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Federal funding freezes leave Vermont projects, nonprofits and schools facing uncertainty, delegation staff tell state committee
Summary
State directors for Senators Bernie Sanders and Peter Welch and for Congresswoman Becca Ballant told the Senate Committee on Government Operations that a range of federal programs have paused funding, creating cash-flow and planning risks for Vermont governments, colleges, nonprofits and infrastructure projects.
State directors for Vermont's federal delegation told the Senate Committee on Government Operations on Feb. 13 that multiple federal funding streams have been paused or frozen, leaving state agencies, nonprofits and higher-education institutions uncertain about whether they can proceed with contracts, draw down reimbursements or complete planned work.
"We've heard from B TRANs, and we're on it and trying to help as best we can to get the money flowing again," said Catherine "Katie" Vanhayst, state director for Senator Bernie Sanders. "We don't know — predicting anything is like a fool's errand at this point," added Ryan McClellan, senior adviser for Senator Peter Welch, describing the pattern of sporadic freezes across programs.
The pause affects a wide range of programs discussed in the hearing: federal electric-vehicle infrastructure money (NEVI), transportation and local carbon-reduction grants, Title I education funds, federal grants to colleges (an example cited: a NIST grant with roughly $5,000,000 remaining to spend), and grants to nonprofits including federally qualified health centers and refugee-service organizations. Committee members said nonprofits and school districts are reporting immediate planning and staffing impacts; some districts are considering layoffs because they face budget uncertainty.
Why it matters: many federal grants operate on a reimbursement model. As David Scherer, state director for Congresswoman Becca Ballant, explained, "they still need to draw down that money with some frequency and regularity," and if reimbursements stop, grantees may have to front expenses they cannot cover. McClellan gave a concrete example: a higher-education institution told him it had about $5,000,000 left to spend on a NIST-funded project and faced the choice of returning the funds or risking outlaying money with no guarantee of reimbursement.
Committee members pressed the delegation staff for guidance. Vanhayst and others recommended that affected organizations document impacts and coordinate with the Vermont Attorney General's office because some program interruptions are the subject of court proceedings. "Those legal proceedings then need to be followed and upheld," Vanhayst said, noting the litigation creates additional uncertainty about timing and outcomes.
Committee members asked specifically about NEVI electric-vehicle charging funds; staff answered that the program funding appears to be paused and that decisions have been sporadic and unpredictable. "It is hard to imagine — it's hard to know when and if it will turn back on," McClellan said. The staff described the pattern as random across programs and said they are working with state agencies to help where possible.
The delegation offered to return with a broader public update for the committee and for local town meetings once schedules align. "We are looking at the potential to do something remotely," Vanhayst said, adding the offices are coordinating to provide more specific information as it becomes available.
Less-critical details: staff urged constituents and local officials to continue contacting the delegation's offices for casework and to compile clear data on local impacts to share with state officials and in litigation.
The committee did not take formal action during the session.
