By Andrew Brewer and John Alden, PPC Chair

The 2026 legislative session proved to be one of transition. While lawmakers spent much of the year debating major education reform and property tax restructuring, several issues of particular importance to Vermont architects—including school construction, housing development, building energy codes, and liability protections—also received significant attention.

Some long-discussed initiatives advanced, while others stalled or were postponed. In several cases, the Legislature established the framework for future action rather than adopting immediate policy changes. As a result, implementation and rulemaking will remain just as important as legislation during the coming year.

While this report focuses on issues affecting architects and the design and construction industry, it represents only part of a busy legislative session. For those interested in a broader review of the major legislation enacted this year, DRM's comprehensive 2026 Legislative Session Summary is available here:  DRM 2026 Legislative Session Summary | June 16, 2026.

School Construction Returns to the State Agenda (H.955)

H.955, the Legislature's sweeping education reform bill, represents the most significant change to Vermont's public education system in decades. While much of the public debate focused on governance and property taxes, the legislation also marked an important milestone for Vermont's design and construction community by reestablishing a state-supported school construction aid program for the first time since the 2007 moratorium.

Rather than immediately funding projects, the bill creates the framework for a long-term state construction aid program. The Agency of Education must now develop rules governing project eligibility, prioritization, and funding, with consideration given to factors such as facility condition, educational opportunity, enrollment trends, and governance structure. The legislation also establishes the potential for future assistance to districts carrying qualifying legacy construction debt, although that program remains subject to future appropriations.

During the session, lawmakers also backed away from proposals that would have required mandatory school district mergers. Instead, H.955 establishes a multi-year planning and facilitation process intended to encourage regional collaboration and voluntary restructuring before any future governance changes are considered.

The timing of the new construction program is important. While the statutory framework is now in place, districts should not expect funding immediately. The Agency's rulemaking process will continue over the next two years before grants become broadly available. For architects, engineers, school officials, and communities planning future capital projects, the passage of H.955 represents the beginning—not the end—of rebuilding Vermont's school construction program.

Housing and Land Use

Housing remained a top legislative priority throughout the 2026 session, although much of the conversation shifted from creating new regulatory requirements to refining and implementing reforms enacted in recent years. For architects, developers, and property owners, the most significant discussions centered on S.325, the Legislature's Act 250 and land use reform bill, and the continued implementation of Act 181.

Act 250 (S.325)

S.325 revisited several provisions adopted under Act 181 in 2024. Most notably, lawmakers repealed the controversial "Road Rule" before it took effect and eliminated the Tier 3 mapping process, both of which had generated significant concern among rural communities, landowners, and the development community.

At the same time, the Legislature left much of Act 181 intact. Implementation will continue over the coming biennium, including expanded interim Act 250 exemptions for qualifying housing projects, the designation of Tier 1 areas intended to encourage development, streamlined regional planning provisions, and other planning and permitting reforms intended to support housing production.

Looking ahead, additional legislative refinements are likely as policymakers evaluate how these reforms perform in practice. Discussions are also expected to continue about the long-term direction of Act 250, including whether Vermont should move toward a more predictable, impact-based permitting system that better balances housing production, economic development, and protection of critical natural resources.

Housing Development

Beyond Act 250, the Legislature approved a number of additional housing initiatives intended to encourage new construction, including expanded financing tools, municipal planning reforms, infrastructure assistance, and measures designed to accelerate housing production. While no single proposal will solve Vermont's housing shortage, lawmakers continued moving toward policies intended to make residential development more feasible throughout the state.

Building Energy Codes (H.718)

Building energy code policy remained an active issue throughout the session, although comprehensive legislation ultimately did not pass. H.718 proposed significant changes to how Vermont administers residential and commercial energy codes, including statewide administration, contractor registration, municipal enforcement authority, and updated compliance requirements. The proposal generated extensive testimony from architects, builders, municipalities, and code officials before ultimately stalling. AIA Vermont was actively engaged throughout the discussion, advocating for code updates that improve building performance while remaining practical, enforceable, and coordinated across state and local government.

Although H.718 did not advance, building energy codes continue to evolve through the administrative rulemaking process. Governor Scott's Executive Order allowing compliance under either the 2020 or 2024 energy codes remains in effect through the end of 2027, providing additional flexibility while broader policy discussions continue. Building code implementation and enforcement will likely remain an active issue during the coming biennium.

Construction Liability: Statute of Repose (H.589)

One of AIA Vermont's principal legislative priorities this session was enactment of a construction statute of repose. H.589 would have established a six-year limit on claims arising from improvements to real property, bringing Vermont more in line with the vast majority of states. Supporters argued that Vermont's lack of a statute of repose contributes to higher insurance costs and exposes architects, engineers, contractors, and other design professionals to potentially indefinite liability long after projects are completed.

AIA Vermont members testified in support of the bill, sharing compelling firsthand examples of how the absence of a statute of repose affects their practice and creates unnecessary uncertainty for the design and construction industry. Although the proposal received extensive testimony and thoughtful consideration, it ultimately did not advance before adjournment. While the bill did not pass this year, the discussion significantly increased legislative understanding of the issue and laid important groundwork for future efforts. AIA Vermont will continue working with legislators and industry partners to advance a balanced construction liability framework during the next biennium.

Environmental Permitting and Wetlands

Outside the legislative process, Vermont also continued debating reforms to wetlands permitting and environmental regulation. Following Governor Scott's Executive Order 06-25 intended to encourage housing development, the Agency of Natural Resources proposed amendments that would reduce certain Class II wetland buffers within designated growth areas.

The proposed rules quickly became one of the year's most closely watched regulatory issues. After extensive public comment, the Legislative Committee on Administrative Rules (LCAR) voted that portions of the proposal exceeded the Agency's statutory authority and formally objected to their adoption. The Administration subsequently submitted a written response defending its legal authority and asked LCAR to reconsider its decision. The Administration subsequently submitted a written response defending its legal authority and requesting that the committee withdraw its objection.

When LCAR met again on June 18, the committee deferred further action after learning that discussions were underway regarding possible revisions to the proposal. As a result, the future of the rule remains uncertain. Whether the Administration ultimately revises the proposal, proceeds despite the committee’s objection, or seeks legislative changes, wetlands policy is likely to remain an important issue for architects, developers, and local officials over the coming year.

Looking Ahead

Although the Legislature has adjourned, many of the year's most important issues are still unfolding. Agency rulemaking, implementation of major legislation, and continued discussions about permitting and liability reform will shape the policy landscape over the coming year.

For Vermont architects, key issues to watch include:

• Development of the Agency of Education's school construction aid program.
• Continued implementation of Act 250 reforms and housing legislation.
• Future updates to Vermont's building energy codes.
• Ongoing wetlands rulemaking.
• Renewed discussion of a construction statute of repose.

AIA Vermont will continue working with legislators, state agencies, and coalition partners to ensure that future policy supports high-quality design, responsible development, and a strong architectural profession throughout Vermont. 

Interested in getting involved? Email info@ aiavt.org to find out how you can engage with AIAVT's advocacy efforts.