Lawmakers review Section 5 ‘Building Communities Grants’ proposal as state agencies report rising demand

Buildings and General Services Commissioner Wanda Manoli told the Corrections & Institutions Committee on Tuesday, Feb. 4, that Section 5 of the capital bill contains the Building Communities Grants Program and that state agencies are recommending continued funding for multiple subprograms in FY2026 and FY2027.

The proposal funds several competitive, locally driven grant programs administered by different state agencies. Manoli said the Department of Buildings and General Services (BGS) administers the Recreational Facilities Grants, Human Services and Educational Facilities Grants, and the Regional Economic Development Grant Program and that each awardee may receive up to $25,000 and must complete their project within two years.

The Building Communities Grants bundle funds small capital projects in municipalities and nonprofit organizations, including recreational improvements, human‑service facilities, historic preservation, barn repairs and cultural facility upgrades. Manoli said the program is governed by statute and by multi‑member committees that include legislative and community appointees; she identified the statutory committee guidance as Title 24, Chapter 137.

Manoli said BGS received 114 applications across the grants in 2025 totaling more than $1,800,000 in requests. For the Recreational Facilities Grant specifically, the department requested $250,000 for FY2026 and the same amount for FY2027. Manoli illustrated past awards: a $12,500 dog‑park award in Brandon, a $6,000 contribution to the Lamoille Valley Rail Trail in Johnson and a $25,000 award to create a roller rink at Leahy Park in Burlington.

Deputy Commissioner Emily Cissicki (BGS) confirmed that applications and instructions are posted on the BGS website and that the department aims to keep application forms simple because many applicant organizations rely on volunteers rather than professional grant writers. She said applications are typically distributed in July or August and then routed to the committee that matches each grant’s mission.

Caitlin Quarkins of the Division for Historic Preservation summarized two programs her division administers within the Building Communities Grants package. The Historic Preservation Grant Program is a 50/50 matching grant up to $20,000 for municipalities and nonprofit organizations working on buildings listed in or eligible for the National Register of Historic Places; the governor’s recommended budget proposes $250,000 for FY2026 and $250,000 for FY2027. Quarkins said the preservation program has funded more than 670 projects statewide and distributed more than $7 million since inception. The Barn Grant Program, also administered by the Division for Historic Preservation, provides matching grants up to $20,000 for repair and restoration of historic agricultural buildings and the budget recommendation is $250,000 annually; Quarkins said the program has funded more than 500 projects totaling over $5 million since it began in 1992.

Susan McClure, Executive Director of the Vermont Arts Council, described the Cultural Facilities Grants, also part of the Building Communities Grants package. The Arts Council’s program funds facility projects that support cultural activities (projects such as rewiring, accessibility upgrades, environmental controls and hazard mitigation). Grants range from $1,000 to $30,000 and require a 1:1 match. McClure said demand has increased sharply in recent years — a 65% increase in dollars requested and a 40% increase in applications over the past three years — and that the governor’s recommended budget level of $250,000 falls short of the historic $300,000 funding level the Council has previously administered.

Several committee members asked clarifying questions during the hearing about program splits and the budget book. Manoli and staff noted a typographical error in the committee’s printed book (page 14) affecting the human services/education line items and confirmed the spreadsheets and slides used in testimony reflected the correct funding figures.

Why this matters: the Building Communities Grants program is designed to provide modest capital support that local volunteer groups and small nonprofits cannot otherwise access. Agency staff emphasized that most successful applicants provide matching funds and that the program’s modest state awards frequently leverage larger local investments. The agencies recommended continued appropriation for FY2026–27 across the subprograms while noting demand remains well above available funds.

Ending: Committee members said they would return to the item as they review the capital bill; agency staff offered to provide corrected binder pages and additional details on committee membership and application timelines upon request.