Governor Scott Vetoes Bill That Would Have Lowered Premiums and Property Taxes

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MONTPELIER, VT — At a time when Vermonters can't afford their health insurance and rising health care costs are pushing property taxes up at an unacceptable rate, Governor Phil Scott has vetoed S.190 — a bill that would have delivered immediate relief on both fronts.

For two years, the General Assembly has convened a weekly working group with the Scott Administration and the Green Mountain Care Board with the sole purpose of stabilizing our hospitals and our regulated healthcare market to provide meaningful relief to Vermonters. S.190 was the culmination of all our collective work.

In 2024, the Governor made property taxes his central issue, hammering the message that Vermonters' bills were climbing too fast and Democrats were to blame. S.190 was the most immediate answer to that problem to reach his desk. Health care is one of the largest cost drivers of school budgets — every dollar saved on educator health premiums is a dollar of pressure off the property tax bills that fund our schools. By lowering hospital costs right away for the individual and small-business market, as well as education-related health expenses, S.190 would have eased that pressure in year one.

The Governor vetoed it anyway.

In his veto message, the Governor invokes "fairness," arguing the savings must be spread "across all payers." But the committee ran those numbers. Spread across every commercial insurer, the savings come out to pennies — relief so thin that no Vermonter would ever feel it. S.190 concentrated the savings where the need is greatest: delivering real relief to the families and small businesses being priced out of coverage, while still easing the property tax burden every Vermonter shares.

The Governor's version of "fairness" helps no one.

If the Governor wants to talk about fairness, he should look at what Vermonters are actually living through.

“Families on the individual exchange lost more than $60 million in federal subsidies on January 1 when the Trump Administration let the enhanced tax credits expire,” said Rep. Lori Houghton, Democratic House Majority Leader. “Hospitals are now absorbing millions in uncompensated care as Vermonters drop coverage or pick plans with deductibles they can never hope to pay. S.190 was a meaningful solution to some of those pressures. This veto answers none of it.”

"For two years, the Administration sat at the table with us — week after week — to build this," added Rep. Black. "The Governor spent 2024 telling Vermonters he was the one fighting for them on property taxes. S.190 was the bill that would have actually brought those taxes down, and he vetoed it. For all his talk about taxpayer relief, this was the one measure that would have delivered it — and he said no."

"There is nothing fair about handing every Vermonter pennies while the families being priced out of coverage get nothing at all," added Sen. Ginny Lyons, Chair of Senate Committee on Healthcare. "S.190 would have lowered premiums for the people who need it most and eased the property tax pressure the rest of us are buckling under. Apparently the Governor didn't think real relief was fair."

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Rep. Alyssa Black
State Representative, Chittenden-24
Chair, House Committee on Healthcare
ABlack@leg.state.vt.us


Sen. Ginny Lyons
State Senator, Chittenden-Southeast
Chair, Senate Committee on Healthcare
vlyons@leg.state.vt.us