Senate advances fiscal year 2025 budget adjustment, backs Medicaid increases and emergency housing extension

The Senate voted to advance H.141, the fiscal year 2025 budget adjustment bill, after the Committee on Appropriations recommended amendments that adjust appropriations across state government, increase Medicaid spending and extend emergency general assistance housing through June 30.

The Senate Appropriations Committee's proposal — presented on the floor by the senator from Washington, chair of the Senate Committee on Appropriations — would increase the global commitment Medicaid appropriation by about $125 million for the fiscal year, including roughly $47.7 million from the general fund and about $77 million from federal funds. The amendment also includes targeted one-time appropriations and program adjustments that the committee said respond to updated caseloads and fiscal pressures.

The committee argued the BAA (budget adjustment act) is intended to keep FY25 balanced, to correct technical items and to respond to costs that emerged after the FY25 budget was enacted. Appropriators described several large changes: a net $125 million increase to Medicaid/global commitment; a $24.5 million nursing-home Medicaid bed-day adjustment tied to higher-than-expected bed-day use (the committee reported an underestimate of roughly 78,000 bed days); $10 million in provider stabilization grants for health-care providers; and a mix of one-time and technical transfers in other programs.

Key provisions and amounts described on the floor include:

- Medicaid and human services: A roughly $125 million increase in the global commitment appropriation for FY25 (approximately $47.7 million general fund, $77 million federal) covering the Department of Vermont Health Access and the Department of Disabilities, Aging, and Independence and related costs. The committee also included $24.5 million tied to higher nursing-home bed-day use and $21.5 million designated as extraordinary fiscal relief for struggling nursing homes.

- Provider stabilization: $10 million (committee language) for provider stabilization grants to support Federally Qualified Health Centers, residential treatment and other behavioral health providers; the governor had suggested $4 million and the House recommended increasing it to $10 million.

- Child care/CCHFAP: A one-time reduction of $13 million in the Child Care Financial Assistance Program (CCFAP) due to lower caseload/utilization than budgeted; an offset of $13 million moved from general fund to the childcare special fund based on a stronger-than-expected payroll-tax revenue forecast for that fund.

- Housing and emergency assistance: The amendment directs about $8.6 million to the Vermont Housing and Conservation Board to accelerate housing projects, $2.8 million to complete an Act 186 pilot project for adults with developmental disabilities, and a change extending the general assistance emergency housing (the motel/hotel program) through June 30 rather than ending on April 1. The committee reported roughly 1,400 households in hotel rooms statewide and said that included about 466 children.

- Transfers and reversions: Technical corrections to property transfer tax apportionments (Act 181 corrections), reversions of unused funds (including $3 million from VHFA weatherization funds), and transfers from cannabis regulation receipts and other special funds to support substance-use programs and other line items.

On the floor, supporters framed the BAA as a technical but necessary bill that also addresses urgent needs. "This BAA ensures fiscal responsibility while taking care of Vermonters across the state," the senator from Washington said on the floor, summarizing the committee report and urging support. Lawmakers stressing housing and homelessness argued the extension of emergency housing through June 30 would prevent families and children from being exited in April, saying the extension buys time while longer-term housing solutions are put in place.

Opponents questioned specific additions and some one-time uses of general funds. One senator said two differences from the governor's proposal — a larger allocation to the Vermont Housing and Conservation Board and a reallocation tied to another program — were significant enough to vote against the package.

Amendment on salaries: During third-reading debate, the senator from Chittenden Central offered an amendment that would have reverted recent raises for nonbargaining state employees paid over $100,000 to free up nearly $7 million for homelessness response and a short-term statewide housing coordinator. That amendment was debated in committee and on the floor and was not adopted; the committee on appropriations and the Senate Health and Welfare committee reported they did not recommend the change.

Floor votes and next steps: The Senate voted to adopt the Committee on Appropriations' proposal of amendment and to propose that amended bill to the House. The committee's recommendation passed on a roll-call vote with 18 ayes and 12 nays. The Senate ordered the bill read a third time and recessed to address additional business; the measure will continue through the legislative process with the House and conference as required.

Votes at a glance (floor actions recorded during the same session):

- S.53 (certification of community-based perinatal doulas and Medicaid coverage): Motion to suspend rules and commit to the Committee on Health and Welfare with the Government Operations committee report intact — motion passed (voice vote on the floor; committee referral recorded).

- S.68 (an act related to repealing the Affordable Heat Act): Motion to relieve the Committee on Natural Resources and Energy and bring S.68 up for immediate action was debated and put to a roll-call vote; the motion failed (yeas 12, nays 18).

Why this matters: The budget adjustment retools FY25 spending to reflect changed revenue and caseloads, and the measures taken now can affect how agencies operate before July 1. The Medicaid increase and the nursing-home and provider stabilization appropriations respond to immediate provider and caseload pressures; the extension of emergency housing is intended by supporters to prevent families from losing hotel placements in April.

The bill will proceed to additional readings and the House for concurrence or further negotiation; appropriators said the changes leave a balance carried into FY26 planning.