Appropriations panel reviews how federal funding could affect Vermont budget adjustment

The House Appropriations Committee on Thursday heard a briefing from Emily Byrne of the Joint Fiscal Office on how federal grants and matching requirements could affect the FY2025 budget and the pending Budget Adjustment Act.

Byrne told the panel federal funding is a major part of the state budget: “federal funds make up over a third of the appropriations that are made by the general assembly,” and “in any given year, we're talking about $3,100,000,000 of federal funds coming to this state.”

The presentation aimed to give lawmakers a high-level map of where federal money flows through state government, who receives it and what budgetary risks exist if Washington changes funding levels or terms. Byrne said the briefing covers FY2025 budget numbers and is intended to help members as they build the FY2026 proposal.

Nut graf: Committee members heard that Medicaid and a handful of departments receive the bulk of federal support, and that changes in federal rules, match rates or timing could require state adjustments. Lawmakers asked staff to obtain more granular agency breakdowns and to confirm estimates of the federal Medicaid assistance percentage…