Where the Money Goes: Vermont’s FY25 Budget Sends Millions to NGOs—But Fails to Name Names

Where the Money Goes: Vermont’s FY25 Budget Sends Millions to NGOs—But Fails to Name Names

Vermont’s $8.6 billion state budget for fiscal year 2025 is law. Known as the “Big Bill,” H.883 lays out funding for everything from education to health care, housing, and environmental programs. But a closer look reveals something missing: clarity about who, exactly, is getting paid.

Scattered throughout the 200+ page budget are hundreds of references to funds being directed to “community-based organizations,” “designated agencies,” “regional partners,” or “culturally specific providers.” Nowhere in the law are the actual recipient organizations named.

This lack of transparency raises questions at a time when the state faces growing pressure to demonstrate fiscal accountability and streamline overlapping services.

Millions Approved for Unnamed Nonprofits

The Big Bill authorizes state agencies to distribute millions of dollars to external groups for a range of services—everything from emergency shelter construction to translation services to youth homelessness prevention. While those goals may seem worthwhile, the budget language provides no detail on which organizations will carry them out or how their success will be measured.

For example:

  • $8 million is appropriated to fund and expand emergency shelter infrastructure statewide, including capital projects for populations “not currently eligible for emergency shelter through General Assistance.”
  • $2.9 million is earmarked for “community-based organizations” to support “youth at risk of homelessness.” The bill doesn’t say who these organizations are or how “at risk” is defined.
  • $1.25 million is set aside for statewide “language access work,” including translation and interpretation services for public-facing agencies. Again, no specific contractors are named.
  • $400,000 goes toward education equity and anti-racism work, with a preference for organizations led by “BIPOC individuals or historically marginalized persons.”

Even major recurring nonprofit grantees like the Vermont Housing and Conservation Board (VHCB) and Vermont Student Assistance Corporation (VSAC) appear in multiple sections under different program areas, often without context for how funds will be coordinated across departments.

The Vocabulary of Vagueness

Across dozens of pages, phrases like “community-based partners,” “designated agencies,” “trusted messengers,” and “regional service providers” appear in place of hard details. While some of these may refer to established entities under contract with the state, the law itself does not identify them. In many cases, agencies are given broad discretion to select partners after the budget is passed.

This stands in contrast to how budgets are handled in other states. Some jurisdictions publish appendices listing grant recipients or require reporting within the bill text itself. Vermont does not.

The result is that hundreds of millions of taxpayer dollars are committed—without the public being told where the money is going, what it’s meant to accomplish, or how success will be evaluated.

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Duplicative Spending?

The opacity also makes it difficult to determine whether funds are being duplicated across programs.

For example, housing-related services appear in the budgets of the Department for Children and Families (DCF), the Vermont Housing & Conservation Board, and the Vermont Housing Finance Agency (VHFA)—sometimes with overlapping missions and similar target populations. Mental health, substance use, and eldercare services are similarly scattered across multiple departments and their sub-grantees.

Because the bill uses vague descriptors rather than identifying specific entities, it’s impossible to assess whether multiple agencies are contracting with the same nonprofits for similar services—or whether these funds are even reaching new or under-resourced communities.

No Audit Trail in the Law

The Big Bill does not require public disclosure of subgrants or third-party contracts. Nor does it tie appropriations to performance benchmarks, delivery deadlines, or independent evaluation. While some agencies may include these requirements in contracts they sign after the fact, those details are not part of the legislative record.

That means lawmakers voted to spend millions on unnamed third-party organizations with no assurance to taxpayers that the money will produce measurable results.

Calls for Reform

Good-government advocates have long called for more transparency in Vermont’s nonprofit funding pipeline. Proposals have included publishing a centralized list of grant recipients, requiring agencies to report performance outcomes, and mandating conflict-of-interest disclosures for state officials with ties to grantee organizations.

So far, those ideas have not advanced in the legislature.

With the FY25 budget now law, transparency will depend on watchdogs, media, and citizens requesting public records and tracking outcomes themselves.

Bottom Line:
Vermont’s FY25 budget funnels millions into a web of unnamed nonprofit organizations. The lack of detail in the law makes it difficult to know who’s getting paid, what services are being delivered, or whether public funds are being spent wisely. At a time when the state faces budget pressures and growing scrutiny of government programs, transparency remains elusive.

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Dave Soulia | FYIVT

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2 responses to “Where the Money Goes: Vermont’s FY25 Budget Sends Millions to NGOs—But Fails to Name Names”

  1. H. Jay Eshelman Avatar
    H. Jay Eshelman

    The Vermont budget may not list the NGO recipient’s names. But it’s possible to reverse-engineer the cash flow to these various non-profits if you can identify them.

    For example, Vermont’s Public Utilities Commission launders millions of dollars through the efforts of the Vermont Energy Investment Corporation (VEIC – aka Efficiency Vermont). VEIC has annual revenues of approximately $125 Million, 90% of which pays the wages and benefits of VEIC’s employees.

    Rebecca Foster (VEIC Chief Executive Officer), for example, was paid more than $330 Thousand annually in wages and benefits.

    Further digging shows that more than $102 Million of VEIC’s $125 million annual revenue comes from an entity named ENERGY EFFICENCY UTILITIES. Dig a little further and you will see that ENERGY EFFICENCY UTILITIES is an arm of Vermont’s Public Utilities Commission (the PUC).

    Keep in mind that the PUC’s annual budget (reported by the State of Vermont) is only $5.14 Million annually. And yet the PUC provides the Vermont Energy Investment Corporation with $102 Million annually.

    Go figure.

    VEIC is just one example of a private, Vermont, non-profit NGO redistributing various financial cash flows. VEIC claims to have ‘saved’ $3.3 Billion in energy costs by arranging low-interest loans, weatherization services (paid for by Lord knows who), rebates, and so forth. The question is, however, how much financial assistance did VEIC arrange in order to save that $3.3 Billion? And who paid for it?

    DOGE…. we need you in Vermont.

  2. H. Jay Eshelman Avatar
    H. Jay Eshelman

    Postscript: There’s a reason this nebulous financial accounting in Vermont goes unabated. The Vermont legislature is complicit. And it has been, until last November, virtually impossible for voters to elect candidates with integrity. Why? Because Vermont is one of the three worst States in the U.S. for providing election security.
    https://granitegrok.com/new-england/vermont/2025/06/macdonald-is-vermont-the-worst-state-for-election-integrity

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