Transportation for Vermonters coalition urges new transit funding, restoration of EV and e‑bike rebates

Katie Gallagher, coordinator for the Transportation for Vermonters Coalition and a staff member at the Vermont Natural Resources Council, told the committee that the coalition’s top priority is sustainable transportation funding and that transit is an urgent need because several providers face fiscal shortfalls.

"The number 1 priority that we have for this session is overarching, which is sustainable funding for transportation in general," Gallagher said. She told members that while Green Mountain Transit has faced high‑profile shortfalls, smaller rural providers are also approaching potential fiscal cliffs and that the coalition wants lawmakers to examine alternative funding sources.

Key policy requests and background

- Sustain and restore EV and e‑bike incentive programs: Gallagher said the state lost federal support after not receiving an EPA grant last fall and urged reinstating consistent funding for both EV and e‑bike rebate programs. Presenters showed maps demonstrating program take‑up and warned that intermittent funding harms dealers and consumers.

- Prioritize transit operating funds: The coalition called transit an urgent funding priority to prevent service cuts that would isolate riders who depend on transit for healthcare, work and food access.

- Explore a revenue‑generating emissions‑reduction tool ("cap and invest"): The group recommended studying market‑based tools that both reduce greenhouse gas emissions and generate funds for transportation alternatives.

- Improve street safety: Local Motion and coalition members urged low‑cost policy and design measures to make walking, biking and rolling safer and more accessible.

Regional examples presented

John Heffner, housing and transportation program manager at Vital Communities, described Upper Valley outcomes: Advanced Transit’s fare‑free service (in place since 2003) and an expansion to evening and weekend service in 2022 brought ridership back to pre‑pandemic levels, he said. Southeast Vermont Transit’s microtransit pilot in Windsor (2023) improved access to health care and food assistance; Heffner said surveys showed improved access to health care after the microtransit launch.

Local Motion’s presenters emphasized safety and the aging population’s needs. Jonathan (Programs Director, Local Motion) noted recent law changes requiring motorists to give four feet when passing vulnerable road users and said a December report on bicycle operation could suggest additional low‑cost regulatory changes to improve safety and traffic flow.

Fares and rural service

Several legislators asked whether fares should be restored to generate revenue. Coalition witnesses and committee members said collecting fares in low‑density rural systems often costs more to administer than the fare revenue it would produce; one presenter said smaller rural routes often do not gain net revenue after the operating costs of fare collection are included. The coalition asked the state to consider stable public funding rather than reliance on fares for operating sustainability.

E‑bike rebates and economic effects

Presenters said the e‑bike rebate has helped lower‑income riders access affordable transportation and has benefited local bike retailers. "The ebike rebate program, super important program, helps low income people access, you know, an affordable means for transportation," a Local Motion presenter said. Members urged reinstating that funding.

Ending

Coalition members asked the committee to study durable funding sources and to consider policy tools that both reduce emissions and generate revenue for transit and active transportation. Committee members signaled interest but raised broader questions about how new priorities would be funded as traditional transportation revenues change.