In an unprecedented year, state action is more urgent than ever
Vermont Business Magazine Federal actions have resulted in hundreds of millions of dollars in lost support to individuals and the state when Vermonters are struggling to meet their basic needs.
The State of Working Vermont 2025, released today by the Montpelier-based nonpartisan nonprofit Public Assets Institute, analyzes U.S. Census and other data including costs, income, and wages in Vermont. It looks at how residents are doing and pinpoints the areas where the state can act to protect Vermonters’ wellbeing and economic security.
Vermonters continued to lose ground in making ends meet.
- Half of single adult Vermonters and a third of families with kids do not have enough income to meet basic needs.
- Two people earning minimum wage in Vermont will not be able to afford a standard two-bedroom apartment in 2026—and that shortfall between their rent and their earnings will be more than $25,000 annually, or $6 more income hourly per earner.
Federal funding cuts further threaten the safety and security of tens of thousands of Vermonters.
- More than 170,000 Vermonters get healthcare through Medicaid. Over 10 percent of those may lose coverage due to federal cuts.
- Tightened requirements and cuts to federal housing assistance and the elimination of access to housing vouchers for 131 Vermont households in 2025 undermine Vermonters’ access to safe, secure, affordable shelter.
Vermont can leverage federal tax cuts for corporations and the wealthiest to raise revenue for much needed public services and programs.
- Federal cuts will provide over $700 million in tax savings yearly to the richest 20 percent of Vermonters. The top 1 percent will save an annual average of nearly $60,000, twice the earnings of a Vermonter working full time for minimum wage.
- Even before these latest tax cuts, income inequality was growing in Vermont. The top 10 percent of tax filers receive a much bigger share of income in the state than they did 50 years ago. That leaves a smaller share for the other 90 percent.
“When Washington withheld critical food benefits during the shutdown this fall, state leaders stepped in to ensure recipients would not go hungry. Vermont must respond to our other challenges with even more collective action and commitment,” said Public Assets Executive Director Stephanie Yu.
“Federal actions and policies are making Vermont’s problems harder to solve. But they’re also providing the opportunity to take matters into our own hands by redirecting resources from tax cuts for the wealthy to investments that benefit us all.”
The State of Working Vermont chartbook can be viewed or downloaded at publicassets.org
Public Assets Institute is a nonprofit, nonpartisan organization in Montpelier that promotes sound state budget, tax, and economic policies that benefit all Vermonters. More information at www.publicassets.org
Public Assets Institute. Montpelier publicassets.org
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