Agencies tell Human Services committee existing programs fall short on housing; DOC, DMH, DOH outline gaps and supports

The House Committee on Human Services heard presentations from the Department of Mental Health, the Department of Health and the Department of Corrections on existing housing supports for people who are homeless or at risk of homelessness and on gaps that impede exits from institutional care to stable housing.

Samantha Sweet, deputy commissioner at the Department of Mental Health, opened with the agency’s mission and outlined DMH housing supports delivered through designated agencies (DAs) and a specialized service agency (Pathways). Sweet said DMH provides pre-tenancy and tenancy-sustaining supports, case management, and limited financial assistance including CRT housing support funds and the subsidy-plus-care voucher program. "The department of mental health is to promote and improve the health of Vermonters," Sweet said, framing the agency’s housing work as part of its behavioral-health mission.

Sweet described the agency’s PATH programs (SAMHSA-funded outreach for people with serious mental illness who are experiencing homelessness) and noted Pathways contracts operate on a housing-first model serving high-need clients in several counties. Committee staff later clarified there are six PATH contracts covering seven counties with total funding of $1,323,000.

Kelly Dougherty, deputy commissioner at the Department of Health, reviewed substance-use related services that intersect with housing: outreach workers funded through opioid settlement money, harm-reduction "packs" distributed at shelters and hotels, expanded services at opioid treatment hubs, and recovery housing supports. Dougherty described the outreach program’s goal: outreach workers visit shelters, food shelves, encampments, hotels and motels to offer treatment information and harm-reduction resources. "These folks are going to shelters...they are going to the hotels, motels, you know, other places where unhoused people congregate," she said. The department reported more than 1,100 outreach contacts in FY24 and nearly 500 contacts so far in FY25.

Sweet and Dougherty both described limited funding and long waits for some supports. DMH said the subsidy-plus-care program currently has 84 active vouchers and 13 on a wait list, with Windham County accounting for about 22 voucher recipients. Housing support funds managed by DAs and Pathways are used for temporary rental assistance, security deposits, utilities and hospital step-downs, but agencies said those funds are exhausted quickly.

Nick Dhillon, introduced as the commissioner of corrections, described the department’s transitional housing and reentry work. He said Vermont’s corrections system provides geographically dispersed transitional housing but remains limited by an overall shortage of units. Dhillon flagged the Medicaid 1115 waiver change that will allow Medicaid eligibility 90 days before release, scheduled to take effect January 2026, which he said will let the state bill some services previously borne by general revenue—money that should be reinvested in reentry supports.

Committee members pressed agencies on coordination with the HUD-funded coordinated-entry system, the degree to which DA and PATH providers participate in regional housing coalitions, and whether outreach includes hotels and shelters. DMH said many DAs have housing coordinators who participate in regional meetings and can accept referrals from coordinated entry if clients consent. DOH and DMH both confirmed outreach and preferred-provider standards require assistance connecting people to housing, but emphasized services are voluntary.

The committee also debated interim General Assistance (GA) emergency housing language intended as a transition while the members continue work on H.91, a separate bill to redesign temporary shelter policy. Committee staff and Legislative Council recommended clarifying language consistent with a recent Legislative Committee on Administrative Rules (LCAR) ruling; one proposal would replace the current 80-day measure with a capacity-based limit tied to the administration’s FY26 funding scenario (the draft referenced a $44.6 million scenario yielding up to 1,437 rooms). Members expressed concern that a cap would leave some households without access while others remain in hotel placements. The draft also includes a $500,000 cap for security costs from the emergency-housing appropriation.

Members asked agencies for follow-up information on PATH geographic coverage, PATH funding and voucher counts; committee staff said DMH provided a follow-up listing of PATH contractors and counties during the hearing. The committee did not adopt final statutory changes to the GA framework in this hearing; members said the GA language will be revisited alongside H.91 and in Appropriations work.

The session closed with procedural business and scheduling for crossover week and next committee meetings.