The start of the new year brings a wave of new laws that could impact Vermonters throughout the state.
This year’s list includes a ban on so-called “forever chemicals,” stricter campaign finance requirements, cheaper outpatient drugs and a higher minimum wage.
‘Forever chemical’ ban
A new law that bans the use of so-called “forever chemicals” in consumer products in Vermont will start to take effect Jan. 1.
The ban will be phased in over two years.
The chemicals are known as “PFAS,” and they are found in a wide range of products, including toys, cookware, carpets and clothing.
Vermont Attorney General Charity Clark says the ban is important because the chemicals can be toxic at very low levels and she doesn’t think many consumers are aware that some common products contain these “forever” chemicals.
The chemicals will be banned from cosmetics, menstrual products, food packaging and other consumer products starting Jan. 1. In July 2027, the ban will extend to cleaning products, dental floss and fluorine-treated containers, and starting in 2028, it will apply to cookware.
Minimum wage increase
Vermont’s minimum wage will increase to $14.42 per hour starting Jan. 1. This represents an increase of 41 cents. A person working a 40-hour week, for 52 weeks a year, would now have an annual salary of $29,993.
This new rate is almost double that of the federal minimum wage, which is $7.25 per hour.
Based on a law passed in 2020, the Vermont minimum wage is automatically linked to increases in the Consumer Price Index. The law was adopted, in part, to allow workers to keep pace with inflation and to avoid annual political debates on this issue.
The annual adjustment also impacts the so-called “basic tipped wage rate” for service employees. The rate for “tipped employees” is half of the overall state minimum wage — that means starting January this rate will be $7.21 per hour.
The District of Columbia has the highest minimum wage in the country with a rate of $17.95 per hour, while 20 states, including New Hampshire, have a rate that is the same as the federal wage at $7.25 per hour.
Outpatient drug prices
Starting Jan. 1, the cost of specialty drugs used to treat certain cancers and autoimmune diseases in an outpatient hospital setting will be capped. The drugs are often administered by injection or IV.
Lawmakers passed the measure after learning that outpatient pharmaceutical prices charged by Vermont hospitals were marked up twice as much as the national average, according to a 2024 report from the RAND Corporation.
The new law caps the price of these drugs to 120% of the manufacturer’s average retail price. It’s estimated that Vermont will have some of the lowest prices for these specialty prescription drugs of any state in the country.
The new law is expected to save insurers millions of dollars, bringing down rates for consumers.
While consumers will save money, hospitals say the law will reduce their net revenue and cause them to either raise prices for other procedures or reduce services to meet budget constraints.
Campaign finance disclosures
This law technically took effect in June 2025, but it will start affecting most of Vermont's political contests in 2026 because of the statewide election cycle.
Previously, candidates only needed to file a finance report if they spent at least $500 on their campaign, but the new law eliminates that threshold and requires all candidates to file a report regardless of how much they have raised or spent.
It applies to all statewide, legislative and county candidates. The law also lowers the reporting threshold from $1,000 to $500 for campaigns created to influence local ballot items, including municipal and school budgets.
Secretary of State Sarah Copeland Hanzas says the goal of the law is to give greater transparency to voters.
“This is going to provide us a more certain way of knowing that people's campaign activities are reflected in the campaign finance system so that all Vermonters can see who is spending money on campaigns," Copeland Hanzas said.
