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Committee hears introduction to H.594, bill would set time-limited shelter tiers, reporting and $30 million in initial funding

January 15, 2026 | Human Services, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont


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Committee hears introduction to H.594, bill would set time-limited shelter tiers, reporting and $30 million in initial funding
A legislative committee on Jan. 15, 2026 heard an introduction and clause-by-clause walkthrough of H.594, the "Temporary Emergency Housing and Accountability Program and Return Home Program," which would create a time-limited, tiered emergency housing system administered by the Department for Children and Families and fund program start-up with an initial $30 million appropriation for fiscal 2027.

Representative Eric McGuire (Rutland City), the bill's lead sponsor, told the committee the measure is meant to pair ‘‘compassion with accountability’’ by establishing clearer expectations for providers, participants and the state. "Dignity is just isn't a warm night tonight. It's a path forward tomorrow," McGuire said, summarizing the bill's aim to move people from temporary shelter toward stable housing.

The bill would require DCF's Economic Services Division to implement a tiered continuum of care. Katie, a committee staff member who led the clause-by-clause review, said tiers include a program-ready shelter option (described in the bill as a preference for initial placement where capacity allows), a low-barrier shelter, transitional and recovery housing, supportive housing, and long-term permanent housing placements. Movement between tiers is intended to prioritize progress to permanent housing while allowing for hardship extensions when placements or services are unavailable.

H.594 sets time limits tied to tiers: placements in the tier-1 and tier-1a categories would generally be limited to 60 days; tier-2 and tier-2a placements would generally be limited to 180 days, with commissioner-adopted hardship extensions for medical necessity, lack of alternatives or other documented reasons. The bill also prescribes fair hearing rights: an applicant or participant whose benefits are denied, reduced or terminated may appeal to the Human Services Board and, if timely requested, continue to receive services pending the board's decision.

The bill includes detailed verification and anti-fraud provisions. Emergency placements may use presumptive eligibility for up to 14 days while documentation is pursued, and the department may verify residency in coordination with DMV and the Department of Taxes. Katie told the committee the department must submit an integrity report and a longer implementation report by Jan. 15, 2028, covering items such as numbers served, program expenditures, outcomes, and indicators that would trigger corrective action plans.

Legislative intent language caps hotel and motel use at 400 rooms for fiscal 2027 and directs a reduction in fiscal 2028, with elimination of general-assistance hotel/motel placements only upon the commissioner's certification that sufficient shelter and housing capacity exists statewide. Katie said hotel and motel rooms used solely for domestic-violence survivors under a separate contract would not be counted toward the cap.

The bill would also create a voluntary "return to home" program administered by DCF to provide travel and relocation assistance for eligible individuals who agree in writing to return to another state; participation must be voluntary, documented and appealable, and the bill includes a 72-hour cooling-off period before travel.

On funding, Katie outlined the fiscal 2027 appropriation of $30,000,000 to DCF: $10,000,000 to operate the temporary emergency housing and accountability program; $6,000,000 to expand shelter capacity; $4,000,000 for transitional and recovery housing contracts; $4,000,000 to repurpose hotels and motels into transitional or workforce housing; and $6,000,000 to expand supported permanent housing units. The bill includes an intent to appropriate $25,000,000 in fiscal 2028 with suggested allocations noted in the text.

Committee members asked about several drafting details, including clearer definitions for terms such as "program-ready" versus "low-barrier," how sanctions would be applied for nonparticipation, and whether case-management staffing ratios in the draft had been reversed. Katie said the language is meant to be amendable and noted that the bill requires case-management ratios not to exceed one case manager per 25 participants in program-ready shelter placements and one per 35 participants in low-barrier or transitional/supportive placements; members flagged this as surprising and requested clarification or correction in drafting.

Representative Donahue and Representative Stegg asked for precise definitions so lay readers and service providers understand access and obligations. Several members emphasized the committee will hear testimony from agency staff, housing and health partners and people with lived experience before making drafting or policy changes.

The committee did not take a vote on H.594 during the session. The chair closed the introductory walk-through and invited stakeholders to sign up with staff for future testimony and drafting discussions.

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