Vermont Business Magazine The Vermont House of Representatives passed both the Fiscal Year 2026 state budget and tax reduction legislation on a strong tri-partisan vote. Both bills reflect months of work, deep collaboration across parties, and thoughtful input from Vermonters. The vote on the budget was 103-38. This would afford an override if the Governor Scott were to veto it. However, this is considered unlikely. The budget passed out of the Appropriations Committee in a unanimous vote.
“These bills meet the moment,” said House Speaker Jill Krowinski. “They are shaped by compromise, shared priorities, and a deep commitment to serving Vermonters where they are — in their schools, their homes, and their communities. It’s proof that when we work together, we can deliver a budget that is both responsible and deeply responsive to the needs of our state.”
The FY26 budget includes major investments in housing, health care, education, and workforce, while maintaining fiscal discipline and fully funding pension obligations and reserves.
Highlights include:
- $36.9 million to fully fund the Vermont Housing and Conservation Board
- $77.2 million transfer to the Education Fund to help stabilize property tax rates
- Increases for mental health, child care, and community-based health care providers
- Funding for flood recovery, food distribution, and cybersecurity infrastructure
- Strategic one-time investments to support affordability, resilience, and equity
The tax reduction bill highlights include:
- Fully funds education system ensuring our children and educators have the access to the resources they need
- Lowers the projected average property tax increase from 5.9% to 1.1%
- Sets up the legislature and administration to make the necessary education transformation changes currently being discussed
“Our committee heard from Vermonters from across the state and the budget addresses key priorities such as housing and the fragile healthcare system, while attending to the many various needs of Vermonters and Vermont businesses,” said Representative Robin Scheu, Chair of the House Committee on Appropriations. “This year’s budget represents a modest increase of 3.7% over last year's budget. The budget makes critical investments in our communities and keeps our reserves at a healthy level to help us respond to potential impacts that come out of Congress.”
“The tax reduction legislation lowers and stabilizes property taxes for Vermonters,” said Representative Emilie Kornheiser, Chair of the House Committee on Ways and Means. “The bill supports our schools, kids, and teachers, while putting us on a path to take on much needed education and tax transformation work. Our work to transform our education system is incredibly important to ensuring Vermont kids have greater access to resources and educational opportunities and stabilizing property tax bills for families.”
Speaker Krowinski thanked the House Appropriations and Ways and Means committees for their courageous work and leadership, the staff at the Joint Fiscal and Legislative Council offices for their deep expertise and partnership, and the Vermonters whose testimony and engagement helped shape the final bill.
“These bills move Vermont forward,” she said. “They are practical, principled, and people-focused, and I’m proud of the work we’ve done together here.”
The budget and yield bills now head to the Vermont Senate.
3.28.2025. MONTPELIER, VT — Speaker
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