Enacted Budget – Fiscal Year 2026
Vermont Governor Phil Scott signed the state’s budget for fiscal 2026 into law on May 21. Based on a Conference Committee report, the budget bill provides $9.1 billion in appropriations from all funds, including $2.46 billion in general funds, $2.43 billion in education funds, and $3.15 billion in federal funds. This represents a 4.1 percent increase in total spending from all funds, an 8.4 percent increase in general fund spending, a 5.2 percent increase in education fund spending, and a 0.8 percent decrease in federal fund spending, compared to fiscal 2025 enacted levels. General fund revenue in fiscal 2026 is estimated at $2.52 billion, including the January 2025 consensus revenue forecast and other general fund revenue sources as well as incorporating the cost of additional tax exemptions. The budget is also based on carryforward funds of $139 million, bringing total general fund resources to $2.66 billion.
The enacted budget makes ongoing investments in areas including housing, human services, and health care. For housing, the budget provides funds for the Manufactured Home Improvement and Repair Program (MHIR) to help with costs for owner-occupied manufactured homes and for the Housing Opportunity Grant Program (HOP) to assist homeless individuals, while also adding funds for the Land Access Opportunity Board and maintaining appropriations for emergency housing and youth homelessness. For human services, the budget includes a 5 percent rate increase for child care financial assistance and 2 percent rate increases for other service providers. Rate increases are also provided for certain health care providers such as Federally Qualified Health Centers, Rural Health Centers, nursing homes, and more. Additionally, the budget funds one-time appropriations for various housing projects and initiatives, health care and human services investments, higher education projects, and other purposes, while also transferring general funds to the Education Fund to be used for property tax relief. The governor noted in a letter to the General Assembly that this fund transfer is meant as “a bridge to a structurally transformed and fiscally efficient public education system in the near term.”