Labor Department requests steady budget; highlights UI modernization and hiring challenges

Feb 21, 2025

Commissioner Michael Parentson told the Senate Appropriations Committee the Department of Labor’s FY26 request contains no major increases beyond a 3% general fund adjustment, and that modernization projects (unemployment insurance, workers' comp, workforce development and financial systems) and frontline staffing remain priorities.

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Michael Parentson, Commissioner of the Vermont Department of Labor, briefed the Senate Appropriations Committee on Feb. 21 and said the department’s FY26 budget shows no major ups or downs beyond a standard 3% increase applied to general‑fund lines. He said the department employs roughly 250 people, operates 11 job centers and is about 59% federally funded in the current fiscal structure.

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