End of legislative supermajorities means a new era in Montpelier

On Wednesday, January 8, the Vermont House and Senate kicked off the 2025 legislative session. While Democrats still control both chambers, their supermajorities are gone and Gov. Phil Scott is joined by dozens of new Republican lawmakers in Montpelier.

The end of the legislative supermajorities gives renewed teeth to Gov. Scott’s veto power. After a campaign focused on getting property taxes, education funding, and energy costs under control, Scott leaned into those themes in his inaugural address.

He discusses the need for broad changes to school administration, state funding structure, and incentives in the current system that can encourage higher spending year after year.

Democrats have also acknowledged the need for significant reform. More details will be available in the coming weeks.

On energy, Republicans wasted no time introducing a bill to fully repeal the Clean Heat Act (H. 16, sponsored by Rep. James Harrison of Chittenden). It faces long odds in a legislature still controlled by liberal and progressive lawmakers who backed it just two years ago.

Cost estimates vary, but even the law’s author – former Sen. Chris Bray (Addison County), who lost re-election in 2024 – acknowledged Clean Heat Act could lead to an increase in the price of heating fuel of at least $1.70 per gallon.

The Clean Heat Act directed the Vermont Public Utilities Commission to develop a plan to implement the Clean Heat Standard, with the final report due mid-January. The General Assembly will have to adopt a plan for the Clean Heat Standard to move forward.

Last fall, VT PUC said the standard would be unworkable and recommended a straight per-gallon tax on fossil heating fuels in its place.

NFIB VT will be closely watching property tax reform plans and developments on the Clean Heat Standard, along with other legislation impacting the small business community.

If you have questions or feedback on these issues, or anything else happening in Montpelier, you can reach out to NFIB VT State Director John Reynolds at John.Reynolds@NFIB.org.