This commentary is by Amy Spear, president of the Vermont Chamber of Commerce, and Megan Sullivan, vice president of government affairs for the Vermont Chamber of Commerce.
Each year, the Vermont Chamber of Commerce sets legislative priorities grounded in one core objective: advancing the Vermont economy. As we enter the 2026 session, Vermont stands at a defining moment.
Affordability pressures, demographic decline and rising operating costs are converging just as our state needs more workers, more housing and greater predictability to sustain economic growth.
Our work toward long-range strategy began with the Vermont Economic Action Plan, a statewide blueprint shaped in consultation with more than 5,000 Vermonters.
The plan established a clear vision for a stronger and more affordable future, grounded in data, pairing community insight and measurable targets.
It also signaled a pivotal shift in how Vermont approaches economic decision-making. Instead of reacting to problems as they arise, we now have a long-term framework that can guide policy choices and align efforts across the public and private sectors.
This alignment is urgently needed. The Vermont Futures Project’s new competitiveness dashboard shows Vermont trailing most states in economic performance.
Vermont ranks 51st out of 51 in economic momentum, 49th out of 50 in economic outlook, 51st out of 51 for effective business tax rates, 43rd out of 51 for cost of living, and 50th out of 51 for residents aged 25 to 44 as a percentage of the population.
This means we have a small and shrinking tax base, shouldering an ever-increasing cost burden, and our ability to improve affordability through growth is hampered by a policy environment that is not conducive to expanding economic opportunity relative to other states.
Without a substantial immediate commitment to economic stewardship and growth, the data point toward a future of higher costs or significant cuts to critical services.
Results from this year’s Business Climate Survey reinforce this landscape, too. Employers identified taxes, regulations, labor shortages, health care costs and housing challenges as the most significant barriers to growth.
Many employers consulted in the survey voiced concern that the state’s policy direction is disconnected from Vermont’s economic reality and said they do not feel heard in Montpelier.
When employers were asked how confident or concerned they were with elected officials’ understanding of economic pressures facing businesses, about 85% said they were either somewhat concerned or very concerned.
Business leaders shared with us examples of policy decisions advanced without a clear understanding of operational impacts. This sentiment reflects a growing disconnect at the precise moment Vermont needs alignment around affordability, stability, and long-term economic strategy.
It also underscores the essential role the Vermont Chamber plays in bringing employer perspectives to the policy and regulatory tables and ensuring economic policy aligns with economic reality. Addressing Vermont’s challenges requires sustained commitment to coordinated, data-informed action.
While there is difficult work ahead, progress was made last year on housing infrastructure, workforce programming and slowing the growth of health care costs. These advances were important, but they are not enough on their own.
Vermont must shift from episodic decision-making to a consistent, long-range economic strategy. The Economic Action Plan provides that roadmap. Paired with disciplined and transparent leadership, it offers a path toward measurable improvements for both families and employers.
Our 2026 legislative agenda reflects this approach and focuses on four core areas aligned with statewide priorities and employer needs.
With state spending up more than three billion dollars in five years, Vermont must adopt predictable fiscal practices that control cost growth and strengthen affordability for families and employers.
A modernized regulatory system must support timely housing and economic development. Streamlined permitting and clearer rules will reduce costs, shorten timelines and restore Vermont’s competitiveness.
Employers report that workforce pressures and housing shortages remain among their highest concerns. Strengthening recruitment and retention requires connecting training strategies, talent attraction and coordinated housing solutions.
Finally, manufacturing, tourism, health care, technology and small businesses all face rising pressures. Strategic investments in infrastructure, innovation, and cost containment will strengthen these key sectors.
As we begin the 2026 session, Vermont faces a choice. The path forward requires courage, collaboration, and a commitment to measurable progress. Employers are ready to be partners in this work. Policymakers must be equally ready to align decisions with long-term strategy and economic reality.
Vermont’s future is not predetermined. It is shaped by the choices we make — together.
