House approves $9 billion FY2026 budget after lengthy debate; vote 104–38

The Vermont House on March 27 approved H.4–93, the fiscal year 2026 appropriations bill, after multiple committee presentations and floor debate that ranged across education funding, health care rates, housing investments, and several one-time appropriations. The measure passed on third reading by a roll-call tally of 104–38.

Representative Shy of Middlebury, speaking for the House Appropriations Committee, opened the committee report by summarizing a budget that reflects testimony from 284 witnesses and seeks to balance competing priorities within projected revenues. The committee’s draft sets total spending across general, federal, transportation and education funds at just over $9 billion, an increase of about 3.7% ($322 million) over the current year, with a roughly $166 million (7.3%) increase in general fund spending.

Key choices and fiscal strategy

The bill sets education yields and rates for fiscal 2026, uses $77 million in general funds and $41 million in unallocated education reserves to limit property-tax increases, and preserves a 5% education fund reserve. Appropriations reflect base increases for public safety, human services, and targeted rate increases for providers in health and human services; the committee added a 2% increase for many community providers and nursing-home base increases intended to reduce reliance on enhanced financial relief.

Housing and one-time investments

Appropriations committee members highlighted a mix of base and one-time housing investments: $2 million in the base for manufactured-home repairs, $7.5 million for bond-bank infrastructure, $7.5 million for the rental revolving loan fund, $10 million for middle-income housing development, and other one-time funds totaling tens of millions to address housing supply and shelter needs. Several members criticized reductions to specific housing lines compared with the governor’s recommendation—most prominently the decision to make the Vermont Housing Improvement Program (VHIP) a one-time appropriation rather than base funding.

Health care and human services

Appropriations included multiple Medicaid and global-commitment changes: funding to increase reimbursement for federally qualified health centers, rate changes for family planning and evaluation-and-management codes, and carryforward language for hospital-directed payment programs. The committee reported increased base funding and one-time funds to support nursing homes and community-based providers, and language requiring an annual cost estimate for a 1% provider-rate increase to inform future budgets.

Floor debate and dissent

Floor debate ranged from procedural technical amendments to pointed criticism from members who said the package did not go far enough on housing or PCB remediation funding for affected schools. Members expressed appreciation for committee work but voiced specific objections: Representative from Burlington urged continued base funding for VHIP, calling recurring one-time allocations inadequate; other members cited cuts to brownfields and PCB remediation and concerns about expanding base spending during an uncertain federal outlook. Supporters argued the bill balances immediate needs and fiscal prudence.

Vote and next steps

On a roll-call vote the House approved H.4–93 104–38. The bill contains numerous line-item and technical amendments, timing and effective-date language (most of the bill takes effect July 1, 2025; some tax link-up provisions are retroactive to January 1, 2025), and multiple one-time appropriations to address housing, health care, flood recovery and other priorities. The bill now moves to subsequent steps in the legislative process for any further conference or consideration by the Senate and the governor.