Vermont victim-services providers warn of funding shortfalls and federal-grant uncertainty

Advocates and service providers told the Judiciary Committee on Feb. 4 that Vermont’s network of victim-services programs faces persistent funding shortfalls and new uncertainty from temporary federal actions that briefly froze grant reimbursements.

Jennifer Pullman, executive director of the Vermont Center for Crime Victim Services, told the committee the state’s victim-compensation and victim-service funding architecture is fragile and that "there's nothing left" in some of the special funds. "This piggy bank ... is the reflection of where we're at," Pullman said, describing programs that are operating with decades-old funding levels.

Why it matters: Providers said funding shortages affect 24/7 hotlines, emergency shelter capacity, legal advocacy and rapid rehousing, and that programs cannot absorb prolonged freezes in federal reimbursements. Sarah Robinson of the Vermont Network Against Domestic and Sexual Violence told lawmakers her network’s 15 member organizations rely on more than $8 million in federal funding and that community providers have been level-funded for more than a decade.

Providers gave concrete examples of service strain. New Story Center in Rutland County said it served 789 victims and their children in fiscal 2024 and that emergency rapid-rehousing reimbursements of roughly $60,000 were briefly at risk while federal portals were frozen. "If we see a reduction in funding, something will be cut," said Ava Lloyd Lanning, executive director of New Story Center.

How funding is structured: Witnesses described three main revenue streams that support victim services in Vermont: - A state victim-compensation program administered by the Vermont Center for Crime Victim Services (statutory program with federal rules) that pays certain crime-related expenses; Pullman said the program is capped at $10,000 per victim and that the fund is projected to run a roughly $500,000 deficit in the current year. - A restitution mechanism capitalized by a 15% surcharge on court fines, fees and traffic tickets; Pullman said that fund allows the state to advance up to $5,000 to individual victims pending restitution judgments. - A domestic-violence special fund established in 2008 (supported by surcharges including marriage-license fees and other court surcharges) that supports community-based domestic-violence programs; Robinson said the special fund has run a deficit most years since FY2015 and faces an anticipated $175,000 shortfall in FY2026.

Providers and committee members described downstream effects: shelters with longer stays because of scarce affordable housing, advocates carrying caseloads they called unsustainably high, and the risk that some community programs would close if federal reimbursements were not available. Robinson said Vermont Network members answered more than 22,000 hotline or chat calls last year and that some member organizations depend on federal grants for as much as three-quarters of their budgets.

On federal grant uncertainty: During a brief federal funding freeze, some nonprofit providers had large reimbursement requests pending. Robinson said the portals have since reopened but that the interruption created acute cash-flow risk for organizations that operate on reimbursement-based federal grants.

What advocates asked the committee to do: Witnesses urged the Judiciary Committee and the Legislature to consider increasing general-fund support for core victim-service roles, to examine the state’s reliance on volatile surcharge-based special funds, and to develop contingency plans for rapid backfill if federal grants change conditions. Representative committee members signaled interest in receiving an estimate of the cost to create a minimally fully funded statewide victim-advocate network not reliant on federal grants.

Ending: Committee members said they expect follow-up budget testimony and asked providers to submit detailed budget requests and contingency plans. Providers said immediate action was needed to avoid service reductions that would affect victims statewide.