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VTrans proposes reinstating pre‑IIJA payback rules for cancelled municipal grants
Summary
Agency of Transportation staff told the committee they want to remove Federal Highway language from grant repayment provisions so grants executed after passage would require payback if a municipal project is cancelled; the change is aimed at preventing funds from remaining encumbered and to recover state and federal money for other projects
Agency of Transportation staff and the committee discussed draft T‑bill language (section 3) aimed at clarifying payback requirements when municipal projects funded with state and federal grants are cancelled.
Jeremy, chief engineer for the Agency of Transportation, told the committee the proposal removes references to Federal Highway exceptions introduced after the Infrastructure Investment and Jobs Act (IIJA) so that repayment provisions in grant agreements align with the agency’s longstanding practice. “This basically just goes back to PIIJA conditions. This is not like a new effort. This just is what the status quo has been,” Jeremy said.
Committee…
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