Vermont community action agencies ask Legislature for roughly $15.8 million to expand housing navigation, vouchers and financial programs

Jenna O'Farrell, executive director of Northeast Kingdom Community Action, and other leaders from Vermont's community action agencies told the House Human Services Committee on Jan. 24 that homelessness in the state has risen since the COVID-19 pandemic and that agencies need additional state funding to expand housing navigation, direct financial assistance to landlords and clients, and related case-management services.

The agencies said they are asking for a statewide housing request of about $15.825 million for fiscal 2026, including $2.4 million described for a “home” family voucher component and additional amounts for housing opportunity (HOP) programming, case management and direct financial assistance. “We burned through that $100,000 at NECA in six months,” Casey Winterson, director of economic and community-based services at Northeast Kingdom Community Action, said of local emergency assistance funds, adding that agencies repeatedly exhaust limited pools of flexible dollars.

Why it matters: Speakers said housing navigation plus short-term financial assistance is the lever that prevents people from entering or remaining in homelessness and that case management is necessary to use those dollars effectively. The presenters described HOP-funded services that link clients to landlords, provide rental arrears and move-in assistance, and require documentation of sustainability before payments are made.

Most important facts: Casey Winterson cited the federal point-in-time reporting compiled for Vermont showing 3,458 individuals in the statewide count for 2024; speakers said that figure included 737 children, 646 people age 55 or older and 107 veterans. Winterson said community action agencies use the Homeless Management Information System (HMIS) and coordinated entry so placements and assistance are visible across systems. O'Farrell said community action agencies also combine short-term crisis help with long-term coaching and employment and economic services.

Program details and measurements: Liz Scharf (Director of Community Economic Development and Food Security at Capstone Community Action) described the agencies' microbusiness, accredited financial-counseling and volunteer tax-assistance (VITA) work. Scharf said the VITA program filed more than 5,000 tax returns statewide last year and the network worked with roughly 600 microbusinesses. Winterson said HOP dollars can pay up to three months of rental arrears, first/last/security deposits, and — in limited cases — relocation costs when a family can move to a stable placement outside the area.

Speakers emphasized the combination of services: O'Farrell said the “secret sauce of community action is that we are very human centered,” describing intake processes that identify eligible households and connect them to multiple services rather than a single, transactional aid. Winterson said vouchers plus case management provide a footing for families to stabilize over time: “It is case management plus direct dollars through financial assistance, plus a voucher that allows for folks to get used to paying for rent.”

Funding request and breakdown: Winterson described a housing request totaling about $15.825 million for FY2026, with $2.4 million earmarked for home-family vouchers and further sums described for HOP programming and staffing. The presenters also asked for increases to financial-capability programs statewide — microbusiness support, VITA tax assistance and accredited financial counseling — totaling about $1.65 million, with proposed increases of roughly $87,000 for microbusiness, $148,000 for VITA and $358,000 for financial coaching.

Committee questions and process notes: Committee members asked how agencies avoid duplicate payments and how databases are used; presenters said HMIS/coordinated entry plus agency intake and case-management relationships largely prevent “double dipping” for major benefits and housing placements, though universal cross-organizational visibility is limited for some small services. Winterson and O'Farrell said more case managers and larger flexible-assistance pools are needed because current funds are exhausted quickly.

What happens next: Presenters said they will bring budget details to the committee during the formal budget session; the agencies asked that legislators consider the FY2026 funding increases to expand home vouchers, HOP support and the financial-capability programs that staff said reduce long-term housing instability.

Ending: The committee did not take votes on funding at the hearing. Presenters said they will supply formal budget asks and additional data during the state budget process.