Legislatures debate funding, mandates and implementation details across education, appropriations and environment committees — Feb. 24, 2026
State committees on Tuesday addressed funding and implementation details across education, appropriations and environment policy, focusing on how recent acts and proposed changes affect program financing, operational requirements and regulatory timelines.
Education
The House Education committee reviewed the structure and fiscal impacts of Vermont’s early care and learning system, with repeated references to Act 73 and Act 76 and to S.10. Witnesses and agency staff described how universal prekindergarten (UPK), child care subsidy programs and other supports interact and create different financial incentives for school districts and private providers.
Committee presenters reiterated that school districts are required to offer UPK to families that can secure a slot in a prequalified program. UPK can be provided by a district, by a qualified private provider, or by a different public district if a parent chooses that option. UPK is defined as a minimum of ten hours per week for 35 weeks per year for three-, four- and five-year-olds not yet enrolled in kindergarten.
Act 73 was cited as changing how districts are financed for UPK by tying counts of preK students to the district’s long-term weighted average daily membership to determine an "educational opportunity payment." At the weights currently written into Act 73, the presentation noted a FY2025 translation of roughly $7,000 per preK student based on FY2025 numbers and assumptions, while the FY25 preK tuition rate was reported as $3,800. Discussion noted those figures reflect Act 73 assumptions and current-year spending differences.
Committee testimony highlighted district-level variation in incentives under Act 73: some districts may be financially incentivized to pay UPK tuition to private providers, while others may be incentivized to operate local programs and receive students from surrounding districts. Presenters emphasized that local capacity, facility space, and workforce factors — including a revenue differential between public-school employment (with benefits) and private child care employment (often without benefits) discussed in the context of Act 76 — affect district and provider decisions.
The session also covered the Child Care Financial Assistance Program (CCFAP) and provider reimbursements. A contracted cost model prepared by First Children’s Finance and discussed in testimony showed licensed centers’ modeled expenses relative to CCFAP subsidies can produce negative margins for infant classrooms, break-even for toddlers and potential additional revenue for preschool classrooms. Ratios and maximum classroom sizes for licensed centers were cited (for example, infant staffing ratio cited as one teacher per four students, maximum classroom size eight; toddler one-to-five ratio, max size ten).
Presenters noted that universal preK enrollment in Vermont distinguishes the state nationally, and that multiple programs support young children: Head Start, CCFAP, and UPK. JFO (nonpartisan legislative office) material and a referenced national map were noted in framing Vermont’s enrollment context.
Appropriations (Senate)
The Senate Appropriations hearing included an extended review of attorney general office work, enforcement activity and budget needs. Committee discussion and testimony addressed appropriations, enforcement settlements and staffing.
Presenters described the Attorney General’s office work across divisions and noted specific enforcement and consumer settlement activity. The office highlighted a mix of legal activity — including consumer assistance contacts, civil rights inquiries, and investigations — and said some settlement funds may not be immediately available for spending because of timing and funding flows. The office noted they are "self-funding" certain Medicaid fraud and residential abuse enforcement work and that administration budgeting has been used to provide interim funding as the office evaluates longer-term arrangements.
Testimony referenced roles in litigation that have returned federal funding to the state in cases challenging federal actions, and described cross-office collaboration with other states and with the administration. The office also identified operational needs tied to program expansions and restored services, and said making certain positions permanent would avoid annual reauthorization debates.
Separately in Appropriations, presenters from cultural and civic organizations and the Secretary of State’s office outlined line-item funding requests and impacts. The Vermont Historical Society requested an increase and indicated historical statutes govern some of its operations and growth in demand for services. The Secretary of State described special funds the office uses for elections and licensing, noted decreasing federal election grants in recent years (citing a drop from about $1 million historically to $272,000 in a recent year), and laid out new position requests contingent on legislation (for example, positions contingent on passage of S.206 for early childhood educator licensure).
Committee members and agency witnesses also addressed one-time appropriations from Act 73 related to education transformation. The Agency of Education described a one-time appropriation of roughly $2.8 million from a larger $4.0 million request, detailing planned uses including limited-service positions, consulting services, capacity-building contracts and support for implementation of Act 173 and other transformation work. Agency staff indicated those funds would be used for a range of activities such as school board governance support, accountability plumbing across the system, and contracts for targeted one-time expertise.
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Environment — redemption program timetable and convenience-of-collection requirements
Environment committee testimony included detailed discussion of revisions to producer responsibility and bottle redemption plan timelines and convenience-of-collection standards.
Presenters reviewed draft changes that moved the required producer responsibility organization stewardship plan submission date from January 1, 2028 to April 1, 2028. Testimony also described a provision allowing the Secretary of the Agency of Natural Resources, when approving convenience-of-collection requirements in a plan, to alter the number of points of redemption depending on adequacy of redemption service in an area — provided that the Secretary may not reduce the number of redemption points below statutory minimums. Those minimums were described on the record as at least three points of redemption per county (at least one providing immediate return of deposit) and at least one point of redemption per municipality with population of 7,000 or more persons that provides immediate return of deposit.
Operators and redemption-center witnesses described business challenges tied to handling fees and staffing costs, noting market changes in redemption behavior (more bulk drop-offs rather than in-person small returns) and labor and space costs that affect the viability of certified redemption centers. Testimony raised concerns about lack of a guaranteed handling-fee floor and the impact of handling-fee levels on operators’ willingness to remain certified redemption centers. Witnesses discussed operational differences between commingled and non-commingled systems and steps in the draft law intended to allow a producer responsibility organization to address gaps in the current system to improve the rate of return.
Environment committee staff and agency witnesses also outlined proposed technical corrections and alignment with the Land Use Review Board process under Act 181, and explained an additional year of flexibility for the department to update standards following issuance of a comprehensive energy plan.
Other committee highlights
Finance committee testimony revisited education accountability and compliance issues tied to annual assessments, the Vermont Comprehensive Assessment Program (VTCAP) and related federal and state requirements. The department noted that students in grades 3–9 are required to take annual academic assessments and described gaps between current proficiency and long-term goals. The department also referenced Act 73 in broader governance and funding conversations.
Energy & Digital Infrastructure sessions discussed Act 174 and Act 181 implementation, alignment of timelines for enhanced energy plans and Land Use Review Board review, and jurisdictional triggers under Act 250 for development and for certain projects such as data centers, including triggers tied to parcel acreage, water usage thresholds and subdivision activity.
Human Services appropriations work addressed child care financial assistance program spending increases, noting recent federal grants to the child development division that allow capital investments and describing line-item adjustments to reflect increased utilization of CCFAP. The committee noted that roughly $4.0 million of a discussed package was for CCFAP payments and an additional $2.0–$2.5 million was associated with tax department administration in that package.
Health Care committee testimony covered bills H.117 and H.573 relating to mental health literacy, peer support initiatives in schools, suicide prevention protocols and related training. Testimony emphasized prevention, earlier intervention and the role of designated agencies, schools and peer programs in strengthening protective factors for youth.
General & Housing considered a multi-part housing bill package that included termination notice periods, security-deposit handling proposals and alignment of documentation and workplace protections for survivors of domestic violence, sexual assault and stalking with existing statutes such as the Fair Employment Practices Act and provisions of Act 32 and H.461. Committee counsel circulated a strike-all draft amendment to consolidate and refine multiple sections and noted additional drafting work on trespass and other provisions.
Conclusion
The article covers committee activity on Feb. 24 across the House and Senate Education, Appropriations, Environment, Energy & Digital Infrastructure, Finance, Human Services, Health Care and General & Housing committees. Discussions centered on funding, program implementation and statutory changes tied to Acts 73, 76, 78, 173, 174, 181 and related bills; the sessions examined UPK financing and district incentives, attorney general enforcement and budget matters, producer responsibility and redemption-plan timelines, energy planning alignments, and a range of education, health and housing policy and spending issues.
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