions

Level 1 temporary housing is limited to 30 days per rolling 12 months; temporary rental assistance is excluded. Shelter maximum stays are set by rules or shelter standards, with low-barrier residents moving onward as soon as feasible. Hotel stays April 1–November 30 are limited to 70 days within 12 months starting on the household's application date. Continuous cold-weather hotel services December 1–March 31 do not count toward that limit. During fiscal year 2027, prior fiscal year 2026 hotel users cannot reset their limit before their application's 12-month anniversary. Rule-based extensions can address housing or treatment waits, medical necessity, no reasonable accessible alternative, or imminent health or safety risks.

Temporary rental help leaves some rent

Beginning July 1, 2026, Vermont's Rental Assistance Bridge Program helps eligible households access permanent housing without relevant federal rental assistance. Payments go directly to landlords, cannot cover full rent, and do not provide a permanent voucher. Priority goes to households leaving homelessness and current HOME Program recipients with less than 24 months of rental assistance. Other eligible households are not excluded; the Housing Authority and state agencies set eligibility and assistance length. Their program consolidation, cost analysis, and implementation proposals are due January 15, 2027.

Cold-weather shelter without case management requirements

State and community partners must manage low-barrier overnight shelters when weather warrants, with equitable access in high-unsheltered-homelessness communities. These time-limited shelters require neither coordinated entry assessment nor case management and have minimal reporting requirements. Eligible municipalities in high-unsheltered-homelessness areas receive grants after applying with estimated costs and other funding sources. Their grant-funded activities must include basic life-sustaining shelter when the National Weather Service declares a cold weather advisory. Municipal cold-weather shelters also cannot require coordinated entry assessments or case management.

Disability housing protections and verification rules

The program must provide accessible placements, effective communication, and reasonable changes to rules and case management for disabled household members. Disability can be documented by a Vermont-licensed or certified provider or a recognized state or federal program. When other records are not reasonably available, households can use self-attestation, subject to verification within 30 days. Disability is verified at application and annually during services, but lifelong disabilities do not require redetermination.

Housing assessments and tailored shelter options

Every household requesting homelessness help must receive a brief assessment to find safe alternatives and immediate housing solutions. Regional partners provide prevention help, with flexible funds and disability accommodations. When funding allows, agencies must assess shelter needs and develop structured, low-barrier, and specialized shelters. Placement offers depend on space, staff, and geographic access; structured shelter is preferred when prevention cannot meet household needs. Low-barrier shelter serves households whose needs earlier levels cannot meet; specialized shelters add substance use or health services. Shelter agreements last at least two years, and shelters must meet disability, fire, and building standards. Households must join required shelter services only as much as they are able.

Vermont funds shelters and rental assistance

The law provides about $82.63 million for fiscal year 2027 homelessness services, using state, federal, and Global Commitment funds. Allocations include about $39.28 million for Housing Opportunity Grant Program operations and $23.37 million for hotel housing. Shelter development gets $4.4 million, permanent and family supportive housing $4.2 million, rental assistance $3 million, and case management $2.4 million. Cold-weather shelters get $1.5 million; municipal grants and the Community Resource Center each get $500,000. Staffing, grants, and contracts receive about $3.16 million, with $314,618 for other federal expenses. All program funding opportunities are open to eligible entities, including organizations not previously funded. Unspent fiscal year 2027 funds carry forward for their original purposes; unspent fiscal year 2026 emergency housing and housing-grant funds support the Continuum. Spending must be posted monthly, with quarterly reports due October 1, 2026, January 1, 2027, and April 1, 2027.

Vermont phases in new homelessness services

Most sections begin July 1, 2026; agencies must deliver as much of the program as possible during fiscal year 2027. They must build capacity for full implementation in fiscal year 2028. Interim rulemaking authority starts on passage; applicable General Assistance rules govern July 1–August 31, 2026, before September 1 emergency rules. An implementation report and draft permanent rules are due February 15, 2027, with permanent rules targeted for October 1, 2027. Shelter payment proposals include a base rate and possible supplements, with reports due April 1 and November 1, 2027. Annual budget reports must cover outcomes, stays, hotel use and denials, costs, and capacity needs, replacing the prior emergency-housing annual report.

Vermont unifies its homelessness service network

Vermont's Office of Economic Opportunity must create one statewide Continuum of Care by October 1, 2028. It must work with the Chittenden County Homeless Alliance, Balance of State Continuum of Care, and federal housing officials. A merger progress report is due January 15, 2028. Beginning October 1, 2028, covered state agreements require partners, as appropriate, to join housing coalitions and coordinate assessments and housing plans. Partners must track outcomes such as successful diversion, time to housing, and housing retention.

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: 4

House vote • 3/27/2026

Which was agreed to on a Roll Call Passed -- Needed 69 of 137 to Pass -- Yeas = 133, Nays = 4

Yes: 133 • No: 4 • Other: 1

Actions Timeline

  1. House message: Governor approved bill on June 16, 2026

    5/29/2026House
  2. Signed by Governor on June 16, 2026

    5/29/2026House
  3. Delivered to Governor on June 10, 2026

    5/29/2026House
  4. House message: House concurred in Senate proposal of amendment

    5/26/2026House
  5. Senate proposal of amendment concurred in

    5/21/2026House
  6. Rules suspended and taken up for immediate consideration, pending entry on Notice Calendar, as moved by Rep. McCoy of Poultney

    5/21/2026House
  7. Senate Message: Passed in concurrence with proposal of amendment

    5/21/2026Senate
  8. Rules suspended & messaged to House forthwith, on motion of Senator Baruth

    5/21/2026Senate
  9. Read 3rd time & passed in concurrence with proposal of amendment

    5/21/2026Senate
  10. New Business/Third Reading

    5/21/2026Senate
  11. 3rd reading ordered

    5/20/2026Senate
  12. Proposal of amendment by Committee on Health and Welfare, as amended, agreed to

    5/20/2026Senate
  13. Proposal of amendment by Committee on Health and Welfare amended as recommended by Committee on Appropriations

    5/20/2026Senate
  14. Reported favorably by Senator Lyons for Committee on Appropriations with proposal of amendment

    5/20/2026Senate
  15. Read 2nd time, reported favorably with proposal of amendment by Senator Lyons for Committee on Health and Welfare

    5/20/2026Senate
  16. Favorable report with proposal of amendment by Committee on Appropriations

    5/20/2026Senate
  17. Favorable report with proposal of amendment by Committee on Health and Welfare

    5/20/2026Senate
  18. Unfinished Business/Second Reading

    5/20/2026Senate
  19. Favorable report with proposal of amendment by Committee on Appropriations

    5/19/2026Senate
  20. Favorable report with proposal of amendment by Committee on Health and Welfare

    5/19/2026Senate
  21. New Business/Second Reading

    5/19/2026Senate
  22. Favorable report with proposal of amendment by Committee on Appropriations

    5/15/2026Senate
  23. Favorable report with proposal of amendment by Committee on Health and Welfare

    5/15/2026Senate
  24. Second Reading

    5/15/2026Senate
  25. Entered on Notice Calendar

    5/15/2026Senate

Bill Text

  • As Enacted (ACT 143)Opens in a new window

    6/18/2026

  • As Passed by Both Chambers

    6/3/2026

  • As Passed by Both Chambers (Unofficial)

    6/3/2026

  • Senate Proposal of Amendment (Unofficial)

    6/3/2026

  • Senate Proposal of Amendment

    5/26/2026

  • As Passed by the House

    4/2/2026

  • As Passed by the House (Unofficial)

    4/2/2026

  • As Introduced

    3/16/2026

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