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WHAT VERMONT GAINS WITH THE PASSAGE OF H.454
1. A deliberate and thoughtful multi-year process with contingencies built into the process and required future legislative votes. 2. A more sustainable and predictable funding structure for Vermont’s education system. 3. A comprehensive approach for decreasing the cost curve of education spending. 4. Increased access to equitable educational opportunities across the state. 5. A commitment to our public schools. Far fewer independent schools will qualify to be approved, including and especially those that have been able to preserve the right to discriminate with public dollars. 6. No longer will public dollars flow to out-of-state private schools, subsidizing elite boarding school experiences. 7. No longer will approved independent schools be able to set their own tuitions. Why We Supported the Passage of H.454 This has been a challenging process and we did not come to this decision without long and thoughtful contemplation. We all have or had children in the EWSD school system. We treasure the role that the district’s teachers and staff have played in their lives and we are committed to ensuring EWSD has the resources to continue its dedication to our youth. We began this work last session, and again in January, with months of testimony from throughout the state and all levels of our education community. Students testified, teachers, principals, superintendents, school board members, and many members of the Administration taking extensive testimony. We listened deeply to Essex community members, parents, school leaders, and local taxpayers and ultimately chose the path of “yes” to move the work on Education Transformation forward. Do we wish it would go further? - yes, but ultimately we understand that this moment may not come again and Vermonters deserve the progress of education and tax progress that H.454 will bring. As legislators, we work to hear all of the perspectives and choose a path that best serves our community and Vermont as a whole. H.454 makes significant strides. SUSTAINABILITY Our current system for providing and funding education in Vermont isn’t working. Children have unequal access to quality education opportunities and the current funding system is unpredictable for individual voting communities as well as at the state level. With 100+ districts passing tailored budgets and the requirement for the State to fund those budgets, there are limited checks and balances. H.454 takes bold steps to address both the implementation and funding of Vermont’s education system. TAXES Do you remember receiving your property tax bill last year? If you were like many Vermonters, you were shocked by the increase and vocally demanded change. One of the reasons last year’s bill was so high was that the legislature chose not to hide the increasing cost demands, which we had done in the past by buying down the tax burden with general funds. When we buy down the tax rate, it addresses immediate property tax hikes, but it doesn’t address the underlying cost drivers and kicks the can to the following year. It also means that those general fund dollars can’t be used for other critical needs in our state such as housing, healthcare and workforce development. H.454 provides a framework for Vermont to bend the cost curve on education spending by prioritizing scale in the system, maintaining a focus on in-state, public schools and creating a tax structure that better spreads the burden among all Vermonters with extensive guardrails and off-ramps to minimize the impact on the most vulnerable. In the future, property tax bills will be more predictable and easier to understand. Additionally, the legislature took critical steps to address other cost drivers of education spending, such as rising healthcare costs and a lack of housing to grow our grandlists. STATEWIDE STRATEGY Education stakeholders across the state shared that a statewide approach is essential. In our current system, there is very little incentive for individual school districts to make the hard decisions about scale, down-sizing and governance change. If one district does do the work in our current system, like EWSD has, there is no guarantee that their taxes will go down, because we are still paying for the decisions of all districts. H.454 puts us on a path for a more statewide approach by reducing the number of districts, setting a foundation formula and creating statewide standards for scale. This will require change in all areas, but everyone will be navigating change together. PRIORITIZING PUBLIC SCHOOLS We are fortunate to have amazing public schools in Vermont and we should take every step we can to ensure our public schools remain strong and all children have access to a quality public education. In our current system, there are many ways that independent and private schools can work against our public education system such as high tuition rates, avoiding education quality standards and/or not adhering to the same inclusion requirements that our public schools must meet. H.454 takes a giant step forward in addressing these areas in order to keep Vermont education dollars in Vermont and prioritizing public schools when possible. H.454 is the biggest rollback of tuition dollars to approved independent schools ever. TIMING If we walked away from this vote, we would have lost a once in a generation opportunity to make bold change. It is accurate that this bill is far from perfect, but it is tremendous progress, considering legislatures have been trying to address these issues for decades. By walking away, we would have allowed the status quo to remain. That would have continued to put the burden of an unsustainable system on our individual communities, maintained the current inequities between public and independent schools and guaranteed that our property tax rates will continue to rise at unprecedented levels. By voting yes on H.454, we chose not to let that happen and instead offer a path forward and keep the door open for future positive change. We look forward to the work ahead next session and will remain vigilant in our efforts to gather feedback and understand the full impact. We understand that community members will have a variety of perspectives on this vote. We welcome the opportunity to discuss your thoughts, better understand the impact and explore the considerations that should be made for future steps in Vermont’s Education Transformation. Representative Alyssa Black Representative Karen Dolan Representative Lori Houghton Representative Rey Garofano Representatives Leonora Dodge
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Well, it’s nearly a wrap on the first half of the biennium. We have done hard and meaningful work this session– all while keeping up to speed on the rapidly changing federal landscape and how those changes will impact Vermonters. Consensus in this work doesn’t always come easy, but we all have a shared commitment to making Vermont a stronger, healthier and more affordable place to call home. At times, the path to getting there has been long but we are taking concrete steps like lowering health care costs and transforming our system of care.
This session, we created a new program to help our most vulnerable secure housing and social services to help them in their greatest time of need. We passed a transformative housing bill that acknowledges the current need for not only more housing–but affordable housing. Our priorities have been clear from the start, but we still have more work ahead of us. We remain focused on our commitment to a public education system that is safe, consistent, and provides a quality education for all Vermont kids while bending the cost curve for Vermonters. This policy is too important to rush through in the wee hours of the morning, so, we will back back on June 16th to continue our hard work in collaboration with the Governor and the Senate. As always, it is an honor to serve as your State Representatives and we are so grateful for the continued feedback we receive from you all. It makes a real difference and it informs how we make decisions with your concerns in mind. Please continue to reach out with your thoughts and questions– we can’t do this work without you. In service, Karen Dolan & Lori Houghton [email protected] [email protected] Federal Updates: Is Vermont Feeling the Impacts? We know that many of you are concerned about impacts to Vermont’s state budget and critical services being cut because of loss of funding. It’s so challenging to fully understand what this will look like, but we will do our best to keep you up to speed! Vermont is actively responding to federal policy shifts as developments become known. State Treasurer Mike Pieciak has established a task force to assess the economic impact of these policy changes on Vermont’s economy. For more information, follow this link: Vermont's Task Force on Federal Impacts. Additionally, the Essex House Delegation hosted a Community Forum on Monday, June 2nd with three of our statewide elected leaders, Secretary of State Sarah Copeland-Hanzas, Attorney General Charity Clark and Treasurer Mike Pieciak, to discuss this topic in more detail. The forum was recorded by Town Meeting TV and coverage is available at this link: https://www.cctv.org/watch-tv/programs/essex-community-forum-impact-federal-actions-vermont Highlights from Session Priorities: Education, Housing & Healthcare EDUCATION: H454 This is the priority issue that we will focus on when we return to the Statehouse on June 16th. We know this has been a hot button issue across the state– and we know that in order to address rising property taxes, we must look at the ways we fund our education system. Many communities across Vermont are concerned about maintaining community engagement and local voice as we work on education transformation. We share that concern, too. Change is a big deal– and we certainly don’t want to rush through this process. Significant progress has been made in aligning House and Senate perspectives on key elements of education policy and governance. The focus remains on balancing statewide cohesion with local engagement, fiscal responsibility with educational access, and governance reform with operational practicality. We don’t have a final package yet– but we will keep you informed as the work continues. As of now, the Commission on the Future of Public Education retains its central charge to make recommendations on state-level education governance. Their collective expertise and forthcoming public engagement process are essential for developing informed, impactful governance recommendations. We know that class size is pivotal in Vermont’s education policy decisions, especially given our rural context, declining enrollment, and fiscal challenges. Average class sizes in Vermonter are already smaller than those outlined in education research, and small class sizes can create challenges for effective instruction. We want all our students to have access to abundant opportunities, while limiting consolidation where it makes sense. So far, those numbers look like this: Proposed class size minimums:
HEALTHCARE: The legislature has acted on multiple fronts—affordability, access, and accountability—to stabilize Vermont’s healthcare system and prepare for an uncertain federal funding landscape. These measures aim to protect patients, support providers, and ensure the long-term sustainability of healthcare delivery in the state. In response to growing concerns the Health Care Committee has advanced a series of impactful bills this session: H.35: Unmerges the individual and small group insurance markets to reduce premiums for small businesses. With federal subsidies for the individual market set to expire at the end of 2025, this change helps offset potential cost increases for Vermonters. Signed into law. H.96: Raises the threshold for Certificates of Need, making it easier and less costly for healthcare facilities to pursue new projects—ultimately reducing expenses passed on to patients. Signed into law. H.266: Initially aimed at protecting 340B pharmacies, it was amended to cap excessive drug markups by hospitals. Vermont had been charging commercial insurers up to 600% over average sales price; the bill now limits prices to 130% of Medicare's average sales price, effective 2026. Delivered to the Governor June 5th, awaiting his decision. Perhaps the most impactful policy passed out of Healthcare this year is S.126. The current monthly premium is $3908.06 or about $ 58,000 per year for the benchmark Silver plan from Blue Cross Blue Shield of Vermont on the Vermont Health Exchange. Since Covid the Federal Government has extended tax credits and subsidies to most Vermonters, ensuring that no one pays more than 8.5% of their income for this benchmark plan. Barring action by Congress these credits will expire on December 31, 2025 and are unlikely to be extended. This is simply unaffordable for Vermonters. S.126 aims to reallocate scarce resources using multiple levers including reference based pricing. This is a tool that the GMCB shall use to set rates. The bill also allows the GMCB to review rates of hospital networks, provide transparency for state agencies to set contracts between providers and payers, creates a statewide health resource plan to identify what resources we actually have and what resources are actually needed and where. It forms a primary care committee that actually has some teeth in the development of the plan. It holds AHS accountable for the work and timeline required in ACT 167 around hospital sustainability. Most of all, this bill is about urgency and accountability. In the process of being delivered to the Governor. HOUSING: This year the legislature has been highly focused on work to address our severe shortage in housing stock. Our housing crisis calls for immediate and long-term solutions, which we have addressed in our landmark housing bill, S. 127. This bill is a comprehensive proposal aimed at addressing housing shortages and improving housing accessibility, affordability, and infrastructure in Vermont. S. 127 introduces new programs to incentivize rental housing rehabilitation, manufactured home improvements, infrastructure development, and protections for the vulnerable. Finally, the bill creates the Community and Housing Infrastructure Program (CHIP), a tax increment financing program, for municipalities and private developers to finance housing infrastructure projects in both rural and urban regions, to support the creation of up to 3,750 new units per year over the next 10 years. In the process of being delivered to the Governor. MEETING THE COMPREHENSIVE HOUSING NEEDS OF OUR MOST VULNERABLE: Through H.91, the legislature has set Vermont up to transition from a system rooted in emergency motel vouchers managed by the Department for Children and Families to a more comprehensive, sustainable program based in communities. This shift focuses on providing more intensive case management support, addressing the unique causes of homelessness for each person, and offering long-term solutions. The program’s wraparound services are a recognition that there are distinct circumstances behind homelessness, and Vermont aims to create a system that not only provides shelter but empowers people to achieve lasting stability and independence. The bill establishes the Vermont Homeless Emergency Assistance and Responsive Transition. This community-based approach promotes consistency across regions while allowing flexibility to meet local needs. H.91 represents a significant shift in how Vermont responds to homelessness—moving beyond temporary shelter toward a coordinated system that supports long-term housing stability, recovery, and self-sufficiency. Delivered to the Governor June 5th, awaiting his decision. (Update: The Governor Vetoed this important legislation) TAX CREDITS FOR VERMONTERS: Tax Credits – We expanded existing income tax credits and added new tax credits in S.51 to keep more money in the pockets of working Vermonters, families, older Vermonters, and veterans. This bill is now in the Senate to be passed out during the June 16th and 17th session and then sent to the Governor. Earned Income Tax Credit (EITC) – expands the Vermont EITC for individuals without children from 38% of the federal EITC to 100% so folks who are working can receive more of their money back at tax time. Child Tax Credit – raises the age limit for children who create a tax credit for their families from 5 to 6 years old. This tax credit is the most powerful piece of legislation to reduce childhood poverty passed in the last 25 years. Expansion of Social Security income limits – the income limits for taxpayers who are eligible to receive an income tax exemption on their social security income are raised from $50,000 to $55,000 (with a phase out up to $65,000) for individuals and from $65,000 to $70,000 (with a phase out up to $80,000) for joint filers. The vast majority of older Vermonters pay no taxes on their hard earned social security under this proposal. Expansion of Civil Service Retirement System (CSRS) income limits – the income limits for taxpayers who are eligible to exempt the first $10,000 of their CSRS income from income tax are raised from $50,000 to $55,000 (with a phase out up to $65,000) for individuals and from $65,000 to $70,000 (with a phase out up to $80,000) for joint filers. Military Pension and Survivor Benefits Exemption – Military retirees and their survivors with income of $125,000 or less will be able to exempt their military pension and survivor benefits from income tax. For income above $125,000, the exemption phases out until at $175,000 of income, the benefits are no longer exempt. Military retirees will no longer have to choose between taking their military pension exemption or their social security exemption but can exempt both as long as they qualify under the income limitations. Veterans Tax Credit – Veterans with income of $25,000 or less will be eligible for a $250refundable credit, meaning that even if they do not have a tax liability, they are eligible for the credit. The credit phases out up to an income limit of $30,000. When too many veterans are experiencing homelessness or living in poverty in Vermont, this is one small step towards honoring their service, too. PROTECTING OUR IMMIGRANT COMMUNITY MEMBERS: Another priority for this session was responding to the ever-changing federal landscape. The Legislature passed a number of bills that aim to protect targeted communities and restrict how Vermont law enforcement are able to cooperate with federal law enforcement entities. Through the establishment of standby guardianships, H.98 clarifies a process that allows immigrant parents to identify trusted adults who can step in as temporary guardians if the parent is detained or deported. This proactive step can provide some measure of comfort to immigrant parents and their children because they will know in advance who would care for the kids in the event their parents are detained. This process helps ease traumatic separations or confusion in emergency situations. It also avoids the necessity for DCF to take legal custody of the children in these situations. Signed into law. The confirmatory adoption provision in H.98 provides a clear and expedited process for Vermonters who became parents through the use of assisted reproduction technology (who are already parents under state law) to obtain a court order stating so. This provides a necessary level of protection for families who may travel to destinations that do not recognize the legal parenthood of all LGBTQ parents and others. Signed into law. Vermont law currently allows an exception to the Governor’s sole authority to enter into certain types of agreements with federal Immigrations and Customs Enforcement (ICE) if there is a declaration of a state or national emergency. S.44 eliminates this exception, and keeps the Governor as the sole authority in Vermont to enter into these ICE delegation-of-authority agreements. This will keep the State accountable to Vermonters regarding how our law enforcement interacts and cooperates with ICE. Signed into law. Act 8 expands Vermont’s hate-motivated crimes statute. It more accurately captures the conduct that such a statute is intended to penalize by expanding the scope of who can be considered a victim of a hate crime. Hateful conduct is not acceptable. Act 8 helps ensure that such conduct can be named and prosecuted effectively. The community forum on Monday, June 2, was a huge success. Thank you to everyone who attended. If you could not join us, you can still watch the recording on CCTV.
It was wonderful to be joined by Attorney General Charity Clark, Secretary of State Sarah Copeland Hanzas, and Treasurer Mike Pieciak, all of whom shared so much information about how Vermont is both preparing for and fighting back against the destructive actions at the federal level. Thank you to the incredible staff at the Essex Cinema and the Essex Experience for hosting the event and to CCTV for recording it and making it possible for us to share it statewide. A lot of information was shared at the event. My post has links to the resources. Attorney General Clark Actions Taken Against the Trump Administration Vermont Asylum Assistance Project – Know Your Rights Vermont Medical Society – Resources on Immigration Enforcement Secretary of State Copeland Hanzas Press Release on Elections Executive Order Civic Engagement & Education Resources Elections & Voter Resources Treasurer Pieciak Task Force on Federal Transition AARP – Social Security Advocacy & Assistance Trump Tariffs Impact on Vermont Press Release Vermont Immigration Legal Defense Fund Vermont General Assembly JFO Federal Funds Under Trump Administration Overview of Federal Funds in VT Budget How Proposed Changes to Federal Safety Net Programs Could Affect the States Joint Resolution Supporting Vermont's Transgender & Non-Binary Community Information about Immunizations and Reproductive Health Care Thank you again for joining us. We hope this information is helpful. As always, don't hesitate to reach out to us with any questions or concerns. The rain held off Saturday for another wonderful Essex Memorial Day Parade. I’m grateful for the organizers and volunteers who make this event happen year after year so we can come together to honor and remember those who have paid the ultimate sacrifice protecting our freedoms.
The legislature is winding up its work (hopefully this week!). Rep. Dolan and I will share an End of Session Report in the coming weeks summarizing the more impactful legislation passed. As always we want to hear your perspectives and answer questions. Your engagement helps ensure we are informed about what is important to you. Please reach out to me ([email protected]) or Representative Dolan ([email protected]) at any time. STATE LEADERS TACKLE FEDERAL POLICY IN VERMONT - JUNE 2, 6 TO 8 PM Join Attorney General Charity Clark, Secretary of State, Sarah Copeland Hanzas, and Treasurer Mike Pieciak, and the Essex House Delegation for a community forum about the impacts of the Trump Administration's actions on Vermont. They will share current information about the legal, financial, and policy implications of the federal situation, as well as actions they are taking to respond. The current federal climate is raising a lot of questions and uncertainty in Vermont. We believe in transparency and collaboration, and we appreciate the opportunity to bring state leaders into our community to share firsthand what is happening and how these challenges are being addressed. This engaging evening will feature a panel discussion followed by a Q&A session, offering residents the opportunity to ask questions and share concerns directly with state officials. The forum will take place on Monday, June 2, 2025, at 6:00 PM at Essex Cinemas, 21 Essex Way, Suite 300, Essex, VT 05452. Doors open at 5:30 PM. This event is free and open to the public, though registration is requested via this link: https://www.eventbrite.com/e/essex-community-forum-tickets-1371152918289 S.69 - AN ACT RELATING TO AGE-APPROPRIATE DESIGN CODE S.69 received a House vote of 133-9 and will be read a third time on Tuesday before it heads back to the Senate. S.69 will require default privacy protections for minors, ban manipulative design features that keep youth glued to the screen, make platforms be honest about how they collect and use data and give users tools to control their digital presence. Finally it will ban discriminatory and unsafe practices that harm at-risk youth. S.127 AN ACT RELATING TO HOUSING AND HOUSING DEVELOPMENT On a roll call vote of 100-36, the House moves forward S.127. Vermont’s housing crisis calls for immediate and long-term solutions. S.127 reduces permitting and appeals hurdles, allocates money for lower and middle income Vermonters to access financing for house purchases and rentals, and grants landlords bringing units up to code. To expand housing options quickly, the bill also helps people living in mobile homes and encourages building prefabricated modular housing. To nurture our labor force, the bill also protects our growing immigrant population from housing discrimination, ensuring that our farmers, contractors, and tourism businesses can depend on a robust workforce. Finally, the bill creates a tax increment financing pilot program for municipalities and private developers to expand housing infrastructure in both rural and urban regions, which could help support up to 7,000 new units within five years of the program’s inception. In conjunction, these measures will help us make significant progress in our housing goals. The House will vote on the bill a third time Tuesday before it moves back to the Senate. H.454 AN ACT RELATING TO TRANSFORMING VERMONT’S EDUCATION GOVERNANCE, QUALITY, AND FINANCE SYSTEMS The Senate passed out H.454 Friday afternoon on a voice vote. The bill passed out of the Senate was largely the House version passed several weeks ago with a few changes. Below are a few of the education governance changes and we are still working through the financing changes.
https://legislature.vermont.gov/Documents/2026/Docs/JOURNAL/sj250523.pdf?20250523094304 Best, Rep. Lori Houghton April in Vermont is a time of transition - flowers are starting to pop and the sun peeks out every so often - yet the rain, snow and chilly air persist. I keep my eyes focused on the not too distant future when the landscape will burst into that impossibly bright green color that Vermonters cherish.
April is also a transition in the Statehouse as our time is more fully in our committees after long crossover floor sessions. You can track our activity at https://legislature.vermont.gov/. We archive all sessions on YouTube which can also be found by following the link above. Please reach out to me ([email protected]) or Representative Dolan ([email protected]) at any time. We are always happy to answer questions and share perspectives. Your engagement helps ensure we are informed about what is important to you. YOU’RE INVITED TO OUR COMMUNITY CONVERSATION SERIES Please join your Essex House delegation during the legislative session for "Community Conversations," a monthly forum for updates on bills, committees, caucus activities and more. We welcome your concerns, questions and a spirit of open, respectful dialogue. Thanks to all who joined us on Zoom yesterday! Our next conversation is Saturday May 10, 11-12:30 at The Nest. EDUCATION TRANSFORMATION REFORM BILL On Friday the House passed H.454 an act relating to transforming Vermont’s education governance, quality, and finance systems on a tripartisan vote of 87-55. The Essex and Essex Junction House Delegation stands in strong support of H.454, a bold and forward-thinking blueprint to modernize and strengthen Vermont’s public education system. We believe this legislation is a major step toward building a more equitable and student-centered public education system and a more stable, resilient financing system. Vermont’s current education structure is showing signs of strain. Declining enrollment, rising costs, aging facilities, and financial complexity all signal the need for a careful but bold transformation. H.454 provides that path—one that is intentional, incremental, and guided by deep public engagement. We are particularly encouraged by several key provisions:
Essex and Essex Junction community members—like those across Vermont—deserve a public education system that is equitable, modern, and sustainably funded where all students have the chance to learn, grow and explore their interests. H.454 takes significant steps in that direction. We appreciate the thoughtful and intentional approach the House took to develop this comprehensive bill, and we look forward to working with our colleagues, stakeholders, and communities to continue moving H.454 through the legislative process to create an education system that sustainably and predictably elevates Vermont’s education system. H.454 now moves to the Senate. Please continue to reach out to us with your thoughts and questions. Thank you for the opportunity to serve our community. Rep. Lori Houghton |
