VTrans outlines grant reset and targeted $1.5 million adjustments as providers prepare applications

Ross McDonald, a Vermont Agency of Transportation (VTrans) representative, told the House Transportation Committee on March 20 that the agency is conducting a “reset” of its transit granting process that asks providers to examine underperforming routes and administrative costs as part of draft awards for fiscal 2026.

"It was distressing to feel that, members of this committee had felt blindsided, by some recent announcements. And for that, I do apologize," McDonald said, addressing committee concern about recent public reporting and provider reactions. He described the granting process and how it differs from the annual budget cycle.

McDonald told lawmakers the agency has asked providers to take a closer look at underperforming services — he cited a recent list of 13 underperforming routes — and to propose combinations, schedule reductions or other changes that could reduce operating costs. He said the agency is targeting roughly $1.5 million in adjustments tied to underperforming routes, administrative cost allocations and preventive maintenance, not an immediate forced…