By Shouldice Associates
As the Vermont Legislature enters what should feel like the third quarter of its “Super Bowl,” the pace instead resembles “March Madness.” Governor Phil Scott has grown increasingly vocal about what he views as slow progress and questionable direction in several committees. His recent warnings about stalled momentum and looming crossover deadlines signal a rising likelihood of veto confrontations as the session turns decisive.
Health care reform is at the center of this tension. Broad proposals expanding regulatory authority, introducing new cost containment tools, or advancing reference-based pricing are drawing heightened scrutiny from the administration. While the Governor continues to emphasize affordability, he remains wary of reforms that could raise premiums or destabilize the system. After years of debate, scope of practice expansion for optometry finally appears to be advancing, alongside renewed focus on rural health.
Climate legislation is following a similar pattern. The administration has criticized mandates and enforcement provisions that lack clear implementation plans or cost analyses. Proposals tied to the Global Warming Solutions Act—especially those expanding enforcement or litigation exposure—face elevated veto risk without significant revision.
Tax and revenue debates remain the most predictable flashpoint. Governor Scott continues to oppose broad based tax increases, particularly those linked to education spending or property tax shifts. Any package that raises Vermonters’ taxes without meaningful offsets will struggle to reach enactment.
Housing policy is more mixed. The Governor supports increasing housing production but is skeptical of proposals that add regulatory layers or slow development. Bills focused on process rather than capacity carry moderate veto risk, while infrastructure and financing tools aligned with administration priorities remain viable.
Across the State House, pressure is mounting. Mid-March typically marks the session’s midpoint, but this year feels like a sprint toward adjournment. Committees face tight deadlines, limited fiscal capacity, and competing priorities. House Appropriations spent the week reviewing major FY27 budget components—including opioid settlement allocations (H.660), corrections reforms (H.294), and revenue structure—underscoring how fiscal limits are shaping what can realistically advance.
Other policy areas moved quietly but meaningfully. A miscellaneous utilities bill underwent detailed review, hinting at future regulatory shifts. Education finance pressures continue to rise, with more than one third of approved school budgets increasing over 6%, driven by inflation, healthcare costs, and declining federal support. Debate over ending statewide PCB testing added another layer of tension.
Land use reform remains contentious, particularly in rural areas where Act 181 is viewed as a threat to growth. In response, the Senate Natural Resources Committee advanced S.325, delaying several components—including the “road rule” and Tier 3 provisions—some until 2030. Whether this eases rural concerns or simply postpones conflict is unclear.
Economic development also advanced. Senate Finance moved S.327, a broad workforce and competitiveness package, while the House advanced its sister state engagement bill (H.674) and consumer protection measures in ticket resale (H.512).
Health care committees remained among the busiest. Senate Health and Welfare advanced S.197 to strengthen primary care utilization as part of long-term cost containment efforts. Combined with ongoing work on hospital oversight and emerging issues like AI governance, lawmakers appear committed to modernizing the system while protecting access.
Committee agendas are increasingly filled with “TBD” placeholders—a hallmark of late session uncertainty as fiscal notes, legal reviews, and negotiations pile up. Bills are reaching a tipping point: they either get refined and positioned for passage or fall off the 2026 agenda.
Overall, the week highlights growing tension between legislative ambition and executive caution. The Governor has drawn a clear line favoring incremental, affordable, implementation ready policy over sweeping mandates. With no guarantee of veto proof majorities, the coming weeks will bring sharper debates, tighter timelines, and more intense negotiations as the Legislature races toward crossover and the final stretch of the session.
Bills Tracked
H 632 - An Act Relating To Miscellaneous Environmental Amendments
H.632~Michael O'Grady~House Committee on Ways and Means Committee Report (9-2-0)~3-9-2026.pdf (3-13)
H.632~Michael O'Grady~Section by Section Summary~3-9-2026.pdf (3-13)
H.632~Michael O'Grady~House Committee on Environment Committee Report (7-4-0)~3-9-2026.pdf (3-19)
Referred to Committee on Appropriations per Rule 35(a) (02/24/26)
Bill Note:
The latest draft of the bill has minimal effects on VDPA members.
H 723 - An Act Relating To Posting Of Land
NEW STATUS: Read 1st time & referred to Committee on Natural Resources and Energy (03/20/26)
Bill Note:
The legislation clarifies how property owners can legally restrict or permit hunting, fishing, and trapping on their private acreage. To be enforceable, owners must display standardized signage at specific intervals along their borders and update these notices annually. Additionally, the proposal requires individuals to register their posted status with the local town clerk for a small fee each year, that is good for 365 days. A new provision ensures that minor signage errors do not necessarily invalidate the posting, provided a reasonable person would understand that access is restricted.
H 941 - An Act Relating To Municipal Regulation Of Agriculture
NEW STATUS: Action Calendar: Action postponed until March 24, 2026 (03/20/26)
Bill Note:
This bill aims to provide flexibility for farmers regarding water quality training, regulate the transport of non-sewage waste to farms, and ensure transparency and fairness in retail pricing for consumer commodities.
Key Provisions
The Secretary of Agriculture, Food and Markets may adopt rules for training classes or programs for farm owners/operators (small, medium, or large farms) on preventing discharges and managing stormwater runoff.
Training topics may include:
Compliance with statutory and regulatory requirements for farm operations.
Management practices and resources for compliance.
Techniques to minimize runoff of manure or nutrients into state waters.
Standards for nutrient management and planning.
Best practices for improving farm operations and water quality.
The Secretary may require training as a condition for farm permits or certifications and can assign training if deemed necessary.
Training costs will be covered by the Agency of Agriculture, Food and Markets using funds allocated for water quality initiatives.
Mandatory water quality training requirements in the Required Agricultural Practices Rule will be repealed as of July 1, 2026. The Secretary will determine future training requirements.
Management of Non-Sewage Waste
The bill requires individuals transporting or arranging transport of non-sewage waste or waste materials to farms to obtain approval from the Secretary of Agriculture, Food and Markets.
Key Provisions:
Definitions:
"Non-sewage waste" refers to waste other than sewage that may contain pathogenic organisms but excludes stormwater runoff.
"Waste materials" include non-sewage solid or liquid digestates from certified solid waste facilities or materials approved for use under Solid Waste Rules.
Approval Process:
Transporters must obtain approval from the Secretary before transporting non-sewage waste or waste materials to farms.
The Secretary may require information on the composition, nutrients, contaminants, and volume of the waste.
Approved transporters must report the composition, source, laboratory test results, and volume of the waste as frequently as required by the Secretary.
The Secretary may prohibit the import of waste to farms if it violates the farm’s nutrient management plan or poses risks to the environment, human health, plants, soils, or water quality.
The bill does not affect the authority of the Secretary of Natural Resources to regulate waste under other state laws.
Retail Pricing Standards
The bill amends unit pricing standards to require uniform price disclosures for food and commodities sold by retail establishments, excluding made-to-order food sold by restaurants and prescription drugs.
Key Provisions:
Definitions:
"Unit price" refers to the retail price of a consumer commodity expressed per standard unit of weight, measure, or count.
"Made-to-order" food is prepared at the time of order or sold in bulk servings but excludes prepackaged ready-to-eat foods.
"Real-time dynamic pricing" is prohibited for increasing prices during business hours unless correcting genuine pricing errors.
Disclosure Requirements:
Retail establishments must display both the total selling price and unit price of consumer commodities.
Price information must be bold, clear, and conspicuous, with a minimum height of 7/32 inch.
Price information must exclude deposits but indicate when a deposit is required.
Prices must be displayed at checkout for consumer verification.
Unit price requirements do not apply to:
Retail stores with less than 7,000 square feet of floor space (unless part of a larger chain).
Items sold for consumption on the premises.
Clearance or limited-time sale items.
Items with identical unit and total selling prices.
Seasonal decorations and beverages subject to federal Alcoholic Administration Act requirements.
Total selling price requirements do not apply when all items in a store have the same price.
Violations of the chapter are subject to penalties, including fines of up to $500.
The act will take effect on July 1, 2026.
S 60 - An Act Relating To Establishing The Farm And Forestry Operations Security Special Fund To Provide Payments For Farm And Forestry Operation Losses Due To Weather Conditions
NEW STATUS: Delivered to Governor on March 20, 2026 (03/20/26)
Bill Note:
The Senate Agriculture Committee is actively reviewing the bill to ensure the appropriate guardrails are in the bill and that the grants are based on need, not just splitting the funds up between all funds that are seeking reimbursement.
S 323 - An Act Relating To Miscellaneous Agricultural Subjects
S.323~Bradley Showman~Draft 4.1, 3-13-2026~3-13-2026.pdf (3-13)
S.323~Bradley Showman~Senate Committee on Finance Committee Report (5-0-2)~3-19-2026 (1).pdf (3-19)
NEW STATUS: Referred to Committee on Appropriations per Senate Rule 31 (03/20/26)
Bill Note:
Municipal and State Regulation
The primary objective of the bill is to overturn the Vermont Supreme Court’s decision in In re 8 Taft Street DRB & NOV Appeals, 2025 VT 27. It clarifies that municipalities lack the authority to regulate farming or the construction of farm structures under local bylaws. The bill also exempts the management of small backyard poultry flocks (excluding roosters) from municipal regulation. At the state level, the bill increases the annual gross income threshold for Required Agricultural Practices (RAP) compliance from $2,000.00 to $5,000.00.
Land Use and Tax Provisions
The legislation introduces several updates to land use value appraisal and permitting:
Permit Exemptions: No state permit is required for constructing improvements for accessory on-farm businesses involved in the storage, sale, or processing of products, provided that more than 50% of sales or $250,000.00 in annual sales or donations that come from products produced on that farm.
Program Transfers and Oversight
Agricultural Credit: The Vermont Agricultural Credit Program (VACP) is moved to the Vermont Economic Development Authority (VEDA).
Additional Provisions
Milk Producers: Grants producers the right to a hearing if a handler refuses to purchase their products, staying the refusal until a decision is made.
Pesticides and Seeds: Repeals the Interstate Pest Control Compact and updates Vermont’s seed laws to conform to national uniform standards, including mandatory reporting on genetically engineered and treated seeds.
Farm-to-School: Expands the program to allow the use of contracts in addition to grants for developing local food initiatives.
S 325 - An Act Relating To Studying The Creation Of Model Bylaws
S.325~Ellen Czajkowski~As passed by Senate Committee on Finance~3-18-2026.pdf (3-19)
NEW STATUS: Referred to Committee on Appropriations per Senate Rule 31 (03/18/26)
Bill Note:
Note: The Road Rule will be delayed until 2030.
Key Amendments to Act 250
Definition of Development:
Includes road construction and associated driveways for access within a tract of land.
Excludes priority housing projects in municipalities with populations over 10,000 and certain designated areas until 2030.
Permit Exemptions:
Exemptions for accessory dwelling units and small housing projects (e.g., 75 units or fewer in designated areas) until 2030.
Exemptions for converting commercial structures into housing units (29 or fewer) until 2030.
Tier 1A areas: Municipalities can apply for Tier 1A status by meeting specific criteria, including planning for natural resource protection.
Tier 3 areas: Rules will be developed to identify critical natural resources for protection and limit development criteria in these areas.
Tier Designations:
Municipal and Regional Planning
Municipal Zoning:
Municipal panels must enforce existing Act 250 permits in Tier 1A areas unless conditions are transferred to municipal permits.
Panels must include conditions from previous Act 250 permits in new municipal permits unless certain exceptions apply.
Regional Planning:
Regional plans must include future land use maps with designated areas such as downtown centers, village centers, planned growth areas, and rural conservation areas.
Regional planning commissions must submit plans and amendments to the Land Use Review Board (LURB) for review and compliance determination.
Housing Development
The bill seeks to reduce discretionary review of residential development and proposes the creation of a Vermont Model Code to assist municipalities in adopting clear and objective standards.
It includes interim housing exemptions for certain projects in designated areas to encourage housing development.
State Community Investment Program
Establishes guidelines for designating downtown and village centers, planned growth areas, and neighborhoods to promote smart growth principles.
Introduces the concept of "sprawl repair" to redevelop lands in alignment with smart growth principles.
Tax Credits
Updates eligibility criteria for tax credits, focusing on projects in designated centers, particularly those listed or eligible for listing in the National Register of Historic Places.
Appropriations
Allocates funding for the development of model plans under the 802 Homes program and public engagement on Tier 3 areas.
Effective Dates
Various provisions have staggered effective dates, with some extending to 2030.
H 739 - An Act Relating To Prohibiting The Use And Sale Of The Herbicide Paraquat
H.739~Bradley Showman~House Committee on Agriculture Committee Report (8-0-0)~3-13-2026.pdf (3-19)
NEW STATUS: Read third time and passed (03/20/26)
H 942 - An Act Relating To Miscellaneous Agricultural Subjects
NEW STATUS: Read third time and passed (03/20/26)