Budget adjustments, prescription drug discount program, hospital pricing and housing credit facilities discussed across multiple committee meetings
Lawmakers on Tuesday reviewed budget adjustments and revenue transfers, considered a proposal to create a state prescription drug discount program, examined hospital outpatient pricing changes tied to Act 55, and debated expansions to housing-related credit facilities and tax credits, according to committee transcripts for Feb. 24, 2026.
Appropriations (House) — 09:35
Members of the House Appropriations Committee reviewed detailed FY27 budget adjustments and a series of transfers between special funds and the general fund.
Committee staff identified specific appropriations and one-time funding proposals across agencies. The Department of Vermont Health Access was cited for a $300,000 appropriation to cover costs above other federal HR1 grants. The Department for Children and Families appeared in several items, including a $15,000,000 allocation for a temporary emergency housing proposal, funding for a temporary secure treatment facility for youth, and $6,000,000 in startup costs for new shelters. The Administrator also described a $2,000,000 appropriation for provider stabilization grants in the Division of Insurance and Victim Assistance (DIVA), and referenced a Manufactured Home Improvement Program at the Department for Housing and Community Development and funding to the Department for Economic Development for an international partnership.
Appropriations staff walked the committee through transfers and routine adjustments into and out of the general fund. They noted statutory or typical transfers including a transfer to a debt service fund of $73,800,000 for FY2027 and $17,200,000 to the capital infrastructure cash fund, along with a statutory transfer to the Tax Computer Modernization Fund. The discussion also covered transfers from special funds into the general fund, estimating about $4,600,000 from the AHS earned federal receipts fund and roughly $2,000,000 of settlement funds from the attorney general’s office. The Department of Financial Regulation special funds — the insurance regulatory fund, the securities regulatory fund and the captives fund — were flagged in several transfer lines.
Committee discussion noted adjustments driven by prior legislation and base changes. Members referenced base additions tied to Act 73 and Act 68, including $1,500,000 that had been added to legislators’ base appropriations following an extended session and a 3% increase included for UVM, state colleges and VSAC. The Green Mountain Care Board was noted for a general fund appropriation tied to new positions authorized in Act 68.
On reserves and reversions, staff flagged $9,500,000 of anticipated reversions and the governor’s proposal to unreserve $30,000,000 that had been set aside in the FY2026 budget as one-time funds, including funds previously reserved for property tax relief. The committee also discussed a $50,000,000 fund identified as a potential source for Section 8 housing actions.
Appropriations (House) — 11:00: Prescription drug discount program and related fiscal items
The Committee reviewed H.577 and related strike-all and amendment language to establish a Vermont Prescription Drug Discount Program administered by the Office of the State Treasurer.
The bill as amended would create a new subchapter in Title 18, Chapter 91, authorizing a Vermont program to pool prescription drug purchasing power with other states, territories, regional consortia or nongovernmental organizations to negotiate discounts, centralize purchasing and establish volume discount contracting. The program would be available to all Vermont residents. A Ways and Means amendment removed provisions creating a standalone special fund and instead directed monies received by the program — transfers, gifts, grants, donations or other sources — to be deposited into the existing Financial Literacy and Economic Empowerment Trust Fund. The amendment also removed prior language that would have authorized the treasurer to set participant fees.
Committee staff and the fiscal office discussed an appropriation in section five of the bill: a $50,000 appropriation from the general fund to the Office of the State Treasurer for costs of developing and implementing the program. Staff queried whether the appropriation should be designated as one-time or base funding; treasurer’s office testimony described the office’s intent to request a one-time appropriation primarily for marketing and outreach, noting that operational administration would largely be handled by consortium staff in other states.
The committee also reviewed technical changes on copay accumulator language and how payment made with a prescription drug discount card would be credited to an individual’s deductible and out-of-pocket maximums when applicable.
Health & Welfare (Senate) — 11:00: Act 55 hospital repricing, H.534 community action agencies, S.163 APRNs
The Senate Health & Welfare Committee reviewed data on hospital outpatient costs, considered H.534 concerning community action agencies, and advanced S.163 about the role of advanced practice registered nurses in hospital care.
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On hospital pricing, presenters reviewed outpatient claims data for six hospitals. Using 2024 claims experience, overall outpatient costs for the group were presented as $607,000,000 before adjustments. Applying Act 55 drug pricing assumptions — repricing certain drugs at 120% of the average sales price (ASP) — reduced outpatient dollars to $488,000,000. Repricing lab and radiology at specified multiples of Medicare was described: lab repriced to 300% of Medicare and radiology to 500% of Medicare in the analysis. Those repricings reduced the overall outpatient spend further to $389,000,000, a reduction of $99,000,000 or about a 20% decrease for that group of hospitals, and brought the overall outpatient percent of Medicare to 294% from a higher baseline previously reported. Presenters and committee members discussed utilization and unit-cost drivers, identifying medications, radiology and lab services as high-cost areas and noting plans to meet with hospitals to discuss impacts.
On H.534, testimony outlined statutory updates to community action agency language, replacing outdated terminology with terms such as "individuals with lower income," clarifying planning requirements and referencing a triennial needs assessment and annual community action plan tied to community services block grant funding.
On S.163, committee staff walked through the bill as introduced and a small amendment. The bill would add advanced practice registered nurses (APRNs) to hospital patient bill of rights and hospital licensing statutes in places now limited to physicians. The amendment under consideration removed a sentence that would have required physician consultation and support to be available to an attending APRN at all times in the hospital patient bill of rights, while preserving statutory recognition of APRNs in patient rights and licensure language. Committee members discussed disciplinary and licensing references and the interaction with existing regulatory authorities.
Economic Development, Housing & General Affairs (Senate) — 10:10: Treasurer credit facilities, housing tax credits and down payment assistance
The committee examined a comprehensive strike-all draft that included multiple new sections addressing housing targets, municipal planning, electric vehicle supply equipment, and changes to the Vermont Economic Development Authority (VEDA) and treasurer-managed credit facilities.
Two new sections would alter limits on the treasurer’s authority to establish credit facilities tied to the state’s average cash balance. Under existing language the treasurer may establish a credit facility up to 10% of the state’s average cash balance; the draft would increase that cap to 12.5% and authorize a separate, purpose-specific facility of up to 1% of the state’s average cash on hand for off-site construction and housing. The sponsor clarified the language would not increase the overall cap beyond the intended limit — the new 1% facility would be offset by a reduction in the other facility so the combined ceiling does not exceed the expanded limit referenced in the draft.
The committee also discussed tax-credit provisions and the down payment assistance tax credit. The current draft extends a down payment assistance tax credit for five years at $250,000 annually; committee members discussed a request to increase that authorization to $350,000. Members discussed the revolving nature of the program and prior experience with program demand and loan repayments.
Other items in the draft included amendments to the definition of eligible facilities to allow VEDA to fund certain property unit housing developments, and discussion of using special fund interest and loan repayments for housing and economic development priorities.
Other committees and notable items
Several other committees raised related policy matters. Natural Resources & Energy discussed a work group to review water classification and anti-degradation requirements and administrative details for that study group. Judiciary panels reviewed a lengthy draft that would restrict corporate entities’ authority to spend on election-related activity and debated constitutional and enforcement questions, and also considered proposals on disclosure paths for autopsy reports and confidentiality of forensic facility records. Transportation hearings covered vehicle registration plate statutes and civil penalties for restricted vehicle operations on specific road segments. Commerce & Economic Development touched on potential use of education and estate-related special funds for higher education and economic development proposals.
Conclusion
This article covers the Feb. 24, 2026 committee hearings cited in committee transcripts. The House Appropriations Committee reviewed FY27 budget adjustments, transfers and housing and provider appropriations; Appropriations also reviewed H.577 and funding for a prescription drug discount program. The Senate Health & Welfare Committee examined hospital outpatient pricing tied to Act 55, H.534 on community action agency statutes and S.163 on APRN roles. The Senate Economic Development, Housing & General Affairs Committee considered changes to treasurer credit facilities, down payment assistance tax credits and related housing authorities. Other committees discussed complementary topics including water classification, corporate election spending authority, and transportation regulations.
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