2025/2026 Vermont Legislative Biennium Adjournment Report

The 2025/2026 legislative biennium adjourned on May 29, 2026, completing the business of the state and allowing legislators to return to their home districts in time to campaign for the 2026 election. There is no additional time scheduled for this year to address several of Governor Phil Scotts vetoes within the session. The lack of veto session this year, unlike the prior session is likely because the Democrats do not have a supermajority which would allow the Republicans the opportunity to sustain gubernatorial vetoes. Governor Scott made 13 vetoes during the biennium ranging topics related to employment practices, healthcare costs, energy, environment and data center development.

The Associated Builders and Contractors NH/VT participated in the passage, amendment or successful opposition to 42 bills during the session. Vermont Regional Director Matt Musgrave under the lead of the ABC NH/VT Board of Directors and Vermont Legislative Committee and with participation of members engaged legislative leaders through testimony, letters of support and grassroots lobbying. Of the 42 bills introduced 20 would have had serious negative effects on construction and employment throughout Vermont.

ABC NH/VT was successful in ushering “must pass” bills like the Transportation and Capital Construction budgets to the finish line. Rigorous attention was needed this biennium and ABC NH/VT along with its association network had a successful year protecting employers.

Below are some highlights from the 2025/2026 biennium:

• H.161 Fair Repair Act Defeated- would have required original equipment manufacturers of many products to release plans, schematics and wholesale pricing to the general public. This would have the effect of closing authorized retail and repair shops around Vermont forcing contractors to seek out of state supplies and expertise to repair equipment delaying projects and increasing costs.
• H.205 Agreements Not to Compete Defeated- would have created a prohibition on non-compete agreements for certain salaries and prohibited “stay or pay” agreements that employers use with sign on bonus expectations or training/tuition advancement agreements with employees.
• H.230 Fair Employment Practices Defeated/Vetoed- originally was written to add domestic assault and other crimes to standards used in employee leave and other employment programs. ABC NH/VT testified in opposition to one section of the bill which would have created a Heat Standard for employees creating mandates for “feels like” temperatures above 80 degrees. Although the Heat Standard was removed prior to passage by the House and Senate, Governor Scott vetoed the bill for separate sections that remained.
• H.344 Good Cause Standard for Termination Defeated- would have eliminated Vermont employment at will standard replacing it with a three strike standard including “cause” requirements and upon termination would require employers to provide severance until the employee found a new job. This would create courtroom conflict when terminating employees for any reason.
• H.259/S.62 Privatization Contracts Defeated- would create additional reporting requirements for state contracts including that wages/benefits for workers would be set to state negotiated union rates and would require owners of awarded companies to disclose not only documents related to the contract but also open company books including owners personal tax returns to the state auditors office.
• S.90 Employee Privacy Defeated- would have created a prohibition on any pre-employment screening of applicants including criminal and background checks.
• S.125 Collective Bargaining Defeated/Vetoed- included provisions requiring more reporting from contractors wages and worker information for capital construction projects in Vermont and allow “card check” a controversial union organizing tool for state employees. Testimony by ABC NH/VT removed contractor reporting requirements from the bill which was later vetoed by the governor for the state employee union sections.
• H.589 6-Year Statute of Repose to Real Property Failed to Pass- this policy has been a priority for both home builders and commercial contractors which would have created a statute of limitations of 6 years for suits related to building failures. After several years of efforts, the bill made it further than ever, but time ran short and it failed to pass prior to adjournment. Its likely to pass in the next biennium.
• H.718 Building Efficiency Failed to Pass- would have created a working group intended to create rules around Vermonts energy efficiency laws. The bill which failed to pass would have added ABC NH/VT to the working group.
• S.313 Transforming Vermonts Career and Technical Education system PASSED- After participating with a summer study group in 2025 ABC NH/VT help pass S.313 designed to create better outcomes, programming and funding for CTE centers. The bill also addresses providing alternatives for students who could not access the programs by using other local opportunities.
• S.328 Housing and Common Interest Communities PASSED WITH CHANGES- the original bill was introduced with some great additions and continuations to housing finance, bonding and development law. One poison pill added to the bill but defeated by ABC NH/VT was a “union bonus” which would have allowed contractors using union labor additional exemptions from Act 250.