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Gov. Phil Scott vetoes state budget adjustment again as motel disagreement remains unsolved

Gov. Phil Scott speaks during his weekly press conference at the Statehouse in Montpelier on Wednesday, April 2, 2025.
Glenn Russell
/
VTDigger
Gov. Phil Scott speaks during his weekly press conference at the Statehouse in Montpelier on Wednesday, April 2, 2025.

This story, by Report for America corps member Carly Berlin, was produced through a partnership between VTDigger and ¿ªÔÆÌåÓý.

For the second time this year, Gov. Phil Scott has vetoed a midyear spending bill, likely capping off a weeks-long standoff with Democratic legislators over Vermont’s motel voucher program.

Scott vetoed lawmakers� second attempt at the annual budget adjustment bill on Friday afternoon.

“It’s clear, we’re at an impasse on a non-budget adjustment-related policy, which has once again, been included in the latest budget adjustment bill,� Scott wrote in his veto message. “However, nothing prevents us from moving forward with a traditional bill, where we agree on the majority of the mid-year financial true ups.�

In mid-March, Scott struck down lawmakers� initial budget adjustment bill, citing a desire to hold off on increased state spending and his disapproval of a three-month extension the bill sought to give all unhoused Vermonters living in state-sponsored motel rooms during the winter months.

Democratic leaders in the Legislature then agreed to punt on the funding in question, but stood by their request to extend the voucher program’s eased winter rules through June 30. Lawmakers proceeded to advance a new version of the budget adjustment bill � but it stalled amid Republican opposition and did not pass in time to head off a new wave of evictions from motels, which began on April 1.

While Scott emphasized the program’s hefty expense and ineffectiveness, he used an executive order to protect a narrow group of individuals � families with children and people with acute medical needs � from losing their motel vouchers ahead of the April 1 cliff.

The top lawyer for the Legislature called the order an act of executive overreach and an “unconstitutional consolidation of power.�

Scott’s second veto appears to bring this acrimonious chapter to a close. The chiefs of staff for Speaker of the House Jill Krowinski, D-Burlington, and Senate President Pro Tem Phil Baruth, D/P-Chittenden Central, confirmed Monday that lawmakers do not plan to attempt passing another version of the budget adjustment bill. Legislators have instead turned their focus to hashing out the budget for the coming fiscal year.

Members of Scott’s administration told legislators last week that they had already begun making preparations in case no budget adjustment bill made it to the finish line.

Carly covers housing and infrastructure for ¿ªÔÆÌåÓý and VTDigger and is a corps member with the national journalism nonprofit Report for America.

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