Vermont transportation official says federal highway, transit funding secure; NEVI charging work on hold pending new federal guidance

Jana Morse, director of finance and administration at the Vermont Agency of Transportation, told the Vermont House Appropriations Committee on April 17 that the agency has access to its federal transportation funds and has no immediate concerns for formula funding, while work on electric vehicle chargers funded through the federal NEVI program is paused pending new U.S. Department of Transportation guidance.

Morse said the agency’s federal funding picture is “great,” and that “we have access to all of our federal funds and, we have no concerns,” while explaining how different federal programs flow to the agency. She described most highway and transit money as formula funds authorized under the five-year Infrastructure Investment and Jobs Act (IIJA), which covers federal fiscal years 2022 through 2026 and expires Sept. 30, 2026.

Why it matters: federal formula dollars fund the bulk of Vermont’s capital transportation program — supporting highways, transit, rail and safety programs — and interruptions or constraints would affect project schedules and local transit agencies. The NEVI pause affects planned electric vehicle charging sites across the state and could delay other projects while the agency reviews new federal guidance.

Morse described the composition of the agency’s revenue: about 44% of the agency’s total revenue is tied to Federal Highway Administration programs, and those programs represent roughly 86% of the state’s federal transportation funds. She said those FHWA formula programs — including Highway Research and Development, Highway Planning and Construction, Recreational Trails and Federal Lands access — are appropriated under IIJA and “are not at risk.”

On staffing and reimbursements, Morse told the committee that the agency pays positions with state funds and then requests federal reimbursement for eligible charges rather than tying FTEs directly to federal grants. She said the agency requested 26 limited-service positions in 2022 tied to IIJA work; that number is reflected in current budgets but the governor’s recommended 2026 budget reduces that count to 24 after identifying two positions no longer needed.

Morse characterized the Federal Transit Administration funding largely as formula dollars that support operations, maintenance and capital for public transit agencies across Vermont, noting some grants are competitive and the state-level splits and match requirements vary by program. She said Federal Railroad Administration funding for rail is largely competitive but that the agency has had success securing grants to advance rail projects. Morse also said she has not seen cause for concern about the state’s Amtrak subsidies.

On the National Electric Vehicle Infrastructure program, Morse said NEVI funds are currently “on hold” while the U.S. Department of Transportation rewrites programmatic guidance. She paraphrased testimony by U.S. DOT Secretary Pete Buttigieg (referred to in the meeting as Secretary Duffy in error) explaining that the department intends to realign guidance after finding that only 66 chargers had been installed under the earlier guidance from the $5 billion NEVI pot. Morse noted Vermont has one NEVI-funded charger in Bradford and that the Randolph and Wilmington sites were advanced using state general funds converted from an ARPA set-aside; the remainder of Vermont’s planned NEVI projects are paused pending the updated federal guidance.

Morse told the committee the agency will not withdraw NEVI funds and will update its state plan once the Department of Transportation issues new guidance. She also said the committee will receive a full worksheet with corrected slide details and line-item clarifications.

No formal actions were taken during the presentation; the committee heard the briefing and posed questions about program risk, grant competition, staffing and timelines.

Committee members asked several clarifying questions about small-state formula treatment, competitive grants for rail and rural air service subsidies; Morse said she would follow up where she did not have immediate answers.

The agency committed to providing the committee with the detailed worksheet and to return with updates after the federal guidance for NEVI is published.