Vermont labor officials explain $8 million reversion, outline UI modernization and backlog timelines

The Vermont Department of Labor told the House Appropriations Committee on Jan. 24 that an $8 million reversion in the FY25 budget adjustment consists of unspent federal ARPA dollars and carryforward funds for a UI modernization project that began in September 2024.

“Really, the big thing about the $8,000,000 is unspent funds that were part of the department’s base budget,” said Michael Harrington, Commissioner for the Department of Labor. He said part of the balance was ARPA funding used for UI administration and that carryforward money remained for a modernization line the department had not yet begun to spend.

The committee heard that the department awarded a contract to vendor FAST and that the modernization is an 18‑month project managed as part of the Agency of Digital Services (ADS) project portfolio. Harrington said the department expects a full cutover and go‑live “probably between May [and] July of 2026.”

Why it matters: committee members pressed the department about claimant wait times, adjudications delays and the use of one‑time federal funds. Lawmakers signaled interest in how reversions and sunsetting special funds could be redeployed elsewhere in the current budget adjustment.

Modernization, vendor and timeline

Harrington said the modernization began in September 2024 and that the vendor FAST — which he described as an established provider with multiple states using its UI product — won a public bid. The project…