Vermont Business Magazine Today, Treasurer Pieciak’s Task Force on the Federal Transition released a final report with recommended actions to strengthen Vermont’s economy and the state’s fiscal stability in response to federal policy changes and reduced federal funding.
The report recommends a mix of government and non-government actions that include creating a State Disaster Recovery Reserve, establishing a public-private Economic Early Warning Task Force, and convening nonprofit leaders to coordinate resources and strengthen services.
The unifying theme across all recommendations is a need for preparation across State government, including proactive organizing with community, business, and nonprofit leaders, to mitigate the long-term impact of any changes coming out of Washington affecting Vermont’s economy and the cost of living.
“Vermonters are already feeling the impact of the MAGA agenda,” said Treasurer Mike Pieciak. “Inflation is rising, businesses are suffering from tariffs, and critical services are being cut. We need to work together to protect our state in this moment.”
Vermont is especially vulnerable to policy shifts at the federal level. On a per capita basis, Vermont receives about 36% more federal funding than the average U.S. state, accounting for roughly 35% of its state budget. From 2011 to 2024, Vermont was the fourth highest recipient of FEMA funding per capita among all U.S. states, having experienced frequent flooding and natural disasters.
Changes to immigration policy also pose risks to Vermont’s already strained labor market, especially in important sectors like housing construction, agriculture, and hospitality. Declining Canadian visitors as a result of tariffs and political tensions also threaten the state’s $4 billion tourism industry.
Border crossings of private vehicles crossing from Canada into Vermont were down about 8% year-over-year in February, down 30% in March and April, and down 38% percent in May.
Treasurer Pieciak convened the Task Force on the Federal Transition to assess the impact of the Trump administration’s policies on Vermont’s economy, workforce, and fiscal stability. The Task Force was co-chaired by Treasurer Pieciak and Sue Minter, former Executive Director of Capstone Community Action, and included members from a wide range of fields, including rural healthcare, legal services, economic development, municipal government, federal grant engagement, social services, the local business community, and more.
"The Task Force is grateful for the input from hundreds of people across the state about the essential roles the federal government plays in Vermont's economy," said Sue Minter. "Given the pending threats to our state's fiscal stability, it is critical to prepare now for a future with less federal funding in order to provide the best possible outcome for Vermonters."
Convening regularly since before Inauguration Day, Task Force members heard from local and national experts, including representatives from Common Good Vermont, former members of the U.S. Export-Import Bank board, and the State’s Medicaid Director.
The Task Force also led a statewide public engagement effort to share information and hear directly from Vermonters. The group hosted a webinar to help Vermont employers know what to do if ICE visits their workplace—a discussion that drew over 1,000 registrants.
Another Task Force webinar helped employers navigate economic uncertainty from tariffs, funding freezes, and reduced Canadian tourism. The Task Force and the Treasurer’s Office also held in-person town halls in Brattleboro and South Burlington, with both events reaching capacity.
While the Task Force’s work concluded before the passage of the President’s domestic policy bill, Treasurer Pieciak emphasized that cuts and new requirements to critical programs like Medicaid and SNAP make the Task Force’s recommendations even more important.
“The Trump administration’s cuts to Medicaid and SNAP will rob thousands of their healthcare and take food out of the mouths of children across the state,” continued Pieciak. “The federal government is turning its back on working people, Vermont cannot afford to do the same. I will continue to work tirelessly to make life more affordable for Vermonters and protect them from Donald Trump.”
While the Task Force on the Federal Transition is completed, the report emphasizes that the state’s work is just beginning, warning that Vermont remains vulnerable to federal policy shifts, citing the state's heavy reliance on federal funding, a tight labor market, frequent natural disasters, and close trade ties with Canada. The report calls for sustained attention and long-term planning to prepare for and respond to future disruptions.
Read the Task Force’s final report here.
7.17.2025. Montpelier, VT – Treasurer
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