Vermont response to federal actions: What is already happening and what else is needed?
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Statement on Gov. Phil Scott’s Jan. 20, 2026 Budget Address

January 20, 2026  |  Staff
Insight |State Budget & Tax

If these were ordinary times, we would expect Gov. Phil Scott to deliver his usual budget address calling for more of the same spending and revenue policies. But these are not ordinary times. The relationship between Washington and the states has fundamentally changed. The states are facing unprecedented federal cuts, spending freezes and abrupt changes to essential services. This new reality requires a new approach to revenue. Vermont, along with the other states, are going to need to reclaim the money used to provide federal tax cuts to the wealthy. Less help from the federal government doesn’t make us helpless. We can take matters into our own hands and ensure Vermonters get the services they deserve.