Vermont defends climate superfund
Vermont pushed back in federal court this week to defend its new ‘climate superfund’ law aimed at forcing fossil fuel companies to pay for climate damages — the state argues it can seek compensation to fund resilience work that often aids low‑income and immigrant communities. The move comes as the Vermont House also passed a budget bill routing disaster aid to the Northeast Kingdom, signaling lawmakers are tying legal and budget tools to post‑disaster recovery. ( )
Attorneys presented arguments on March 30, 2026, in the first federal court challenge to Vermont’s Climate Superfund Act in Rutland as the Justice Department and industry groups pressed to void the law. (nrdc.org) (nrdc.org; mynbc5.com) The United States filed the suit on May 1, 2025, and the Justice Department later moved for summary judgment, saying the statute would impose what it called multi‑billion‑dollar liability on certain fossil fuel companies. (clearinghouse.net) (clearinghouse.net; justice.gov) Industry plaintiffs that sued Vermont in late 2024 include the U.S. Chamber of Commerce and the American Petroleum Institute, joined by a coalition of states and business groups that argue the law is preempted or violates the Constitution. (pillsburylaw.com) (pillsburylaw.com; nfib.com) Vermont’s filings and supporting amicus briefs told the court the statute is a lawful tool to recover adaptation costs and to fund resilience projects that directly support communities harmed by floods and extreme weather. (vermontlaw.edu) (vermontlaw.edu; climatechange.vermont.gov) Separately in Montpelier, the Vermont House passed a $9.3 billion FY‑2027 spending plan that directs $1.34 million to the Community Resilience and Disaster Mitigation Fund for the Northeast Kingdom after FEMA denied federal disaster aid. (vtdigger.org) (vtdigger.org; vermontbiz.com) The House budget also includes targeted supports such as a $300,000 grant to Vermont Legal Aid for an immigration attorney and expansion of weatherization and homelessness programs, signaling lawmakers are pairing legal defense of the Superfund with state spending for vulnerable and immigrant populations. (vermontbiz.com) (vermontbiz.com; vtdigger.org)
