Senate amends and passes bill expanding VIDA eligibility, adds consult on non‑declared disasters

The Vermont Senate amended and passed H.398 on Tuesday after floor debate and an amendment clarifying the bill’s scope and consultation requirements for disaster recovery lending.

A senator from Chittenden explained the amendment, saying the first change aligns statutory language so when VIDA acts with certain powers “they're acting as the authority and not the state.” The Senate also inserted language requested by the Department of Forests, Parks and Recreation to explicitly include forest operations among entities eligible for the proposed disaster recovery loan program and to add that FPR be consulted when VIDA evaluates loans.

The committee amendment also added the phrase “a non declared disaster event” to make clear the fund could be available for serious local incidents that do not rise to a formal state or federal disaster declaration. The sponsor described examples discussed on the floor: a locally important bridge washed out in a major storm that was not a declared disaster, and an agricultural loss such as an animal disease outbreak that might not meet declaration thresholds but could warrant access to recovery lending.

Senate Finance members jointly signed on to the amendment; the Senate voted to accept the amendment and then passed H.398 in concurrence.

The amendment does not grant VIDA authority to declare disasters; it requires VIDA to consult with the secretaries of Commerce and Community Development, Agriculture, Food and Markets, and the Commissioner of Forests, Parks and Recreation when considering whether funds should be available following a non‑declared disaster event. The bill also acknowledges VIDA’s separate role in managing the state infrastructure bank and other transportation-related tools, which the sponsor said remain available for transportation infrastructure needs such as public bus terminals or electric vehicle charging stations.