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VTrans outlines uncertainty over IIJA-funded programs; NEVI at high risk, carbon and PROTECT funds more secure
Summary
Agency of Transportation officials told the Senate that new federal-administration reviews have put NEVI (electric vehicle charging) funds at high risk, while carbon reduction and PROTECT monies are presently accessible and some CRP funds have been transferred to STBG.
Michelle Boomhower, director of policy planning and intermodal development for the Vermont Agency of Transportation, told the Senate Transportation Committee that recent federal administrative actions have left some IIJA-funded programs uncertain and that the agency is actively tracking which funds remain accessible.
“We have only obligated $3,500,000.0 [of carbon reduction funds] to date,” Boomhower said, and she reported that the agency has been able to transfer certain carbon reduction monies into Surface Transportation Block Grant (STBG) funds to increase flexibility. On the National Electric Vehicle Infrastructure (NEVI) program, Boomhower said a federal pause and reassessment of the NEVI notice of funding opportunity has left the program “at high risk,” and she said the plan the state previously submitted is effectively void until new federal guidance is issued.
The nut graf: committee members sought specifics on which projects are already contracted and what would be at risk if federal guidance changes; VTrans officials said they would provide a clearer, written risk analysis to the committee and noted some projects funded through alternate sources remain underway.
Boomhower and Jayna Morse, director of finance and administration, said the only fully operational NEVI site to date is Bradford. The agency also has two additional charging sites moving forward that are funded through ARPA-derived state monies: Randolph and Wilmington.
On other federal sources, Boomhower said PROTECT (resilience) funds are accessible and that the agency prefers to leave those funds in PROTECT, where the federal share is 90% to preserve maximum federal dollars rather than transfer them to programs with a larger state match requirement. She said the agency has been able recently to transfer roughly $2.3 million in carbon reduction funds to STBG and that roughly $8 million had been transferable earlier under program guidance.
Committee members asked whether the agency has signed contracts that could leave small contractors exposed if federal rules change. Jacob (committee member) said he worries about “getting contracts out and having signed contracts with contractors… and then, based upon what we totally believe in what was passed by Congress, and then stuff comes up.” VTrans staff said they are monitoring obligations, have drawn down some formula funds, and will return with a short written update for legislators on which programs, contracts and projects are at identifiable near-term risk.
Boomhower said several discretionary grant streams (including some rail and FTA discretionary awards) have been paused and the agency will continue to assess impacts as federal guidance evolves. She agreed to return to the committee with a concise one- to three-page summary showing program status, what has been obligated or contracted, and which funding lines remain at risk.
