VBSR Advocacy Wraps Up in the State House Halls

Climate Resilience:

• VBSR Successfully Defends the Global Warming Solutions Act, Comments on Draft Climate Action Plan: Throughout the legislative session VBSR members have testified in front of key committees, joined together in Montpelier for our annual Businesses for Climate Action Lobby Day, and participated in driving over 600 calls to the legislature to defend Vermont's bedrock climate legislation against attacks in 2025.
  
  Your consistent drumbeat of support for climate action in Vermont ensured that legislators understood the importance of the Global Warming Solutions Act!
  
  
• VBSR also met with members of the Climate Action Office, and the Vermont Climate Council to submit our formal input on the Draft Climate Action Plan. VBSR strongly supports the workforce development efforts being included in the Draft 2025 Climate Action Plan, including job transition and training programs for Vermonters.
  
  Our suggestions for additions to the Final Climate Action Plan, to be released in July 2025, included several key areas where the draft plan could better address the needs of businesses in building climate resilience, including:
  
  
  • As a part of the proposed “Flood Resilient Communities Fund” we recommend a long-term funding source specifically for businesses, especially those most underserved and most impacted by climate disruptions. These funds have proven essential for our communities and the Vermont economy, and should be institutionalized in preparation of future climate disasters. VBSR supports long-term sustainable state funding for businesses who are impacted by climate disasters and disruptions.
  • VBSR recommends formal state support for expanded Business Technical Assistance, especially for small and underserved businesses, be included. While our changing climate is affecting all businesses, small businesses are particularly vulnerable. Approximately 40% of small businesses fail to reopen after a disaster, and an additional 25% fail within a year of reopening, according to FEMA6. According to the Federal Emergency Management Agency (FEMA), 75% of small businesses without a continuity plan will fail within 3 years of a natural disaster. VBSR strongly encourages the Vermont Climate Action Office and the Vermont Climate Council to include a priority action proposing expanded state support for one-on-one business and technical assistance in business climate resilience.

Climate Mitigation:

• FY26 Budget Includes Funding to Implement the Climate Superfund Act: While we will need additional funding in future years, maintaining momentum to implement the bill this year is crucial. Vermont communities continue to face - and must prepare for - increasing climate disasters.
  
  The budget also includes funding for a new position that will help with planning, mapping, and regulatory review for the Act 250 land use reform enacted last year via Act 181.
  
  Thank you to everyone who contacted your legislators in support of these key funding priorities; it made a difference in a tough budget year!

2025-2026 Session Priorities:

• Climate Resilience: Champion business input as part of the update to VT’s Climate Action Plan and Resilience Implementation Strategy.
• Climate Mitigation: Defend bedrock climate legislation to reduce climate emissions in VT while advancing the Global Warming Solutions Act.
• 2025-2026 Goals:
  • Support the implementation of VT’s Global Warming Solutions Act
  • Support the development & passage of new state-level climate mitigation policy
  • Support the development & passage of new state-level climate resilience policy
  • Continue to offer VBSR’s ClimateReadyVT program

Childcare:

• Big Wins in the Budget; House Will Hear ECE Bill in 2026 Session: The Vermont Senate passed their version of the Early Childhood Educators (ECE) Profession Bill, which would create professional recognition for early childhood educators working in regulated child care settings. Vermont is the first state in the country to take this historic step. This success is due to advocacy from members of the early childhood education workforce and its champions.
  
  The House will take up the ECE Profession Bill, in its original language, in 2026. We look forward to continuing to work with our partners, the Vermont Association for the Education of Young Children (VTAEYC), in supporting what’s best for our youngest children, improving child outcomes and increasing workforce stability.
  
  In the context of widespread uncertainty around federal funding and a difficult fiscal year for our state, Vermont continued to prioritize progress on child care this legislative session. The FY26 budget includes:
  
  • $5 million for a new child care reserve fund which will provide more long-term stability to the system, even in times of economic hardship, and help protect public investment in child care in future budget negotiations.
  • A 5% increase (totaling $5.5 million) in reimbursement rates for infants and toddlers, which will help child care programs expand capacity where it’s needed most and increase access for families.
  • $156k was allocated and marks an increased investment to grow the Early Childhood Youth Apprenticeship Program which provides the next generation of ECEs with on-the-job learning opportunities through partnerships between CTEs and child care programs.
    
    The program allows high schools students to graduate prepared for a career in ECE and ready to work. This additional funding will allow the program to accept students from the waitlist and provide summer programming.
  • $182k in funding that will help child care programs participate in the Child and Adult Care Food Program, which helps children access nutritious food and snacks while attending their child care programs.
  • Language stating the Legislature’s intent that the FY27 state budget should return to the full General Fund base appropriation allocated in Act 76, restoring the base funding that has been reduced in the past two years while the program grows to scale.

Paid Family Medical Leave:

• Unpaid Medical Leave Signed Into Law: The Paid Family and Medical Leave Coalition, including VBSR, are thrilled to announce that H.461 passed into law on May 22nd! These unpaid leave expansions are especially meant to protect LGBTQ+ employees and their families, individuals in need of bereavement leave, or those in need of Safe Leave in Vermont.
  
  VBSR continues to support a robust, universal, paid family and medical leave program for all Vermonters, and this unpaid leave expansion is a good step in the right direction.

2025-2026 Session Priorities:

• Child Care: Support new legislation to establish standards and pathways to promote a well-trained early childhood educator workforce in VT.
• 2025-2026 Goals:
  • Uphold implementation of Act 76, VT’s historic child care legislation (2023)
  • Support the development of a new child care bill building upon Act 76, including Early Childhood Educator workforce development
  • Support the implementation Let’s Grow Kids’ continuity plan related to the organization’s sunset in December 2025
  • Support opportunities to expand Vermont's Paid Family and Medical Leave program, while continuing to work towards our ultimate goal of a robust Paid Family and Medical Leave program for all Vermonters

Healthcare:

• Medical Debt Relief Passes Into Law: The medical debt relief bill has officially been signed into law! We are thrilled that the Governor signed S.27 on May 15th, and forgive the medical debt of thousands of deserving community members.
  
  The initiative is expected to eliminate a significant amount of medical debt for approximately 60,000 low- and moderate-income Vermonters, according to Newsweek. If your business is interested in getting involved in our healthcare advocacy efforts next session email or Public Policy Manager, Johanna de Graffenreid.

Housing:

• Support for Key Housing Initiatives in the Budget: This session VBSR focused our housing advocacy on protecting affordable housing funds in the FY26 Budget. We're pleased to announce that the final legislative draft funds Vermont Housing Conservation Board's (VHCB) Property Transfer Tax share in the amount of $36.9 million, split between VHCB's affordable housing and conservation missions. It also provides an additional $5 million for VHCB for affordable housing production.
  
  However, this may still result in a slowdown of the their affordable housing production pipeline as the final allocation is lower than the original $60million request.
  
  VBSR also strongly advocated for the $16.1 million was appropriated to the Vermont Housing Finance Agency (VHFA) for the two middle income programs as well as no less than $250k for the First-Generation Homebuyer grant program. The way the legislature drafted allows VHFA flexibility to administer the programs based on as the need for various types of housing.
  
  While the final draft includes $38 million for the motel emergency program, it includes the same eligibility criteria and caps that advocates opposed this year. You can find the details of housing investments by the Vermont Legislature in the FY26 Budget here.

2025-2026 Session Priorities:

• Housing: Incentivize and support efforts to promote the development of affordable housing for low-and-middle-income Vermonters.
• Healthcare: Support legislative and administrative efforts in 2025 related to maintaining our existing emergency and maternity health services at rural hospitals.
• 2025-2026 Goals:
  • Advocate for affordability of programs/services supporting employee basic needs
  • Support legislation to incentivize affordable housing development in towns seeking development as a result of the Act 250 housing exemption (2024)
  • Pursue opportunities to support access to affordable healthcare, including preserving emergency and maternity care in our more rural communities
  • Work toward our ultimate goal of decoupling health insurance from employment