House Commerce Committee split over whether to include Tier 2 areas in CHIP housing-infrastructure plan

The Vermont House Committee on Commerce & Economic Development spent its April 23, 2025 meeting debating whether the proposed CHIP (housing infrastructure) program should initially exclude Act 181 "tier 2" areas from eligibility, with members split over politics, capacity and the program's ability to deliver funding for rural housing.

The disagreement centered on two competing goals: craft a bill that can pass the House and move quickly, and design a program that reaches rural towns that lack tier 1a or 1b designations and so could otherwise be shut out of state infrastructure financing. Committee members said they had heard concern from the House Environment Committee and others that including tier 2 now could lead to sprawling development or fail to clear other committees.

Why it matters: CHIP is intended to help financing "pencil out" small-scale housing projects in towns that lack sewer, water or other infrastructure. Excluding tier 2 would narrow where money can be used and, according to several members, would keep many rural communities from accessing the program. Supporters of a phased approach said delaying tier 2 entry until the program is operational — or adding a…