Vermont Senate advances $883 million transportation package, senators warn of looming funding cliff

The Vermont Senate on Wednesday moved H.488 — a transportation appropriation and policy bill totaling roughly $883 million — forward with committee amendments and an added amendment, and ordered the bill for third reading.

Senate Transportation Committee Chair Senator Westman (Senator from Lamoille) told colleagues the current package is balanced for this year but that Vermont faces a structural funding shortfall going forward. “We're literally approaching a point of no return for the transportation fund,” Westman said during a lengthy presentation that reviewed revenue forecasts, construction cost inflation and program changes.

Westman said this year’s plan uses a mix of transportation funds, federal aid and one‑time general fund and FEMA monies to balance the budget, but warned those supports will not repeat. He cited a projected $30 million state‑fund shortfall in the next fiscal year that, because of federal matching rules, would translate to roughly $149.5 million in federal funds the state could not match. “If we don't do something, we do lose ground,” Westman said.

The bill includes a broad set of policy and program provisions: adoption of the 2026 transportation…