ABC NHVT News

We were told adjournment for the 2026 Vermont Legislative session would be Friday, May 22nd but those dates sometimes change. Almost a week later the legislature is still working its way through some must pass bills including the state budget and the yield bill which creates the state property tax rate for school funding. Legislators are eager to adjourn for personal endeavors and to begin working on their campaigns. Bill S.325, which relates to land use which originated in the Senate to make some correctional changes to Act 250 and tiered land development has just left a conference committee. The bill was amended by the House to repeal significant changes made in Act 181 in prior years. The repeals included the Tier 3 land use area and the "road rule". Both of those policies were hotly opposed by a large contingent of lobbyists and landowners as a "land grab" by politicians. The conference committee made some changes to the House amendment but kept the spirit of the repeals. The changes will likely be agreed to by the full legislature and make the changes to law. The state budget and school yield bills are moving through conference committees as well to be voted out this week. Last week a potential compromise was made between Governor Scott and the majority in the legislature to make some changes to school programming including whether and how to close unused schools in Vermont. The compromise was likely in response to a veto threat to the state budget which could cause a state government shutdown. It's likely the bills will pass and session adjourn, but a veto is still possible. As of this writing, the last week of the session, ABC NH/VT is proud to announce we have accomplished our goals in the legislature this year. We successfully opposed many bills that would negatively impact contractors and businesses while at the same time helping good bills related to technical education and workforce come to pass. A detailed report of the session will be released in the coming weeks. Lastly, ABC NH/VT will be launching a political action committee (PAC) with members who volunteer over the next month. The purpose of the PAC will be to raise funds to promote candidates in the 2026 election that champion the needs of contractors. Watch out for more news on this topic. Contact Matt Musgrave, Vermont Regional Director matt@abcnhvt.org, if you are interested in participating.Sonnet 4.6

As Vermont moves from winter into spring, the Legislature is entering a critical stretch of the session. With lawmakers aiming to adjourn by the end of May while preserving time in June for a potential veto session, the pace at the State House is accelerating. Committee agendas suggest priorities are narrowing, with housing, land use, and workforce regulation taking center stage.

Crossover in the legislature is the deadline for the House or Senate chambers to pass bills they’ve introduced and send them to the other chamber to agree, amend, or let the bill die before the end of the session. That day was last Friday for policy bills and this Friday for “money” bills that require consideration from the appropriations committees. If a bill does not pass out of its chamber by now, it’s effectively dead unless a special rule suspension occurs. Rule suspensions are extremely rare and require mitigating circumstances to be considered.

Suddenly and without warning legislative leaders and advocates realized that “crossover” is less than a month away causing a quick uptick in the pace in the state house. At the same time, tension amongst legislators and advocates rose at the same pace. If bills do not cross over from the House to the Senate and vice versa before March 13th give or take a day or two the bills will die for the biennium. Add that we are in an election year, and we see that intensity build fast. For the most part, new bills have ceased to be introduced. Leaders in either chamber can choose to suspend rules to introduce new bills such as municipality charter changes and other priority issues but the reasons are limited. Instead, committees have ended ceremonial introductions and non-impactful updates from their daily agendas and have moved on to impactful and essential legislation.

Today, January 6, the Vermont Legislature gavels back in to complete their work for the 2025/2026 biennium. Last year, over 30 bills (of 700+/- introduced) had direct impacts on contracting, economy and business that ABC NH/VT tracked. Of those bills ABC staff and members were able to make effective changes to bills that passed and successfully opposed bills that would be negative to our community. This year we are back, those bills are technically still in play, and advocates anticipate another 600-700 bill introductions in the coming weeks. Your legislative team headed up by staff, the ABC NH/VT board, Vermont legislative committee, contract lobbyists and members like you who can help make a difference with our elected officials. In the coming weeks staff will closely examine bills that are being introduced looking for good policy to support and analyze the devils in the details to identify bills that may be problematic.

New Hampshire Posts Third-Lowest Construction Unemployment Rate in the Nation at 2.0% in September 2025 – A Clear Indicator of Strong Demand for Skilled Craftspeople CONCORD, NH – According to an analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors (ABC), New Hampshire's estimated not seasonally adjusted construction unemployment rate stood at an impressive 2.0% in September 2025 – ranking third lowest among all states nationwide, behind only Oklahoma (1.4%) and Hawaii (1.7%).

ABC NH/VT is continuing its preparations for the 2026 legislative session and things are heating up. A new Legislative Affairs Committee focusing on Vermont is forming with its first meeting being scheduled for mid-November. You can sign up for the committee by CLICKING HERE. Additionally, staff are tracking policy makers and working with partners to prep for the session. One valued ABC NH/VT partner is the Lake Champlain Chamber of Commerce who represents a large group of Vermont employers and often leads on certain economic issues in the state house. Vermont Regional Director, Matt Musrave, has been participating in the chambers “Legislator Speed Dating” events across Northwestern Vermont.

As 2025 draws to a close your staff at ABC NH/VT is looking ahead to another successful year through planning. Staff are scrambling to decide what programs, events, training and engagement opportunities are most important to members and create a calendar to reach those goals. Two new committees popping up this year in Vermont include legislative and workforce goals. Both committees are open to any ABC NH/VT company and their employees. One of ABC NH/VTs strong points is Government Affairs with years of successfully supporting the industry by opposing bad policy and supporting good policy. This year Vermont will stand up its own Legislative Affairs Committee to track bills and decide how or whether there should be involvement by ABC NH/VT. The committee will meet twice per month through the legislative cycle (January-May) and then as needed through the election cycle of 2026. Members of the committee can be both experienced “policy wonks” or brand new to how the legislative process works. What is important is that members meet and share their expertise so that staff may understand the impact of Vermont legislation on the construction community. In some cases, there will be opportunities for members to come to Montpelier and share their experience should they choose.

The Vermont legislature reconvenes in just three short months to begin the second year of the biennium — an election year. Although it is an election year, voter turnout in Vermont is typically much lower during midterm elections than during presidential years. Those who do turn out are what Vermont political circles often call “super voters,” meaning they participate in every election, from local town issues all the way up the ballot. These “super voters” tend to vote based on issues, so legislators are especially motivated to pass strong policy during midterm years. One such issue expected to come before the legislature is how Vermont treats its Career and Technical Education (CTE) programs and schools. Last year, a sweeping education bill passed that targeted K–12 educational funding and institutions, seeking to trim costs and create more efficiencies in programming and districting. This year, CTE centers face similar measures and planning efforts.

As we turn the corner into September, with fall right around the corner, activity is starting to ramp up with Vermont legislators. We are entering the second year of the 2025 biennium, and bills from last year are waiting on legislators’ desks while new ones are being drafted. A typical biennium produces over 1,400 bills, from which lawmakers must select a small group of “must-pass” items—such as the capital budget and transportation bill—along with a limited number of other legislative priorities. During the fall, legislators work with stakeholders to craft bills that reflect their priorities. One policy area where ABC NH/VT will be engaged is the proposed prohibition of noncompete agreements. Business organizations generally oppose such prohibitions, and ABC NH/VT will look to its members to help shape a specific policy position on any legislation that emerges. Employers cite different reasons for using a noncompete clause or agreement during hiring. Some want to protect proprietary intellectual property; others aim to safeguard client and supplier lists. Employers may also worry that investments in workforce training could lead to employees “walking across the street” to a competitor. In some cases, franchise agreements include noncompete clauses.