McLaren: Fixing Act 181’s fundamental flaw
April 22, 2026 | By Ryan McLaren
Act 181 revealed a fundamental inequity in policy from Montpelier – wealthy, urban communities get a choice. Rural or poor communities don’t.
Montpelier must fix it.
As a result of Act 181, my hometown of Essex Junction can opt in to Act 250 exemptions that will allow our city to rapidly build housing, give working families more economic opportunity, increase our tax base to support education funding, and meet our environmental goals.
But in Barnet, in the Northeast Kingdom where my grandparents lived, residents have no such choice on significant portions of their land. Not only are they excluded from the growth incentives in highly desirable areas like the village, but anyone outside of a village area can be thrust into an antiquated and expensive permitting process. Worst of all, Barnet could not even choose to opt in.
This is a fundamental flaw in Act 181’s design: Some communities get to decide for themselves whether or not they want to participate in achieving Vermont’s essential goals around housing and environmental conservation, while others will have that decision made for them. The bill has inflamed divisions in our state between the haves and have-nots, between urban and rural areas.
Rural communities are just as eager to protect their natural treasures and conserve critical natural resources as everyone else. The decision about where and how to do that can only be made in conversation with the communities themselves. We’ll never meet our housing or environmental goals if we further divide rural Vermont from more populated places or disempower low-income regions.
Vermont’s House Committee on Environment is poised to correct this fundamental unfairness and rework Act 181 with rural voices front and center. I applaud that decision, and urge the Vermont Senate to do the same. Their work, and the efforts of Vermont’s Rural Caucus, are great examples of genuine leadership. But this all happened because people like Neil Ryan and thousands of everyday folks organized, used their power, and made change. That is what our democracy is all about. At a moment of existential threat to our democracy, the work of these citizens and the action taken by our legislature is an example that provides something we all need – hope.
But in the end, hope is only a starting point. There is more we can do to help realize the promise of Act 181 – thriving Vermont communities and ecosystems:
Tier 1: Well-designed land conservation is essential but not sufficient. We also need to allow rural communities to take advantage of the incredible housing incentives of Act 181. If we are going to preserve rural education and fill our schools with kids and families, we need to ensure rural communities can move up the ladder into Tier 1 in the places where it makes sense. Rural economic life depends on both our conservation and our housing efforts working together.
Invest in incentive-based conservation: I am proud that the McLaren family farmland in Barnet is conserved in perpetuity. But previous generations of my family were compensated for that effort. With cuts to essential federal land conservation programs, Vermont needs to expand funding to make sure the Tier 2 communities stewarding our land for future generations are compensated for their service to our shared ecosystem.
Consistent, predictable, and fast permitting: While Act 181 changes what might be subject to Act 250 review, there is still work to do to modernize our Act 250 process to ensure equity, encourage appropriate expansions of housing, and meet our environmental needs.
Repeal and revisit the Road Rule: This rule impacts everyone equally, and not in a good way. There is consensus across the board that we need a new approach to this regulation.
Energy as conservation policy: We have to ensure the state is able to rapidly deploy clean and renewable energy to lower costs for families and support Vermont’s land-based economy – outdoor recreation, agriculture, and tourism. Solar and wind are the cheapest energy on the planet and options like plug-in solar give Vermonters more options for having renewable energy at their home.
Create a state land bank: Land banks are used across the country to reduce the cost of acquiring land for either housing or conservation. By working with communities and partnering with Vermont’s incredible non-profit housing and conservation organizations, a state land bank can help deliver better outcomes in housing and land use.
Vermont’s future will depend on communities large and small investing in housing and environmental protections. We can work together to make Vermont what it ought to be – the best place in the world to raise a family, start a business, and build a life. If we don’t, Vermont will become a theme park – a viewshed preserved in amber for the well-off, while working people struggle to survive.
But our future also depends on trust. We need each other, and we all do better when we all do better. For Barnet to thrive, we need Burlington to thrive. And vice versa. That means building housing and conserving precious natural resources in ways that empower local communities, fill our schools with kids and help Vermont lead the nation in environmental stewardship. Act 181 represents a monumental change to land use regulation. It is a tremendous opportunity to both build Vermont’s future and rebuild the bonds between us. I believe repealing and revisiting the most challenging aspects of this law can lead us down that path.
Ryan McLaren of Essex Junction is a Democratic candidate for lieutenant governor this year.