Appropriations hearing: committee flags $5.5M–$8M emergency-housing underspend and urges clearer use of HOP/OEO funds
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Summary
House Human Services Chair Teresa Wood told the Appropriations Committee the department reported at least a $5.5 million underspend in emergency housing assistance (Wood estimated closer to $8 million) and the committee recommended keeping funds in general assistance and restoring community partner HOP dollars redirected without notice.
Teresa Wood, chair of the House Human Services Committee, told the House Appropriations Committee on Jan. 15 that the administration reported a projected underspend of at least $5.5 million in emergency housing assistance and that, based on committee calculations, the underspend could be nearer $8 million.
Wood said the administration had appropriated funds in general assistance but appeared to be redirecting some amounts to other divisions (for example to OEO shelter services) without explicit legislative authority. She described situations in which people were using emergency rooms or ambulances to seek shelter, and she said some cold-weather shelter rules (initially set at minus-20, revised to minus-10) and billing constraints were limiting when shelters could bill the department.
Committee recommendations and findings: The Human Services committee recommended retaining the general assistance funds for their intended purpose and not allowing unilateral reallocation by divisions. Wood said the committee would prefer funds be spent to expand winter shelter capacity and to provide grants to community providers (including Vermont Interfaith Action) rather than leaving money unused while people remain unhoused.
Housing Opportunity Program (HOP) and community partners: Wood reported that 14 community partners experienced a combined FY26 funding reduction of about $1.3 million after the department redirected HOP funds; the committee recommended restoring those providers to FY25 funding levels and drafting clear language to specify recipients and amounts. The committee also recommended reducing an administration shelter request from $2,000,000 to $677,859 to offset cuts experienced by community providers.
Next steps: Members asked for additional clarification from the Departments for Children and Families (DCF) and AHS/DAIL and asked JFO to provide detailed carry-forward and spending reports. The committee scheduled follow-up testimony and will continue this review in the FY27 budget process.
