Senate Health & Welfare weighs $10 million homelessness package, seeks municipal funding language and implementation details

The Senate Health & Welfare committee on May 14 reviewed language and budget items in H.91, a bill that would reshape state support for emergency shelter and housing services, and discussed a proposed one-time $10,000,000 appropriation for fiscal year 2026 to support community action agencies, shelter capacity and related programs.

The committee chair said the package includes roughly $5.9 million ‘‘for DCF for distribution to the community action agencies’’ and additional amounts for Bridges to Health and other system work, and that members wanted a provision to allow municipalities that host shelters to receive funding. "We know we've been hearing from our municipalities where shelters are present… there are shelters in about 6 or 7 or 8 different places, and they're the municipalities that provided services," the chair said.

Why it matters: the committee is trying to align short-term emergency housing (often motel/hotel placements) with longer-term shelter and permanent supportive housing capacity, plus to formalize regional planning and reporting. Lawmakers said the bill attempts to reduce reliance on hotel and motel rooms and to create regional goals and data reporting to measure increased shelter and housing capacity over time.

Key points from the discussion

Appropriations and allocations - Committee staff described the FY26 appropriation as a one-time $10,000,000 package. Committee discussion parsed the components: a portion for distribution by the Department for Children and Families (DCF) to community action agencies and a statewide organization; $515,000 and $500,000 line items discussed for specific distributions and system transformation; and $3,000,000 proposed for continued development of shelter capacity. - Joint Fiscal staff (as reported in committee) said the community action agencies indicated a need for about $4,500,000, with another roughly $400,000 for the network, totaling about $4.9 million; committee members noted the bill text lists a larger figure in one place and discussed reconciling those amounts. - Committee members proposed adding a dedicated $1,000,000 allocation to DCF earmarked for municipalities that provide shelter services, to be distributed upon recommendation of regional structures (referred to in discussion as the regional "cats" or "caps"). The chair said the intent was to "appropriate a million dollars… to DCF" and to include language directing DCF to work with municipalities and the regional entities on distribution and allowable uses.

Bridges to Health and service scope - Members discussed explicit language to ensure Bridges to Health funding can be used to provide health services to people experiencing homelessness. Lily Sorkinar of the Office for Economic Opportunity asked for clarity on intent: "If it is the intent of the committee to have it be for those directly experiencing homelessness, then perhaps to add that language so that we can make sure we administer that funding." The committee chair confirmed the intent was to support the organization so it can provide services to people experiencing homelessness.

Program design, standards and reporting - The bill text discussed codifying core services and requiring DCF (and the agencies) to develop and maintain standards for those services, including the operation of community-based shelters. - The committee revised reporting requirements: instead of monthly reporting, the bill proposes reports every third month (quarterly) with detailed data to policy committees and Joint Fiscal. Members asked for the reports to include counts of households transitioning to permanent housing, services received, and how increased shelter capacity affects hotel/motel use. - Implementation planning was discussed, with DCF directed to deliver two formal reports: an October report on regional assessment and implementation processes and a January 15 report addressing items such as intake and assessment processes, the role of 2-1-1 in intake, and whether verification of residency, homelessness and income should be required. Committee members repeatedly emphasized practical, ground-level input to make reporting feasible.

Intake, navigation and accountability for referrals - The committee debated language about core services that include intake assessments, diversion, housing navigation, referrals to health care, peer supports, landlord outreach, job training and other services. Several members worried that phrasing such as "cause to be offered" or broad referral language could create obligations without accountability if referred services were not delivered. A representative from Homelessness Vermont said referral-only language can fail when the referred provider does not deliver services. The committee asked staff and the department to draft language that clarifies responsibilities and accountability for making referrals work in practice.

Residency verification and program access - The January report will include a question whether intake and assessment processes should include verification of residency, homelessness and household income. Committee members expressed differing views: some described the question as legitimate when prioritizing limited resources, while others warned verification steps could become barriers for people with unstable circumstances. Senator Cummings and others urged the department and providers to bring data and field experience back in January to inform the recommendation.

Hotel/motel reduction and regional goals - Draft language in the bill states the legislature's intent to decrease reliance on hotel and motel rooms for emergency housing and to require regions to set annual goals for increasing shelter, permanent supportive housing and affordable housing, and to report how those increases translate into reduced hotel/motel use.

Process and next steps - Committee members directed staff to refine wording overnight: Katie (legislative counsel) was asked to integrate suggested edits so the committee can review a revised draft the next day. The committee chair emphasized the timeline: the bill must be out of committee no later than Friday, and members asked that DCF and others provide updated language and reporting suggestions for the upcoming meetings.

No formal votes or final actions were taken during the May 14 session. The committee asked for revised bill text and for DCF to return with implementation and reporting recommendations at the next meeting.

Sources and attributions - Quotations and attributions come from committee remarks during the May 14 Senate Health & Welfare meeting, including committee chair remarks, Katie (legislative counsel), Lily Sorkinar (Office for Economic Opportunity), Homelessness Vermont, and joint fiscal staff as noted in the transcript. The committee did not adopt final legislative language during the session.