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Thursday, April 10, 2025

Vermont proposes funding for small businesses amid workforce challenges

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Matthew Merritt | LinkedIn

Matthew Merritt | LinkedIn

The Vermont legislative session began on January 5, with Governor Scott delivering his State of the State Address. The Governor emphasized the importance of addressing workforce challenges in Vermont, stating, “… whether it is training and recruitment, childcare, tax policy, housing, healthcare, infrastructure, or climate change, we must reverse our workforce trends.” He highlighted that Vermont has received significant COVID-19 financial relief from the federal government. Of this aid, $600 million was allocated to community transformation projects across the state.

Governor Scott has proposed a $180 million investment in new affordable housing initiatives as part of efforts to tackle workforce shortages. Additionally, Vermont set aside $350 million from federal funds for business relief. Although a previous proposal for $26 million in direct business grants did not materialize last year, changes are underway to facilitate small businesses' access to these funds through the Senate Economic Development Committee.

The legislature is also considering measures related to labor laws. These include potential increases in minimum wage and unemployment insurance benefits and expansion of paid leave. Hearings on these topics were scheduled for February 18 in the Senate Economic Development Committee.

Further legislation could impact employer-employee relationships by introducing mandates such as reliable work schedules and equitable pay ratios. Other proposals involve reimbursement of employee expenses and employer-funded electric vehicle charging stations.

In terms of retail theft legislation aimed at reducing shoplifting incidents has stalled due to the belief that existing laws suffice if enforced locally.

The Vermont Department of Labor offers resources for employers looking to fill open positions. Employers can use platforms like Vermont JobLink and newsletters from the department to connect with job seekers and stay informed about labor-related updates.

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