The 2025 legislative session was marked by high-stakes negotiations, late-night committee standoffs, and a clear sense that Vermont’s long standing policy challenges—especially education and housing—can no longer be delayed. Lawmakers came into the session under pressure from voters frustrated by rising property taxes, soaring housing costs, and a sense that the state’s core systems are no longer working for everyday Vermonters. While some major reforms made it across the finish line, others collapsed under the weight of political disagreement.

Education finance reform was one of the defining issues of the 2025 session—and one of its most visible breakdowns. Early consensus around the need for structural change, including a shift to a foundation formula and new cost containment tools, gave way to deep disagreement over tax impacts, district governance, and policy scope. The House and Senate passed differing versions of H.454, and in the final days of the session, negotiations stalled dramatically. On the last night, Senate conferees introduced a new slate of proposals not previously vetted by the House, the Senate, or the administration—prompting frustration and a procedural standoff. The Senate adjourned in hopes of continuing negotiations the next day, while the House effectively ended the session by entering token proceedings until June 16. While conferees may continue discussions, no action on H.454 will be taken until the full Legislature reconvenes, leaving one of the year’s top priorities unfinished.

On housing, however, lawmakers notched a major win. S.127, the marquee housing bill of the session, creates the Community Housing and Infrastructure Program (CHIP)—a powerful new tool for municipalities to finance roads, water, sewer, and other infrastructure needed to unlock new housing. Combined with reforms to brownfield development, rental housing rehab programs, and modest permitting changes, the bill represents the largest housing investment Vermont has ever authorized.

Other key issues also saw action. The Legislature passed an extensive package of health care reforms aimed at addressing rapidly rising health care costs and the economic instability of Vermont’s health care system. Bills awaiting the governor’s expected signature include measures capping outpatient drug costs, empowering the Green Mountain Care board to implement hospital cost control measures, and creating a Statewide Health Care Delivery Strategic Plan led by the Agency of Human Services.

Energy and climate policy saw relatively few bills make it over the finish line this session. The administration paused enforcement of the Advanced Clean Cars and Trucks rules, while ongoing debates over electric vehicle mandates and utility regulation highlighted persistent tensions between Vermont’s climate goals and concerns about affordability, rural access, and grid readiness. Lawmakers also took steps on workforce development, public safety, and child care access, though many of these efforts will continue into 2026.

VBRA played a highly visible and constructive role throughout the 2025 legislative session, shaping major housing and building policy conversations. Member builders and designers offered real-world insights before key committees on issues ranging from rising construction costs and workforce shortages to regulatory burdens that slow down housing production. Testimony from Jim Bradley (Hayward Design Build), Collin Frisbie (Sterling Homes), and Jason Webster (Huntington Homes) helped lawmakers better understand the practical challenges facing Vermont’s builders—and what reforms are needed to lower costs, increase predictability, and get more housing built. VBRA was particularly active in debates around manufactured housing, modular construction, and the state’s energy code system (H.181), where Jason Webster and architect Sandy Vitzthum highlighted implementation barriers and called for realistic code compliance strategies.

Looking ahead, VBRA will continue to engage deeply in the work of the Building Energy Code Working Group (BECWG), which reconvenes in June with a full slate of consequential topics. These include the possible transfer of energy code authority to the Department of Fire Safety (DFS), integrating RBES certificates for owner-occupied homes into the statewide database, and clarifying contractor licensing and certification roles between DFS and the Office of Professional Regulation (OPR). VBRA has long pushed for practical, phased solutions to energy code implementation—especially for small builders and rural projects—and this year’s working group process will shape the future of how Vermont manages code enforcement, registration, and permitting for residential construction.

Emerging Issue: Lead Liability Insurance and Certification

A new issue is beginning to crop up around Vermont’s lead-safe contractor certification program. Contractors are reporting that they can’t obtain the liability insurance now believed to be required for certification—because insurers are refusing to underwrite it. Without access to this coverage, builders who are otherwise trained and compliant may lose their ability to work on lead-safe projects. VBRA is actively investigating the legal and regulatory basis for this requirement, and may push for legislative review or clarification in 2026 to ensure Vermont doesn’t inadvertently sideline a key segment of its construction workforce.

Notable Bills and Outcomes:

S.127 – Housing and Infrastructure Development (CHIP)

S.127 was one of the most significant housing bills passed in 2025. The bill creates the Community Housing and Infrastructure Program (CHIP), which allows municipalities to use a new tax increment financing (TIF)-like tool to support infrastructure that enables housing development. Up to $200 million in new increment can be authorized each year for 10 years, with guardrails requiring projects to serve a public good, undergo local approval, and meet feasibility and affordability criteria. CHIP is expected to unlock housing potential across Vermont—especially in communities that have struggled to fund basic infrastructure.

Beyond CHIP, the bill includes reforms to the Vermont Rental Housing Improvement Program (VHIP), streamlining how funds are distributed and expanding program access. It also contains provisions that support brownfields redevelopment, allow for on-site reuse of certain contaminated development soils, and prioritize state environmental reviews for housing-related projects. The final version reflects extensive input from developers, planners, municipal officials, and housing advocates.

H.181 – Building Energy Codes and Compliance Reform

H.181 makes significant changes to how Vermont administers and enforces its Residential and Commercial Building Energy Standards (RBES/CBES). The bill aims to improve code compliance while laying the groundwork for long-term reforms. Key provisions include expanding the Division of Fire Safety’s role in energy code oversight, directing the creation of a centralized RBES certificate database, and requiring the Department of Public Service to lead a public outreach campaign. The bill also supports voluntary contractor certifications and allows for future rulemaking around energy compliance tools. While the bill stops short of creating a full statewide residential building code or permit system, it signals a shift toward more formalized code administration. H.181 sets the stage for continued work on this front through the Building Energy Code Working Group and future legislative sessions.