Vermont Public is independent, community-supported media, serving Vermont with trusted, relevant and essential information. We share stories that bring people together, from every corner of our region. New to Vermont Public? Start here.

© 2025 Vermont Public | 365 Troy Ave. Colchester, VT 05446

Public Files:
WVTI · WOXM · WVBA · WVNK · WVTQ
WVPR · WRVT · WOXR · WNCH · WVPA
WVPS · WVXR · WETK · WVTB · WVER
WVER-FM · WVLR-FM · WBTN-FM

For assistance accessing our public files, please contact hello@vermontpublic.org or call 802-655-9451.
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

5 takeaways from Gov. Phil Scott’s state budget

A man wearing a suit stands at a podium with a backdrop of red curtains
Brian Stevenson
/
Vermont Public
Gov. Phil Scott delivers his budget address at the Statehouse in Montpelier on Jan. 28, 2025.

Gov. Phil Scott’s fiscal year 2026 budget comes out to about $9 billion in total.

Here are some of the spending priorities and policies Scott is pitching for the coming fiscal year:

1. Level property taxes, and the end of universal school meals?

The governor is seeking to hold property taxes level — avoiding an estimated 6% increase tied to school spending — by using a one-time infusion of $77 million from the general fund.

Scott would also offset some of the expected tax increase by ending the state’s new universal school meals program, Administration Secretary Sarah Clark told reporters Tuesday. The meals program is expected to cost about $19 million next year.

More from Vermont Public: Gov. Scott says he's working on a plan for flat property taxes to 'hold taxpayers harmless' in 2025

2. Tax reduction package

The governor is proposing tax changes that he says would alleviate financial pressure on Vermonters.

As part of his proposed $13.5 million package, Scott wants to expand the income tax exemption for Social Security benefits. His budget proposes that single tax filers making less than $55,000 should be fully exempt from tax on their benefits (up from $50,000) and that joint filers making less than $70,000 should be fully exempt (up from $65,000).

More from Vermont Public: Lawmakers want to exempt more Vermonters from taxation of Social Security benefits

He also wants to eliminate the state income tax on military pensions, saying it would encourage veterans to start second careers in Vermont.

The governor is proposing to expand Vermont’s $1,000 child tax credit to include income-eligible families with children up to age 6. (Currently, only families with children 5 and under qualify.)

He also wants to boost the earned income tax credit, which helps lower-income households without children.

3. Public safety and “Raise the Age”

Scott proposed that the state should abandon its plan to treat 19-year-olds accused of most crimes as juvenile offenders, rather than as adults. That’s part of a law known as “Raise the Age.”

He proposed making it easier to revoke bail, and harder to reduce or suspend sentences.

More from Vermont Public: ‘Raise the Age' didn't overwhelm juvenile court, but DCF says lawmakers need to pause its expansion

Scott also proposed spending to confront the overlap in crime, addiction and mental health, including a move toward repurposing the Northeast Regional Correctional Facility in St. Johnsbury into a treatment-specific facility, and building a pilot recovery campus in the Northeast Kingdom for justice-involved individuals.

4. Climate policy 

The governor wants to repeal the provision that puts Vermont at risk of legal action if it doesn’t meet emissions-reductions targets at rates that scientists say are needed to avoid the worst effects of climate change.

That provision is included in the law known as the Global Warming Solutions Act.

Scott also wants to revisit legislation that allows Vermont to sue large fossil fuel companies for economic harms caused by climate change. And he says he'll be asking lawmakers to take another look at a 2024 law that requires electric utilities to get 100% of their energy from renewable sources by 2035.

5. Housing improvement and affordability

Scott wants to make two housing programs permanent:

  • The Vermont Housing Improvement Program, which helps cover the costs of rehabilitating or adding housing units. 
  • The Mobile Home Improvement and Repair Program, which helps the owners of manufactured homes pay for projects and repairs.

These pandemic-era programs were initially funded with one-time federal funds.

According to the budget summary, Scott also allocated $15 million each to two Vermont Housing Finance Agency programs: the Rental Revolving Loan Fund, which incentivizes the creation of rental housing aimed at middle-income households, and the Middle Income Homeownership Program, which provides resources for the construction and rehabilitation of modest homes.

Learn more: 

Read the governor’s budget document and proposed budget bill language.

Have questions, comments or tips? Send us a message.

Zoe McDonald is a digital producer in Vermont Public’s newsroom. Previously, she served as the multimedia news producer for WBHM, central Alabama’s local public radio station. Before she discovered her love for public media, she created content for brands like Insider, Southern Living and Health. She graduated with a degree in journalism from the University of Mississippi in 2017. Zoe enjoys reading, drinking tea, trying new recipes and hiking with her dog.
Latest Stories