It was a busy week here at Campaign for Vermont. We testified in two different legislative committees this week and interviewed on a popular NEK TV show. Our hard work is paying off, we are getting positive indicators from legislators on multiple fronts!

This week, Vermont's legislative focus was largely on housing, education, and health care. The Senate Economic Development Committee advanced a task force proposal to inventory business resources and tackle gaps in access to capital, evolving from last week's broader housing finance pilot programs toward a comprehensive and inclusive economic ecosystem. The task force would include stakeholders like the Vermont Futures Project, the Vermont Small Business Development Center, and Professionals of Color, signaling an emerging pattern of nonpartisan collaboration to address rural-urban economic divides.

This week in Montpelier, education governance reform took center stage, with Act 73 discussions evolving from high-level overviews last week to concrete proposals on district consolidation, shared services, and regional structures. This signals a shift toward mandatory regionalized service (or consolidation) to address equity and costs, though voluntary options and rural safeguards remain hotly debated. We weighed in early in the week with the letter to the House Education Committee, urging them to challenge assumptions similar to those that derailed Act 46 (the previous consolidation effort). We followed later in the week with testimony in the Senate Finance Committee about our report identifying $300 million in potential savings by consolidating Supervisory Unions (instead of districts) and taking advantage of shared services.

This week lawmakers delved deeply into education funding and reform, reflecting ongoing efforts to build a more equitable and sustainable system amid demographic challenges and a persistent spending crisis.

Here it is... the first legislative update of the year!

Lawmakers dusted off major 2025 reforms, such as last year’s landmark economic and workforce bill, S.122, which continues to steer targeted grants and training dollars to small businesses and high-demand fields, positioning Vermont to compete for workers and employers in a tight regional market. Legislators also began early discussions around how the new, long‑term CHIP infrastructure and housing finance program can be deployed on the ground. The program has the potential to channel up to $200 million per year into local infrastructure that supports new housing and grows the tax base.

The legislature has gone home after passing a historic education reform bill. At the end of the day, most of the drama played out in conference committee, but the floor debates still featured impassioned pleas from supporters and opponents alike. Despite attempts by progressive legislators in both chambers to reject the conference committee compromise, the education reform bill passed handedly in the House and eked out passage in the Senate.

It is clear that the House does not want voters involved in setting school budgets. It has always been sort of implicit in this bill, but House members said it explicitly in debates this week: they do not envision a future system where local voters weigh in on their school budgets in any meaningful way.

This week's legislative update isn't much of an actual update. That's because the conference committee charged with finding a path forward on education reform (H.454) did not meet at all this week. And, yes, the Legislature went home in order give this same committee time to work out a compromise...

The Legislature worked late last night, finally concluding that an education reform deal was out of reach. They are coming back in a couple weeks to (hopefully) finish the job.

The most significant event in Montpelier this week is the one that almost didn't happen... Sensing that the education reform bill (H.454) was going to have some challenges on the Senate floor, we issued an action alert on Monday. Those concerns turned out to be well-founded when Senate leadership announced on Tuesday that they were pulling the bill back from the floor.