State Officials Fear Loss of Federal Funding for Vermont Transportation Projects

State officials in Vermont are grappling with the looming threat of losing federal funding for crucial transportation projects in major cities. President Donald Trump’s administration is casting doubt on the future of these initiatives, raising concerns among local leaders and contractors who were poised to undertake this work.

Michele Boomhower, the director of policy, planning, and intermodal development at the state Agency of Transportation, shed light on this uncertainty during a Senate Transportation Committee meeting. The U.S. Department of Transportation has been tasked with reviewing federal grants earmarked for projects that align with specific criteria, including diversity, equity, inclusion, climate change, environmental justice, gender, and bicycle infrastructure.

The ambiguity surrounding these reviews has put 15 grants to various municipalities and organizations in Vermont in jeopardy. These grants typically cover 80% of a project’s expenses, with local entities responsible for the remaining 20%. Even if the funding is not completely eliminated, there is a possibility that the awards could be reduced, leading to scaled-down project scopes.

Projects affected by this funding uncertainty include road and pedestrian safety enhancements in downtown Burlington and St. Albans, improvements along the mountain access road in Killington, the planned reconstruction of the Winooski River bridge, and a new pedestrian bridge over Interstate 89 in South Burlington. The potential impact on these critical infrastructure developments could have far-reaching implications for the state’s transportation landscape.

Despite the unease surrounding federal funding for these projects, certain areas of transportation funding in Vermont seem to remain untouched. However, the uncertain fate of these grants underscores the volatility of federal support for state infrastructure initiatives.

NEVI Program Cancellation Raises Concerns

One area where federal funding has already been retracted is the National Electric Vehicle Infrastructure (NEVI) program. This initiative, aimed at establishing electric vehicle charging stations in communities across Vermont, had seen limited implementation, with only the town of Bradford having operational chargers.

Boomhower confirmed that the NEVI program has been terminated, leaving the future expansion of this charging network in limbo. The abrupt end to this program underscores the challenges faced by states in navigating shifting federal priorities and funding streams for critical infrastructure projects.

Legislative Response and Economic Ramifications

In response to potential federal funding cuts, Vermont lawmakers are grappling with the implications for state spending and infrastructure development. Democratic leaders in the Legislature have proposed a compromise on a midyear spending bill vetoed by Governor Phil Scott, signaling a willingness to forego certain expenditures to reach a bipartisan agreement.

House Republicans have expressed frustration over the lack of traction on legislation, including a bill to exempt military pensions from taxation, a move supported by both parties. The economic ramifications of delayed legislative action and potential federal funding cuts underscore the delicate balance between state and federal priorities in shaping Vermont’s infrastructure landscape.

Amid these uncertainties, the broader implications of federal policy shifts on Vermont’s transportation infrastructure and economic landscape remain a focal point for stakeholders and policymakers alike. The need for sustained investment in critical infrastructure projects and a cohesive legislative response to evolving federal priorities will be crucial in shaping the future of transportation in the state.