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House panel proposes regional program to replace hotel-motel shelter funding, seeks FY25 levels
Summary
The committee signaled support for keeping FY25 funding levels for the hotel-motel emergency shelter program and directed the development of a regional, community-action-led transition-to-housing program rather than continuing the current statewide hotel reliance.
Theresa Wood, chair of the House Human Services Committee, told members on March 10 that the committee is developing a regional transition-to-housing approach intended to reduce Vermont—s reliance on hotel and motel placements for people experiencing homelessness.
Wood said the governor—s recommended budget included $30,500,000 in one-time funds for what the administration has called the GA hotel-motel program, on top of an $8,100,000 base. The governor—s proposal would total $38,600,000 for fiscal year 2026, she said, while fiscal year 2025 funding stood at $44,600,000. "We are recommending that the FY25 levels be kept and not the FY26 levels," Wood said, explaining that the committee is building a transitional program using FY25 funding levels as the operating baseline.
The committee described the new approach as a systems change: a temporary shelter-and-transition-to-housing program administered at regional scale through subgrants and coordinated case management. Wood said the committee intends to favor regional resource organizations and community action agencies to carry out the program and to prioritize family needs within regional plans. "It is intended to build a program that reduces our reliance on hotels and motels to actually have integrated case management service and a requirement to participate in case management services," Wood said.
Committee members described the plan as a year of transition to avoid abrupt resource changes while the new regional structures and subgranting relationships are put in place. Wood said the committee expects detailed legislative language and a bill (H.91) to follow so members can evaluate the new structure and regional definitions. She emphasized the need for broad buy-in from state agencies, regional partners and advocates: "It's a very, very significant systems change, and it requires a lot of buy in from a lot of people," she said.
The committee also noted that the proposed program would merge components currently run separately, including Housing Opportunity Program (HOP) grants and other shelter spending, to create a more integrated regional model. Wood said the panel will continue to refine the language and the program details as H.91 moves through the legislature.
Next steps: Committee staff will present bill language and model details to appropriators and other stakeholders; final funding levels and program design will depend on further committee negotiations and language in H.91.
