FOR IMMEDIATE RELEASE

January 28, 2026

Contact: Anika Heilweil, Fair Share for Vermont Campaign Manager, anika@publicassets.org

MONTPELIER, Vt.––The state should recapture federal tax cuts for the wealthiest Vermonters to reduce the effects of federal funding cuts and make needed public investments, a coalition of organizations said today at a press conference. Due to the passage of H.R. 1, the top 1% of Vermont income earners are set to receive an average annual tax cut of $57,000, beginning in 2026. 

The coalition, Fair Share for Vermont, recognized current pressure on the state budget, including due to an uncertain federal funding landscape. Advocates emphasized that the response to these pressures must be to first look to available revenue, instead of making cuts to vital programs. In total, the top 20% of Vermont income-earners are set to receive over $730 million in federal tax cuts in 2026 due to the passage of H.R. 1. 

“In a time when the top 1% of Vermont income-earners are set to receive an average federal tax cut of $57,000 per year, we must recognize the capacity for the state to increase taxes on the wealthiest, “said Anika Heilweil, Fair Share for Vermont Campaign Manager. “In order to have an honest conversation about the budgetary decisions that are made in the Statehouse in the coming months and years, we first need to recognize the available resources.”

One third of the state’s budget relies on federal funds, much of which are now uncertain. In the past year, the state has already experienced a lack of disaster recovery aid and pullbacks of federal grants. These budget pressures come on top of pressing concerns that Vermont communities were already facing prior to the current presidential administration.

​​”There has long been a need to address the basic fairness of our taxes and economic system in Vermont, and to generate greater public revenue for investments to meet the essential needs of the people who live here,” said Graham Unangst-Rufenacht, Policy Director at Rural Vermont. “But the recent dramatic growth in economic disparities is untenable and Vermonters cannot afford to wait any longer for action.”

The coalition highlighted several pieces of recently introduced legislation that would increase taxes on high earners in Vermont. Policies to increase taxes on the wealthy have also seen traction in other states in recent years, such as recently enacted legislation in Maryland, Massachusetts, and Minnesota, as states grapple with the need for state revenue, skyrocketing income inequality, and pullbacks of funding from the federal government. 

“Let’s be honest about what is happening,” said Nicole DiVita, President for Healthcare at AFT Vermont. “Our federal government is cutting funding for essential programs and services to give a massive tax cut to the wealthy. Vermonters cannot afford this. Our nurses, techs, hospital support staff, professors, higher education professionals, and all other workers in the state cannot afford this.”

The Coalition looks forward to working with the governor and lawmakers to ensure that our state has sufficient revenue to meet Vermont’s needs and reduce the impacts of federal funding cuts.

The Fair Share for Vermont Coalition includes the ACLU of Vermont, AFL-CIO, AFT Vermont, Hunger Free Vermont, Planned Parenthood of Vermont, Public Assets Institute, Rural Vermont, Vermont Conservation Voters, the Vermont Early Childhood Advocacy Alliance, Vermont Natural Resources Council, Vermont-NEA, Voices for Vermont's Children, VSEA, and individual representatives. 

More information is available at fairsharevt.org.   

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