In 1970, Vermont introduced Act 250, a land-use law designed to manage development in an era when local zoning was limited. Its goal was to ensure that large-scale projects, like ski resorts, didn’t overwhelm small towns or damage Vermont’s rural character. However, over the decades, Act 250 has grown into a broad regulatory framework that has hindered development while providing questionable benefits to the state’s environment and residents.
Supporters of Act 250 often claim it is the reason Vermont’s natural beauty remains intact. Yet, states like New Hampshire, Maine, and upstate New York have retained their rural character without a law as far-reaching as Act 250. Vermont’s natural limitations—mountains, small towns, and a lack of urbanization—were likely sufficient to maintain its character without a law that added layers of bureaucracy. What Act 250 did succeed in doing was regulating and taxing development to such an extent that it has stifled Vermont’s economy and hollowed out its middle class.
The Missed Opportunity for Balance
The original intent of Act 250—to prevent large-scale projects from overwhelming small towns—could have been achieved through simpler, more targeted measures. For example:
- A billboard ban, like the one Vermont enacted in 1968, preserved the scenic character of the state without harming economic growth.
- Local zoning laws, which most towns now have, could have managed development effectively without the need for statewide oversight.
- Infrastructure-heavy developments, like ski resorts, could have been required to fund municipal upgrades through targeted taxes, ensuring small towns were not overburdened by external growth.
Instead, Act 250 created a system that added significant costs and delays to development across the board, disproportionately affecting industries like manufacturing and multi-residential housing. The result has been a decline in economic opportunities for Vermont’s middle class and a concentration of growth in specialized industries like healthcare and finance, which are less reliant on land-intensive development.
The Data Speaks: Act 250’s Unintended Consequences
Two charts illustrate Act 250’s impact. The first chart tracks total projects approved under Act 250 from 1970 to 2024, showing a peak in the late 1980s, followed by a sharp decline. That graph will seem eerily familiar to anyone who has lived in Vermont over the last fifty years. This decline coincides with increasing regulatory complexity and rising taxes, which pushed out industries that traditionally provided middle-class jobs, such as manufacturing and construction.
The second chart compares major housing applications and permits to non-residential development under Act 250. Non-residential projects have consistently outpaced housing, contributing to Vermont’s housing crisis. Developers, faced with Act 250’s high costs and delays, naturally gravitated toward more profitable commercial and industrial projects, leaving multi-residential housing underdeveloped and overpriced. Alarmingly, current housing permits are now below 1970s levels.
Meanwhile, Vermont’s Gross State Product (GSP) has grown modestly, driven largely by federal funding and sectors like healthcare, tourism, and state employment. This reliance on external funding and service-based industries has concentrated economic activity in urban hubs like Burlington, leaving rural areas economically stagnant.


A Law That Chose Winners and Losers
Act 250 has not preserved Vermont’s natural beauty any more than local zoning or targeted policies could have. What it has done is create a system that chooses winners and losers:
- Winners: Industries like healthcare, finance, and state employment that operate outside Act 250’s reach or require minimal land development.
- Losers: Manufacturing, industry, and multi-residential housing, which have been driven out by high costs, delays, and regulatory hurdles.
This imbalance has hollowed out Vermont’s middle class and left much of the state struggling to keep up economically. Without the types of jobs that manufacturing and housing development provide, many Vermonters are forced to rely on lower-paying service jobs or leave the state entirely.
Time for a New Path Forward
As Governor Scott and members of the state government have called for a focus on creating affordable housing and addressing Vermont’s economic challenges, one step toward achieving these goals would be repealing Act 250. By eliminating this outdated framework, Vermont could empower local governments to make decisions that reflect their communities’ needs while fostering growth across all sectors. This approach would encourage private-sector development, create middle-class jobs, and address the housing crisis—all without sacrificing Vermont’s natural beauty.
Act 250 was created for a Vermont that no longer exists. Today, it stands as an obstacle to economic opportunity and a more equitable future. Repealing Act 250 would allow Vermont to modernize its policies, support its residents, and build a more balanced economy. This article is the first in a series exploring the impacts of Act 250. Stay tuned as we examine the policies, numbers, and decisions shaping Vermont’s future.
Dave Soulia | FYIVT
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