State housing officials warn federal funding cuts could stall projects, reduce vouchers and services

State housing officials told the House General and Housing Committee on April 8 that potential federal funding cuts and federal staffing disruptions could sharply disrupt Vermont’s integrated housing delivery system, leaving fewer affordable units, fewer vouchers and reduced social services for households with the greatest needs.

Polly Major, director of policy and special projects for the Vermont Housing and Conservation Board, told the committee that a recent agency review found $55,700,000 in federal funds had been committed to projects but not yet disbursed, and that 18 projects were actively under construction — creating 567 units, 162 of them intended for people experiencing homelessness — with another 13 projects dependent on those federal dollars getting paid out.

The warning grew from an overview of how Vermont’s housing system depends on three interlocking components: rental assistance, capital to produce units, and social services. "Each of these legs of the stool leverages and uses federal dollars," Major said. She and agency partners said cuts could undercut all three legs and create cross-cutting failures: fewer homes built, vouchers left unused because people can’t find housing, and a loss of services that help tenants sustain tenancies.

Why it matters: committee members were shown specific program and funding figures to explain how federal actions in coming months could ripple through state- and locally-administered programs. Major and other witnesses laid out a timeline of risk tied to federal actions this year — from a continuing resolution enacted in March through possible reconciliation-driven program reductions in summer and discretionary budget decisions that will be resolved when a new federal budget takes effect Oct. 1 — and described immediate operational risks if federal agencies lack staff to process reimbursements.

Key program stakes - Rental assistance: Major and Kathleen Burke, executive director of the Vermont State Housing Authority, described rental assistance as heavily federally financed. Major said about $81,100,000 in federal…