AGCVT Weekly Legislative Wrap
Update from Montpelier
Howdy, members,
I'm feeling pretty repetitive reporting to you, once again, that things are starting off slow in Montpelier... So this week, I'll tell you that the action is starting to pick up.
The governor delivered his annual budget address on Tuesday, presenting his $9 billion proposal for state spending for FY26. You can watch the full speech here, or read the transcript here, if the spirit so moves you. Or you can read reports from VTDigger or Vermont Public. VP also has a handy listicle of takeaways, if that's your style. Here are just a few numbers that are important to AGC-VT, with the important caveat that this is only the first draft of the budget, and all of these numbers are very liable to change:
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$858 million Transportation Fund
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$100 million for capital projects over two years
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$37 million to the Vermont Housing and Conservation Board
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$4 million base funding for the Vermont Housing Improvement Program (VHIP)
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$2 million in base funding for the Mobile Home Improvement and Repair (MHIR) program
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$2 million additional funding for Downtown and Village Center Tax Credits
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$2 million for brownfield cleanup.
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$1 million each for infrastructure projects in Barre, Bennington, and Brattleboro (totaling $3M)
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$40 million one-time spending for municipal infrastructure and workforce housing
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Expansion of the Tax Increment Financing (TIF) program
Major takeaway: Housing remains a high priority heading into this budget negotiation, even in a tighter fiscal environment. As you all know, though, all the money in the world won't buy Vermont out of a housing shortage — hence AGC's focus on permitting and appeals reform, as well. We also need to keep a close eye on the transportation fund, which has been consistently underperforming.
Housing was also on the minds of legislators this week, with several committee hearings on the subject, broadly speaking, though not much work on actual bills yet. Sen. Kesha Ram-Hinsdale of the Chittenden-South district, for instance, urged her Senate Economic Development Committee colleagues to back her up in calling for a "State of Emergency" for housing construction. This would waive some burdensome building requirements, like permitting, for two years while the state plays catch-up on its housing shortage.
Housing was also on the minds of legislators this week, with several committee hearings on the subject, broadly speaking, though not much work on actual bills yet. Sen. Kesha Ram-Hinsdale of the Chittenden-South district, for instance, urged her Senate Economic Development Committee colleagues to back her up in calling for a "State of Emergency" for housing construction. This would waive some burdensome building requirements, like permitting, for two years while the state plays catch-up on its housing shortage.
The Scott Administration also put its own robust housing policy proposal (AKA, not just money) on the table this week. Here's the full bill text, the plan's summary and a corresponding presentation from Housing and Community Development Commissioner Alex Farrell. Want to testify to legislators on this bill or other housing legislation? Let's talk. I'd love lawmakers to hear directly from you.
Outside of Montpelier, I also want to update you all on something I'm sure is high on your mind: tariffs. At the time that I'm writing this email, it appears that 25% tariffs on imported goods from Canada and Mexico, and 10% tariffs on Chinese imports, are set to take effect tomorrow (Saturday). Here are some helpful stories from Reuters and the AP. Earlier today, tomorrow's effective date seemed to be called into question, with some talk that they would be taking effect March 1, after all. I spoke with AGC of America's government affairs folks in DC, and they said that the messaging from the White House has been very unclear, both on the question of the effective date, and on what goods, exactly, will be tariffed (Only finished products, or commodities, too? Will there be an exemption for fuel oil? They weren't sure.). I wish I could offer more clarity right now. If you want to talk with me about how tariffs will/do impact you, shoot me a message and I'll try to help.
Speaking of tariffs: U.S. Sen. Peter Welch hosted a roundtable in St. Albans on Monday to discuss the potential impacts to Vermont businesses, and yours truly spoke on behalf of AGC-VT. You can read/watch recaps from VTDigger, WCAX or NBC-5, or watch the full thing here.
And saving the best for last: We're hosting legislators here in Montpelier next Wednesday, 2/5, from 5-7 pm, to see AGC-VT's training facilities and meet our staff and members. It would be great to see some of you join, and have some beer and pizza on us. This will be your chance to speak directly with state lawmakers about your work, and what they can do to support it. You don't need to RSVP, but if you let me know you'll be coming ahead of time, I'll make note of it so I can make an effort to introduce you directly with your local legislators. The invitation is attached to this email.
That's all for now. Have a great week.
Sarah Mearhoff
Director of Advocacy and Communications
Associated General Contractors of Vermont
610-790-4992