The Otter Creek CUD sustainability committee reported it will continue under the existing interlocal agreement rather than pursue a full merger, citing cost concerns and the small operational savings a merger would deliver.

Committee members said the district’s recurring expenses — website hosting, email and insurance — are the primary cost drivers. The group discussed using some 2026 preconstruction grant funds to hire a consultant to pursue additional grant sources and noted the district will scale its meeting cadence from weekly to biweekly or less as operations settle.

Members also discussed statewide funding risks. Larry told the board the federal Broadband Equity, Deployment and Adoption (BEDA/BED) allocation for Vermont was $120 million but that the National Telecommunications and Information Administration (NTIA) is reportedly considering reclaiming $100 million; that scenario would reduce available federal funding for CUD buildouts dramatically and could change plans for remaining buildout or funding targets. The board scheduled a legislative day for Jan. 29, 2026 to coordinate state-level advocacy.

Why it matters: The committee’s decision preserves the CUD’s existing interlocal governance and seeks to limit near‑term costs while continuing to pursue grant funding. The federal funding uncertainty could have material impacts on buildout timelines and financing for rural connections across Vermont if the NTIA reclaims funds.

What was said: The chair summarized the committee’s review and said a merger would be “much more expensive to develop” than remaining under the interlocal agreement. The chair and members emphasized the need to reduce operating costs and to use available preconstruction funds strategically.

Next steps: The sustainability committee will continue to refine cost-saving measures, consider a consultant engagement funded out of preconstruction dollars, and prepare for legislative day on Jan. 29, 2026 to track any changes in federal funding policy.