Lawmakers Review Budget Alignments, Environmental Grants, Education Funding Formula and Data Center Proposals in Multiple Committee Hearings
State agencies and legislative committees on Feb. 5 presented detailed budget adjustments, program changes and regulatory proposals across Human Services, Environment, Education, Energy and other panels. Testimony focused on reallocations between special funds and general funds, tapering federal grants, adult education funding formulas, proposed data center oversight and reporting, infrastructure project financing and several statutory changes affecting housing, agriculture and professional regulation.
Human Services
Department of Children and Families and related Human Services witnesses outlined a series of budget realignments tied to Act 76. Committees were told the department discovered a duplicate appropriation of $2,500,000 for the childcare special fund that had also been included in the tax department budget; the department said it will reduce special fund spending authority and backfill the program from the general fund to align with economist projections. The Child Development Division’s EITC swap was described as a $15,000,000 transaction used to meet maintenance‑of‑effort requirements for TANF.
Witnesses described one‑time and base funding proposals, including a $1,000,000 increase to support a crisis stabilization program, a $4,000,000 request for continued one‑time funding for the temporary Red Clover secure treatment facility, and a $6,000,000 one‑time proposal for shelter expansions. The testimony identified program reductions and eliminations: a proposed 50% reduction to the nurturing parent program, elimination of a $200,000 Post Adoption Consortium line that spent $2,000 last year, and cuts to two Family First Prevention Services Act programs described as not operationalized and not enabling additional federal revenue drawdown due to an absent CCWIS system.
Human Services testimony also addressed operational items including a multi‑vendor procurement average estimate of $30,000,000 over five years for an unspecified project and a $1,000,000 of federal weatherization funds aligned with a Department of Energy award. Department officials reported activity on fingerprint‑supported criminal background checks for childcare, including a request for information from the Agency of Digital Services on digital solutions.
Environment
The Agency of Natural Resources reported a proposed overall budget just under $300,000,000 and identified roughly a $42,000,000 reduction from the current fiscal year largely tied to a tapering of federal grants, contracts and loans. The Department of Environmental Conservation’s budget was described as declining from about $245,000,000 in fiscal year 2026 to roughly $202,000,000 in fiscal year 2027, reflecting the winding down of Infrastructure Investment and Jobs Act pass‑through funds.
Officials detailed federal funds and revolving loan activity, saying the Clean Water Fund runs nominally a little over $30,000,000 a year with a portion to be bonded and that drinking water and clean water state revolving loan funds will continue to cycle through lending programs. Testimony noted a rescission of approximately $2,200,000 in USDA NRCS technical assistance funds that had been obligated to third‑party contractors as of Sept. 30, 2025. Act 27 was referenced in materials provided to the committee.
Agency staff flagged reductions in one‑time contract lines, including cuts to groundwater remediation and PCB testing/indoor air sampling contracts, and said some previously appropriated funding for PCB work is already committed to specific schools with no additional budgeted funds for fiscal 2027.
Education
House Education reviewed reports prepared under 2025 Act 27 related to adult education funding. Committee staff and agency witnesses presented the report process, which included stakeholder convenings and multiple scenarios for allocating the established statutory funding formula in 16 VSA §411F. The testimony said there was consensus that the statutory funding formula is adequate and appropriate on current assumptions, while noting continued discussion about distribution within the pot. The committee heard that the Agency of Education recommended maintaining the current model through the existing federal grant cycle, and the Agency of Administration presented compromise scenarios and stakeholder engagement that informed recommendations. Bills S.14 and S.300 were listed among materials associated with the committee’s discussion.
Energy & Digital Infrastructure and Data Center Proposals
Two Energy & Digital Infrastructure sessions addressed legislative trends and proposed rules for data centers and related infrastructure. Panels reviewed examples from other states and discussed legislative tools including establishing a separate utility customer class or tariff for large loads/data centers, requiring PUC development of standardized tariffs, and imposing contract terms to protect other ratepayers from interconnection and infrastructure costs.
Committee materials and testimony described several proposed reporting and permitting provisions. Presentations noted proposed reporting requirements for data center owners to submit quarterly water and energy usage reports and for the Department to submit annual narrative reports to standing committees addressing energy, environmental and economic impacts and benefits to ratepayers. The committee examined provisions modeled after existing permits for generation and transmission, including criteria that would be considered before issuing a certificate of public good or similar authorization.
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Hearing testimony referenced multiple bills in the Energy committee materials, including H.2, S.132, H.77 and H.1 as context for state legislative trends on large loads, interconnection cost allocation and establishment of customer classes. The Office of Professional Regulation and other witnesses discussed contractor registration thresholds tied to a bill cited as S.10, including a registration trigger at $10,000 for individual work.
Corrections & Infrastructure Funding
The Corrections & Institutions committee heard about federal funding for a major infrastructure project. Witnesses reported $40,000,000 in federal appropriations already available to the state through the Army Corps, an existing congressional authorization ceiling of $60,000,000 and an effort by the delegation to seek an authorization lift to $80,000,000. Committee materials referenced bill S.300 in accompanying discussion.
Health Care and Appropriations
The Agency of Human Services described a proposed agency budget of about $3,750,000,000 and said the governor’s proposed change includes an $86,000,000 general fund increase (6.1%). Testimony highlighted revenue offsets, caseload and utilization pressures, salary and fringe costs, and programmatic choices made to align with a 3% target in some planning scenarios. Officials listed provider rate increases including a general fund increase tied to vendor contracts; witnesses cited a $5,600,000 general fund increase for Wellpath at the Department of Corrections and other provider increases contributing to operating cost growth. The Appropriations committee also heard from the Vermont Human Rights Commission about staffing and enforcement responsibilities and the Green Mountain Care Board on system oversight and market monitoring.
General & Housing, Judiciary and Agriculture
General & Housing counsel briefed the committee on multiple pending bills that would amend ejectment and eviction procedures, shorten answer periods and create expedited hearings for certain terminations, and add an affirmative defense for ejectment actions based on serious health and safety code violations. Proposals included a statutory right to counsel provision in some draft language and a tenant’s rights advocate in DHCD contracting language.
The Judiciary committee considered amendments related to animal cruelty sanctions, periodic unannounced visits where courts impose prohibitions after conviction, and processes for seizure notices and security waivers. Materials reflected efforts to clarify discretionary and mandatory sanctions language and due process provisions.
Agriculture, Food Resiliency & Forestry addressed right‑of‑way definitions and vegetation management. Testimony summarized the department’s rules requiring integrated vegetative management plans every five years as a permitting condition and described opt‑out procedures for homeowners concerned about herbicide use along utility rights‑of‑way. Committee members discussed agriculture‑related zoning and protections, with S.2 cited in materials addressing farming and required agricultural practices exemptions from municipal bylaws for operations exceeding specified sales thresholds.
Transportation and Energy Programs
Transportation committee materials described one‑time program funding and statewide EV and charging incentives. Testimony referenced Act 148 funding allocations for multiunit, workplace and public charging categories and noted the Transportation Fund as a source for flexible community investments. The committee also received reports on village designation funding (Act 181) and the pace of project uptake under various programs administered by utilities in partnership with state agencies.
Conclusion
The article covers testimony and materials presented to multiple House and Senate standing committees on Feb. 5 related to budget realignments, federal grant tapering, program reductions and one‑time funding, adult education funding formula work under Act 27, proposed data center reporting and tariff frameworks, federal infrastructure funding status, and statutory reforms affecting housing, animal cruelty, agriculture rights‑of‑way and professional registration. Committees involved included Human Services, Environment, Education, Energy & Digital Infrastructure, Health Care, Appropriations, General & Housing, Judiciary, Agriculture, Corrections & Institutions and Transportation.
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