THE LATEST FROM THE VERMONT SENATE:
On education funding reform
05/23/25 11:10 AM update
05/23/25 11:10 AM update
Explainer
|Economic Security, Federal Tax & Budget
There have been a lot of changes to federal policy in recent months that are affecting Vermonters. Some have taken effect, some have been proposed and are under consideration, some have been implemented and then reversed, and some are working their way through court challenges. We will keep this page updated as much as possible as new changes happen.
05/23/25 update:
On Thursday morning, the U.S. House passed its version of the budget, which includes social benefits cuts and tax cuts that primarily benefit the wealthiest. While the specifics of the bill will likely change again in the Senate, some information about the House-passed bill and initial estimates of its impacts in Vermont and nationally are provided below.
Medicaid
The bill makes a number of changes to Medicaid, including requiring individuals ages 19-64 enrolled or enrolling in Medicaid to work or participate in training programs for 80 hours a month to qualify for benefits. Additional barriers to enrollment imposed by the bill include more stringent income and residency verification procedures and more frequent eligibility redeterminations. Under initial estimates that are subject to change, roughly 16,000 Vermonters are expected to lose insurance under this plan.
SNAP
The bill has a number of provisions that are expected to reduce eligibility for food assistance and result in Vermonters losing benefits. First, the bill requires states to pay at least 5 percent and up to 25 percent of SNAP benefit costs, beginning in 2028. Benefits are currently fully funded by the federal government. Additionally, the bill imposes work requirements for SNAP benefits and prohibits benefits for undocumented immigrants. Under this plan, at least 3.2 million Americans, and likely many more, are expected to lose food assistance. Currently, 66,000 Vermonters receive food assistance under SNAP (known as 3SquaresVT in the state), or roughly 1 in 10 people in the state.
Tax Cuts
The bill extends the Tax Cuts and Jobs Act with some additional changes, including allowing filers with incomes of up to $500,000 to deduct up to $40,000 in certain state and local taxes paid from their federal taxes. In Vermont, the plan is expected to save the richest 1 percent over $60,000 on average, which is over 300 times more than the expected average savings for the bottom 20 percent of earners. In total, the top 5 percent of earners in Vermont are expected to accrue $451 million in savings. Almost 70 percent of all benefits—$736 million—from this tax proposal are directed to the top 20 percent.
Cuts to federal programs
Congress and the president are proposing cuts to social benefit programs and tax cuts that primarily benefit the wealthiest Americans. These cuts would occur over a ten-year window via reconciliation, a separate process from the annual appropriations process in Congress. That budget process begins with the President’s budget request and involves discretionary funding. Reconciliation is typically used to change mandatory spending, like Medicaid. The final details of the benefits and tax cuts are still unknown; all information below is based on proposals and the House-passed budget. While the timeline of these cuts is also unknown, they are expected to be passed sometime this summer. More information on the budget process can be found in this explainer of reconciliation. Additional information can be found here.
Medicaid
Medicaid provides health insurance to low-income families and individuals, including children, parents, pregnant women, seniors, and people with disabilities. There are several proposals on the table to reduce or cut benefits for Medicaid recipients. Under one proposal, more than a third of Vermont Medicaid recipients could lose their health insurance. The House committee that oversees Medicaid is instructed to make at least $880 billion in cuts over ten years. Under the House-passed budget, roughly 16,000 Vermonters are expected to lose Medicaid coverage.
05/23/25 update: Impacts of House-passed cuts:
More on the impacts of cuts to Medicaid in Vermont:
3SquaresVT food assistance
SNAP benefits provide food assistance to Vermonters with incomes up to 185 percent of federal poverty guidelines. The House committee that oversees the program is instructed to cut at least $230 billion in spending over ten years. Congress could make benefit or eligibility cuts directly to food stamps or could shift costs to the state. More than one in ten Vermonters receive food stamps and could see changes or reductions in their benefits. There are also potential cuts to other food programs, including changing eligibility for school meals.
05/23/25 update: Impacts of House-passed cuts:
More on the impacts of cuts to food stamps in Vermont:
Tax cuts
Congress is expected to pass an extension of the 2017 tax cuts. Under this extension, the top 5% of Vermont taxpayers—those with incomes above about $320,000—would reap $450 million in savings annually. These tax cuts are expected to save Vermont’s top 1% of taxpayers an average of $60,500, more than 300 times the cut for the bottom fifth.
05/23/25 update: Impacts of House-passed cuts:
Actions by the President
The Trump administration has implemented many changes to federal agencies, funding, and regulations. Some of these are by executive order, while others are through agency policy. These actions continue to evolve as many are being challenged in court, and some are being reversed by the administration itself. The information below provides a high-level overview of some of these actions and potential impacts in Vermont. However, impacts will continue to change depending on lawsuits and federal actions.
Federal funding freezes
The administration proposed pausing federal funding under 2,600 different programs. While federal funding freezes are being challenged in court, the impacts of these freezes are already being felt in Vermont and could be astronomical. Federal funding accounts for roughly one third of the state’s budget, 
or more than $3 billion. Certain nonprofits and state agencies have already lost funding due to freezes, including funding for food assistance, vaccine access, the humanities, and climate and flood resiliency. Social Security payments make up the bulk of funding to individuals—more than $3.6 billion in FY24.
More on the impacts of federal funding freezes in Vermont:
Mass-layoffs of federal workers
The administration has fired tens of thousands of federal employees, with plans to fire at least a hundred thousand more. Courts have ordered a temporary pause on layoffs and reinstated employees within several agencies. However, many of Vermont’s roughly 5,000 federal employees remain uncertain on how much longer they will have a job.
Note: These numbers should be taken as estimates rather than an exact count. There are some differences in timing and methodology resulting in discrepancies in the reported federal employees in the state.
More on the impacts of layoffs of federal employees in Vermont:
- Federal Workers in Vermont by Agency
- Federal Workers in Vermont by County
- Thousands of Vermonters Have Federal Jobs
- Current Federal Civilian Employment by State and Congressional District
- Threats against federal workers impact communities in every state
- Federal employees in Vermont by Veteran Status
- Black Federal Workers in Vermont
- Where Trump, Musk and DOGE Have Cut Federal Workers So Far
- Tracking Trump’s overhaul of the federal workforce
- Impacts of Mass-Layoffs on Unemployment Insurance
Immigration
The administration has taken several actions that impact the quality of life for both documented and undocumented immigrants in Vermont. This includes unlawful deportations, barring immigrants from accessing public benefits, revoking student visas, and providing Immigration and Customs Enforcement access to confidential information. These actions impact immigrants, the communities in which they live, state employers and the economy, and much more. Many of these actions are being challenged in court and are subject to change.
More on the impacts of executive actions related to immigration in Vermont:
- State and Local Tax Contributions by Undocumented Immigrants in Vermont
- Comprehensive Tracker of all Trump Actions on Immigration
- International Student Visas Revoked by State (restored 04/25/25)
- Overview of Immigration and the Economy Nationally
For help with immigration issues in Vermont, contact:
- For legal services for non-detained persons, call the State Civil Legal Needs Hotline at 1-800-889-2047.
- For legal services for detained persons, contact Vermont Asylum Assistance Project at 802-999-5654 and .
- To report an active arrest, call the Migrant Justice Rapid Response Line at 802-881-7229.
To learn more about your rights, visit:
- The ACLU of Vermont Know your Rights Immigration Resources
-
Vermont Language Justice Project Know Your Rights (multiple languages available)
Pre-K-12 education
The administration has proposed dismantling the Department of Education. In addition to other impacts, this would mean less money for Vermont’s schools and its students and employees, impacting more than 100,000 Vermonters.
More on the impacts of executive actions related to education in Vermont:
- Federal Education Dollars in Vermont
- Title I Dollars in Vermont and Estimated Teacher Loss/Student Impact if Cut
Comment Policy
We welcome and publish non-partisan contributions from all points of view provided they are of a reasonable length, pertain to the issues of Public Assets Institute, and abide by the common rules of online etiquette (i.e., avoid inappropriate language and “SCREAMING” (writing in all caps), and demonstrate respect for others).
The economic impacts of the bill are horrific. But the attempt to protect offials who are charged with contempt of court for disobeying judicial orders is equally horrific and must be made widely known…..