House Transportation staff walk through FY2026 T‑bill; major proposal adds rail‑trail rules and updates rail banking language

Damien Leonard, Legislative Counsel to the Vermont Legislature, walked the House Transportation Committee through an early draft of the fiscal 2026 transportation (T) bill on Thursday and highlighted several policy changes the committee will consider, including a new statutory framework for state‑owned rail trails.

"It essentially says that the general assembly is adopting the proposed fiscal year, 2026 transportation program, as amended by the act, to the extent that federal, state, and local funds are available," Damien Leonard said as he opened the committee briefing. He told the committee the draft is intentionally short at this stage and that more line‑item funding language will be added as the bill advances.

Why it matters: The draft includes both programmatic finance language and several policy amendments that could affect municipal obligations, the state’s handling of rail corridors placed in rail bank status, and the Authority and procedures for the Transportation Board. The most extensively discussed piece during the session was a new Section 3408a that would add a set of prohibited activities and sponsor authorities for interim trail use of state‑owned railroad right‑of‑ways.

Key bill items discussed

- Adoption of FY2026 transportation program: Leonard said Section 1 carries standard annual language adopting the proposed program "as proposed" with later "as amended" line items for any committee changes.

- Relinquishment of part of Vermont Route 36: The draft authorizes the Secretary of Transportation to reach an agreement with the town of St. Albans to relinquish a section of VT Route 36 (beginning just east of the Black Bridge through Mile Marker 2.834, including westbound approaches at St. Albans Bay area access). Leonard characterized this and other policy sections as proposals from the Agency of Transportation (AOT) for committee review.

- Recovery of funds for canceled locally managed projects: The draft expands language so…