2026 Legislative Session Recap

2026 Legislative Session Recap

The 2026 legislative session adjourned in the last week of May, and it was a mixed session for Cathedral Square's priorities: real progress on some fronts, less on others. As in past years, our focus stayed on the same three priorities: long-term care, affordable housing, and SASH.

Key Legislative investments in our 2026 priorities:

1. Preserve SASH –We continue to work closely with the state Agency of Human Services to secure funding for SASH through the Rural Health Transformation Program, a federal grant aimed at offsetting recent Medicaid cuts, particularly in rural areas. Vermont received substantial funding through this program this year, with the potential for similar support in future years. We expect to learn more about SASH funding for 2027 later this fall.
2. Investment in Affordable, Service-Enriched Housing – Full base funding of $37.6M was allocated to the Vermont Housing and Conservation Board (VHCB), with strong support from legislators across the political spectrum for this essential funding source. However, no additional one-time funding was included this year, which will likely slow the pace of affordable housing production as construction and wage costs remain high.
3. Medicaid Funding for Assisted Living/Long-Term Care – Building on last year's work, Enhanced Residential Care (ERC) Tier 1 rates were restored starting April 1, 2026, and this increase has been carried forward into next year's budget. A 1% increase for Medicaid providers was also included in the current budget.

One disappointment this session was the failure of the Landlord Tenant bill (H.772), which included provisions important to Cathedral Square and the broader nonprofit housing network. We'll continue working with partner organizations to find common ground ahead of next session.

As always, we are grateful to work alongside partner organizations through coalitions such as the Long-Term Care Crisis Coalition, the Housing and Homelessness Alliance of Vermont, and the Vermont Housing and Conservation Coalition. We also thank the Legislature and the Administration for their continued support of our priorities.