An act relating to capital construction and State bonding budget adjustment
Sponsored By: Sponsor information unavailable
Signed by Governor
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Bill Overview
Analyzed Economic Effects
18 provisions identified: 11 benefits, 4 costs, 3 mixed.
Qualifying farms avoid municipal stormwater fees
Beginning June 17, 2026, towns cannot charge municipal stormwater or hard-surface fees on qualifying farm property. The property must be regulated under Required Agricultural Practices for farm waste or pollution from agricultural runoff. The exemption covers charges under the municipal stormwater provisions and other provisions of Vermont's municipal law. The law does not set a dollar amount for savings.
Historic sites receive more upkeep money
Fiscal year 2027 major maintenance funding for statewide historic sites rises from $550,000 to $750,000. Roadside historic marker funding rises from $25,000 to $45,000. These increases support historic places and signs, rather than direct household assistance.
Longer loans for nonprofit water systems
Beginning June 17, 2026, qualifying privately owned nonprofit community water systems can receive loans lasting up to 40 years. At least 80% of homes served must be continuously occupied by local residents; at least 80% of water must serve homes. Systems must meet disadvantaged-municipality income and annual household water-cost requirements. Eligible mobile home park systems do not have to meet the minimum annual household water-cost requirement. The Natural Resources Secretary sets administrative fees and interest rates, with rates between minus 3% and 3%.
More prison repairs and heating upgrades
Northeast Correctional Complex door-control funding rises from $1 million to $1.48 million in fiscal year 2026. Fiscal year 2027 funding rises from $2.6 million to $2.92 million. Prison heating and cooling planning, design, and construction funding rises from $1 million to $9.42625421 million in 2027. That year also provides $700,000 for Northern State's boiler and $598,850 for facilities addressing overcrowding among incarcerated women. Beginning June 17, 2026, the state must prioritize Chittenden Regional bathroom, shower, and floor repairs using specified existing funds. If those funds go to other prisons to address Chittenden overcrowding, commissioners must report their use at scheduled 2026 justice oversight meetings.
New grants support water and conservation
For fiscal year 2027, the Agriculture Agency receives $1.5 million for water quality grants and contracts. The law provides $1.5776 million for the Clean Water State Revolving Fund and $3.9224 million for municipal pollution-control grants. Forest access road water quality work receives $200,000. The Vermont Housing and Conservation Board receives $800,000 for agricultural water quality and $2 million for land conservation and water quality. Agencies must consult the State Treasurer to confirm that fiscal year 2026–2027 projects qualify for capital funding.
Newport Courthouse receives more project funding
The law provides $1.72081884 million in fiscal year 2027 for the Newport Courthouse project. Buildings and General Services administers the funding for the Judiciary. Together with $5.07591 million for fiscal year 2026, the project's two-year funding totals $6.79672884 million.
Veterans' Home gains upgrades and flexibility
The law expands a $1.5 million fiscal year 2026 American unit design and construction project to include sprinkler installation. Separate fiscal year 2026 funding provides $710,000 for an air handler and $340,000 for laundry expansion. Fiscal year 2027 provides $1.25 million for sewage-system and elevator upgrades. The Vermont Veterans' Home chief executive can move unused balances among the listed air-handler, laundry, sewage, and elevator appropriations. Transfers are limited to those unused project funds.
Little River park lease gains authorization
In fiscal year 2027, the parks commissioner can lease a building and its land at Little River State Park to Vermont Huts Association Ltd. The lease must last 20 years, with up to two additional 10-year renewals at the commissioner's discretion. It must specify compensation, allowed uses, insurance, liability protection, upkeep, termination, and dispute procedures. It must also require a contract to relocate and reconstruct Goodell House.
Cash funding supports Vermont capital projects
The law authorizes fiscal year 2027 spending from the Capital Infrastructure subaccount of the Cash Fund for Capital and Essential Investments. Building projects include $1.78117360 million for maintenance, $225,000 for security, and $3.6 million for the Asa Bloomer roof. Garage work receives $900,000 in Rutland and $3 million at Burlington's 32 Cherry Street. Prison projects receive $1.05 million for heating and cooling, $225,000 for security, and $2.7 million for Northeast door controls. Northern State receives $1 million for a boiler and $500,000 for sprinklers; facilities serving incarcerated women receive $500,000. A youth short-term stabilization facility receives $772,557.10, and the federal Drinking Water State Revolving Fund match receives $2.498 million. Waterbury Dam overruns receive $150,000, park infrastructure and three-acre-rule compliance receive $400,000, and dam safety planning receives $200,000. An Urban Search and Rescue facility receives $500,000; an Essex County Courthouse connector receives $500,000. White River Junction courthouse renovations receive $1.6 million, and Vermont Historical Society climate-control replacement receives $566,724. Corrections and Digital Services must work together on a $750,000 prison network-connectivity plan. Corrections and the State Chief Information Officer must report plans, priorities, and schedules at each scheduled 2026 justice oversight meeting. Children and Families and Buildings and General Services must report Green Mountain Youth Facility plans at the August, October, and December 2026 oversight meetings. Before design-document or lease approval, Buildings and General Services must submit the approved design to legislative committees, and Children and Families must submit a draft operating budget.
More maintenance and State House planning
Fiscal year 2027 statewide major maintenance rises by $183,413.18, from $8.5 million to $8.68341318 million. The law also provides $1.3 million to design State House entryway upgrades and second-floor exits. Design work includes a full parking plan and delivery-truck access, not construction. Buildings and General Services and the Sergeant at Arms must report design status and cost estimates to legislative committees by January 15, 2027. A legislative review group examines the entryway design, and its members are eligible for daily meeting pay.
Springfield can receive state prison land
Beginning June 17, 2026, the state can transfer about 22.93 acres at Southern State Correctional Facility to Springfield. The town can use it for municipal purposes, including industrial development, but the land cannot include brownfields. Required zoning or subdivision approvals must be obtained. Updates to the 1999 agreement must address road and utility-line upkeep and ways to reduce community impacts. If economic development has not begun by the end of March 2030, Springfield must consult the commissioner about alternative uses. The transfer authority ends July 1, 2030.
Less state money for stormwater compliance
The law cuts statewide three-acre parcel stormwater compliance funding in fiscal year 2026 from $1.5 million to $500,000. It also removes the $1.1 million appropriation for fiscal year 2027. These changes reduce state agency funding for compliance work. They do not themselves change property owners' compliance duties or impose a household charge.
Prior clean water project funding removed
The law removes a $10 million fiscal year 2027 appropriation for clean water implementation projects. That appropriation was for the Agency of Natural Resources through the Department of Environmental Conservation. The provision does not identify which projects lose funding or quantify effects on household water bills.
Prior prison sprinkler appropriation is removed
The law removes the prior $500,000 fiscal year 2027 appropriation for sprinkler upgrades at Northern State Correctional Facility in Newport. This repeal concerns that appropriation, not every funding source for the project. A separate cash-funded authorization in this law also lists $500,000 for sprinkler upgrades.
Less renovation money for state offices
The law cuts fiscal year 2027 funding for the 120 State Street steam-line interior renovation. Funding falls from $2 million to $1 million. This reduces the appropriation for a state office project, not a household payment.
Towns can charge local stormwater fees
Beginning June 17, 2026, towns can regulate stormwater and create local stormwater utilities, even where a regional utility exists. Towns can authorize charges based on an equivalent residential unit, a standard household measure, or a property's hard-surface area. This gives towns more ways to manage runoff, but property owners can face new charges. The law itself does not impose a fee.
State redirects funds and authorizes borrowing
The law authorizes $123.56462467 million in two-year bonding, with a first-year appropriation cap of $61.44976144 million. Reallocations, reversions, and transfers total $16.95283037 million: $9.81611867 million in bonded funds and $7.13671170 million in cash. Redirected capital balances include $43,190.08 from CJTC East Cottage, $1.62424112 million from 2019 projects, and $868,850 from women's correctional facilities. Another $500,000 moves from a prior Veterans' Home elevator appropriation and can only pay for authorized clean-water-related spending. Funds returned for authorized cash projects include $1.5 million for Veterans' Home Brandon and Cardinal unit design and $200,000 for the 111 State Street stack area. They also include $3.93671170 million from specified 2023 projects and $1.5 million for the 120 State Street renovation. These moves fund current projects while reducing balances available for their original purposes.
State property sale removes Montpelier's priority
Beginning June 17, 2026, Buildings and General Services can sell 110 State Street in Montpelier at fair market value. The city no longer has the right to receive the first purchase offer. The sale contract must include protections for the building's interior and exterior. Those protections must be developed with the Division for Historic Preservation and the Vermont Advisory Council on Historic Preservation.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
House message: Governor approved bill on June 17, 2026
5/29/2026HouseSigned by Governor on June 17, 2026
5/29/2026HouseDelivered to Governor on June 11, 2026
5/29/2026HouseHouse message: House adopted Conference Committee report
5/29/2026HouseCommittee of Conference report adopted (House bill)
5/28/2026HouseRules suspended and taken up for immediate consideration as moved by Rep. McCoy of Poultney
5/28/2026HouseNotice Calendar: Report of Committee of Conference
5/28/2026HouseSenate Message: Report of Committee of Conference adopted
5/27/2026SenateRules suspended & messaged to House forthwith, on motion of Senator Baruth
5/27/2026SenateCommittee of Conference report adopted
5/27/2026SenateCommittee of Conference report submitted by Senator Harrison for Committee, text
5/27/2026SenateCommittee of Conference report
5/27/2026SenateCommittee of Conference report
5/26/2026SenateEntered on Notice Calendar
5/26/2026SenateSenate Message: Committee of Conference members appointed
5/14/2026SenateCommittee of Conference appointed: Senators Harrison, Plunkett, and Benson
5/14/2026SenateHouse message: House refused to concur in Senate proposal of amendment & requested Conference Committee; House Conference Committee members appointed
5/14/2026HouseRules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney
5/13/2026HouseSpeaker appointed Reps. Emmons of Springfield, Morrissey of Bennington, and Minier of South Burlington as members of the Committee of Conference on the part of the House
5/13/2026HouseSenate proposal of amendment not concurred in and Committee of Conference requested upon motion of Rep. Emmons of Springfield
5/13/2026HouseAction Calendar: Senate Proposal of Amendment
5/13/2026HouseNotice Calendar: Senate Proposal of Amendment
5/12/2026HouseSenate Message: Passed in concurrence with proposal of amendment
5/8/2026SenatePassed in concurrence with proposal of amendment
5/7/2026SenateConsideration resumed
5/7/2026Senate
Bill Text
As Enacted (ACT 163)Opens in a new window
6/19/2026
As Passed by Both Chambers
6/5/2026
As Passed by Both Chambers (Unofficial)
6/5/2026
Senate Proposal of Amendment
5/8/2026
Senate Proposal of Amendment (Unofficial)
5/8/2026
As Passed by the House
4/13/2026
As Passed by the House (Unofficial)
4/13/2026
As Introduced
3/27/2026
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