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Committee requests follow-up on drinking/clean-water federal IIJA funds and municipal pollution grants; noted some FY24–26 funds already allocated
Summary
Committee heard updates on IIJA drinking- and clean-water allocations, municipal pollution-control grants, and state revolving funds; staff reported that most IIJA money is already earmarked to projects and that members should follow up to clarify a $226,000 discrepancy in municipal pollution grant bond listings.
House Corrections and Institutions members received a status briefing on federal Infrastructure Investment and Jobs Act (IIJA) money in the clean-water and drinking-water revolving funds, and on state municipal pollution-control grant lines.
Staff reported that IIJA federal money for drinking and clean water (amounts for FY23–24 described in the briefing) has largely been deposited in the relevant revolving loan funds and earmarked for projects that meet federal benchmarks and timelines. Committee staff said they did not have a full public list available in the meeting but that the departments reported deposits tied to projects already in the pipeline.
On municipal pollution-control grants, the committee reviewed $4,000,000 in cash and $4,000,000 in bonds that were authorized for fiscal year 2026. Staff identified that cash allocations for a batch of projects (Burlington, Ludlow, Hinesburg, Hartford, Colchester) have been mostly disbursed, with Hartford and Colchester having modest remaining balances expected to be distributed before June 30. The committee asked staff to reconcile a $226,000 shortfall between the bonds listed on the municipal-pollution spreadsheet and the $4,000,000 total; staff said the difference may reflect project timing or pending contract closeouts and agreed to follow up with agency staff and circulate updated spreadsheets.
The committee also discussed how federal matching rules and fiscal-year timing affect the availability and use of IIJA funds, noting federal fiscal-year timing (October–September) and an 18-month application window in some federal programs. Staff said they will follow up with the relevant program managers and provide an updated project list, a reconciled spreadsheet for municipal pollution grants, and clearer detail on the use of IIJA money and any projects that remain unallocated.
Members asked three committee colleagues to follow up with agency staff to get a definitive accounting and to produce the updated spreadsheets and lists by the next meeting.
