Legislative Highlights: What the 2025 Session Means for Mad River Valley Businesses
Legislative Highlights: What the 2025 Session Means for Mad River Valley Businesses
With deep appreciation to our partners at the Vermont Chamber of Commerce for their tireless work and close collaboration throughout the legislative session.
The 2025 Vermont legislative session brought a mix of progress, pause, and uncertainty for businesses across the state — including right here in the Mad River Valley. As your local chamber, we work in close coordination with the Vermont Chamber of Commerce, who continues to represent the broader business community in Montpelier with expertise, access, and advocacy that directly benefits our local employers.
Here’s a snapshot of 26 developments, delays, and decisions from this year’s session that could affect MRV businesses — for better or for worse:
💰 Economic & Financial Impacts
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$3 Billion Spending Growth: Vermont’s state budget has grown from $5.8B to $9.1B over five years — a trajectory that raises concerns about long-term affordability and tax pressure.
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Property Tax Relief (For Now): Lawmakers used $77M in one-time funds to limit this year’s average increase to just 1%. But how it’s paid for next year remains unclear.
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Proposed “Business-Only” Property Tax Classification Defeated: Thanks to unified business advocacy (including strong support from Governor Scott), this burdensome proposal was removed from the education bill.
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Infrastructure Sustainability Fund: A $7.5M investment in the Vermont Bond Bank will expand access to financing for needed infrastructure — a win for rural communities like ours.
🛠️ Regulatory Reform & Business Burdens
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Employer Mandates Paused: Costly mandates like a $25/hr minimum wage, temperature-related pay, and seating fines were shelved — but could reappear next session.
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Clean Car/Truck Rules Paused: Governor Scott hit pause on costly EV regulations, citing infrastructure and affordability concerns for businesses and consumers.
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Clean Heat Standard Deferred: This controversial (and expensive) climate policy stalled — but with Global Warming Solutions Act lawsuits looming, the debate isn’t over.
🧾 Healthcare & Leave
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Healthcare Premium Increases Tempered: A new law curbing prescription drug markups is expected to keep premium increases 4% lower than forecasted.
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Individual Market Reform: The small group and individual health insurance markets have been permanently separated, easing the financial burden on small employers.
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Unpaid Leave Expansion: Starting July 1, expanded definitions of “family” and leave types (including bereavement and safe leave) may impact business operations.
📦 Support for Small Businesses
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SBDC Funding Boost: An additional $150,000 will help Vermont’s Small Business Development Center continue offering expert guidance statewide.
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To-Go Cocktails Made Permanent: Restaurants can now continue offering takeout beverages — a pandemic-era innovation that’s here to stay.
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Nonstick Cookware Ban Delayed: Compliance timeline extended to 2028 to allow for more accessible alternative products.
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Brownfield Redevelopment Funds: $1M more will be invested in assessing and cleaning up sites ready for reuse.
🏡 Housing & Infrastructure
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Middle-Income Housing Programs Funded: $15M in state funding will support “Missing Middle” homeownership and a new renter loan fund — much-needed support for local workforce housing.
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New Rural TIF Tool: This tax increment financing mechanism opens new pathways for rural communities to build the infrastructure they need to grow.
🧑🎓 Workforce & Career Development
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Advance Vermont Support: With $150,000 in continued funding, Vermont’s online career hub will keep guiding job seekers toward education and employment opportunities.
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UVM Tech Hub Investment: $750,000 will help boost innovation and workforce development through the new UVM Tech Hub.
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Military Pension Tax Relief: Retirees with military pensions will enjoy more favorable tax treatment, potentially attracting skilled workers seeking second careers.
🌎 Trade, Tourism, and Expansion
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Montreal Business Development Office: With another year of funding, Vermont continues promoting expansion opportunities for Canadian businesses.
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Irish Trade Commission Created: New efforts are underway to strengthen international trade between Vermont and Ireland.
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Convention Center Study: A feasibility study could lay the groundwork for future economic and tourism development through expanded event hosting capacity.
📚 Education Reform
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Major Overhaul Bill Passed: Lawmakers advanced a sweeping education reform effort to restructure funding and governance with the goal of reducing costs and improving outcomes.
🧾 Data Privacy & Digital Policy
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Data Privacy Bill Stalled: A balanced bill offering consumer protection without overburdening small businesses passed the Senate but was sidelined in the House. Expected to return next session.
🌧️ Environmental Compliance
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Stormwater Permit Deadline Extensions: Businesses now have more time to comply with three-acre impervious surface regulations, with adjusted deadlines by watershed.
At the Mad River Valley Chamber, we remain committed to keeping you informed and advocating on your behalf. We’re incredibly grateful to our partners at the Vermont Chamber of Commerce for their leadership on these complex policy issues and their ongoing work to support employers statewide.
Let us know if you’d like more information about any of these updates or how they may impact your business.
