Secretary of State outlines risks to election, archival and appraisal grants; HAVA fund may sustain operations through 2027

Deputy Secretary of State Lauren Hibbert told the House Appropriations Committee on April 15 that several federal grants the office uses for archival work, professional regulation IT upgrades and election administration face uncertainty and could require the office to supplement or scale back programs if funding is not renewed.

The committee heard that small grants from the National Historical Publications and Records Commission (NHPRC) — roughly $40,000 a year — support the office's roving archivist work; an Appraisal Subcommittee (ASC) grant of about $120,000 has funded IT integration for the Office of Professional Regulation; and Help America Vote Act (HAVA) resources provide the bulk of the elections division's operating capacity.

"We have 2 FTEs that do this work, and these 2 grants combined cover about half of 1 of those FTEs," Hibbert said of the NHPRC awards. She described the archivists' work as highly technical and pivotal after flood events and other record-damaging incidents. The NHPRC-funded staff help municipalities and local historical societies preserve records and respond to disaster recovery needs.

Hibbert said the ASC grant is project-based and used primarily for IT upgrades and data feeds that report licensed professionals to the federal Appraisal Subcommittee. "We have been using this money approximately $120,000," she told the committee, and said the office was roughly halfway to three-quarters through the current project and would continue to use remaining funds if available.

On elections funding, Hibbert described HAVA as the office's most critical federal source. Vermont typically receives the small-state minimum (about $1 million per year); the office reports a current HAVA fund balance of $6 million derived from interest after having spent the principal. Under the most recent continuing resolution, Congress appropriated $15 million to the Election Assistance Commission (EAC), which translates to a Vermont allotment near $272,000 under the small-state minimum formula. "We are being told to not anticipate funds," Hibbert said, adding that the EAC appropriation had been cut substantially from prior years.

Hibbert reviewed how the office uses HAVA and related resources. Historically HAVA and the Secretary of State Services Fund together supplied roughly 60% of the elections division budget. The office's elections division budget runs about $5 million annually, and Hibbert said a universal vote-by-mail general election costs about $1.5 million; ballot printing alone is roughly $700,000. At the current burn rate and under conservative assumptions, Hibbert said HAVA-derived funds could support the division through fiscal year 2027, but she warned that if Congress ceases or sharply reduces appropriations the office would need to request supplemental state funding.

Hibbert also noted federal policy changes that could affect eligibility for funds. She cited recent federal executive actions and the "SAVE Act" language as reasons the state should not assume HAVA or other election assistance will continue at prior levels for jurisdictions that operate universal vote-by-mail systems.

Committee members asked about what programs or positions would be scaled back if grants end. Hibbert said the archivist positions are on a triage footing and losing funds could reduce staffing and community outreach. On HAVA, she said the office has historically received occasional legislative supplements for presidential years but that the federal minimum has not met operational needs in high-demand cycles.

"We will not be able to continue at our current state without those funds. They're really critical to us," Hibbert told the committee.

The committee did not take formal action during the session. Members indicated they would follow up with the Secretary of State's office and monitor federal appropriations for election assistance and related grants.

The office also signaled concerns about the Secretary of State Services Fund, which relies on business filing fees and would decline if filings drop during an economic downturn.

The hearing continues with other agencies scheduled on subsequent days.