2026 Legislative Session Wrap-Up
The 2026 Legislative Session wrapped in May, capping a session that saw major discussions of fighting back against federal actions that gave massive tax breaks to the wealthiest Vermonters and raising progressive revenue for crucial state investments.
The session came in the wake of the passage of H.R. 1 in July, a federal tax and budget bill that gave the top 1% of Vermonters an average federal tax cut of $57,000 per year, beginning in 2026.
Policies that would recapture a portion of those tax cuts for the wealthiest Vermonters received significant committee time, following a push from lawmakers in March for the legislation to be considered. At that time, Vermonters sent thousands of emails and calls to legislators in support of the policies, and a group of wealthy Vermonters sent a public letter of support to legislators and the Scott Administration. These policies included a new tax bracket on the top 1% of Vermont taxpayers (on income over $586,000 per year) and a surcharge on unearned (non-wage) income for high-income Vermonters.
While the policies did not move out of committee, this session showed significant support for policies to increase taxes on the wealthiest Vermonters.
We are so grateful to the legislators in the House and Senate who fought hard for this legislation and who work every day for a Vermont that works for everyone. We are also incredibly grateful to the Vermonters who showed strong public support for fair taxation, including wealthy Vermonters who would be affected by these policies.
This year, Vermonters made a powerful statement that we can chart a different path from the federal government, and push back against federal tax and budget policies that take from everyone to give tax breaks to the wealthiest.
We’ll be back next session to continue to fight for a fair tax system that meets Vermont’s needs. In the meantime, keep following along and reaching out to your elected leaders and 2026 candidates to show your support.