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Senate bill would require AOT to report federal funding changes to JTOC; 1% cuts trigger committee approval
Summary
Legislative counsel described language in the Senate Transportation draft that would require the Agency of Transportation to provide written updates on federal grants and to submit any expenditure‑reduction plans of 1% or more to the Joint Transportation Oversight Committee for approval.
Damian Leonard, legislative counsel, told the Senate Transportation Committee that the Senate draft would require the Secretary of Transportation or the Agency of Transportation (AOT) to submit written reports on federal funding for the FY26 transportation program on or before June 30, Sept. 30 and Dec. 15, covering reductions, rescissions or delays in federal grants and summarizing federal funding received and anticipated.
The proposal would also require AOT to describe delays in projects authorized for the FY26 program, proposed changes to those projects, whether the secretary might use the limited reallocation authority in title 19 V.S.A. §10(g), and whether any portion of the FY26 program would be subject to an expenditure reduction plan under 32 V.S.A. §704.
The change matters because an expenditure reduction plan under 32 V.S.A. §704 takes effect when a 1% reduction in Transportation Fund revenues is identified. Leonard said the Senate language would require that any plan to address a reduction of 1% or more be approved by the Joint Transportation Oversight Committee (JTOC) before implementation and would allow the secretary to request a JTOC meeting within 14 days if a sudden change in federal funding warrants immediate review.
AOT staff and senators raised process questions. Michelle Boomhower, speaking for AOT, said the agency had begun a staff review and would provide feedback on the workload and the proposed reporting dates. AOT staff noted the draft was finalized early the same day and that some items — for example the June 30 date — were proposed by counsel rather than the agency. Patrick Murphy of AOT confirmed the agency had not yet reviewed the full 1% approval language but agreed it tracks existing joint fiscal requirements.
Committee members discussed committee composition for approvals. Leonard and others noted the JTOC process mirrors joint fiscal practice; one senator observed that the chair of House Transportation is not a member of Joint Fiscal and would therefore be excluded from that specific approval step unless committee composition is adjusted. Senators also flagged the need to avoid contradictory contingency language in other larger bills (for example, an Appropriations Committee provision) and reported ongoing coordination with Joint Fiscal Office staff.
The chair asked whether the committee wanted more time to review the proposed language; members generally urged further review and directed staff to circulate the draft to AOT for comment. Leonard said the language had not been run by the agency and recommended the committee solicit agency feedback before moving forward.
Next steps: AOT will review the draft, provide comments on the feasibility of the proposed reporting dates and the operational impact of the JTOC approval requirement; the committee will consider agency feedback in a future meeting.
