State bike-and-pedestrian program budget rises; carbon-reduction funds boost awards

The Vermont Agency of Transportation (AOT) is proposing roughly $24.56 million in FY27 for its Bike & Pedestrian grant program, including federal matches, with awards typically announced in late summer.

Joel Parago, BTRANS municipal-assistance program manager, told the House Committee on Transportation that the program supports dozens of projects statewide and that the agency expects to manage about 59 ongoing projects across 43 communities this year, with 34 under construction. "We made awards last summer that were about $5.7 million," Parago said, noting that a recent two‑year commitment added roughly $4 million for carbon‑reduction projects.

Why it matters: the program funds sidewalks, bike lanes, crossings and smaller local safety projects in towns that often lack capacity for complex design and permitting. Parago said the budget figure includes both awards and expected expenditures, and that large construction projects such as South Burlington’s East–West pedestrian bridge can create year‑to‑year spikes in expenditures.

Program structure and timing: AOT described the grants as an annual solicitation (typically announced in April with applications due in June and awards made in August). The main program is funded about 80% by federal dollars and 20% local match; a separate small‑scale program is a 50/50 state/local split and is identified in the budget at $600,000 ($300,000 state and $300,000 local).

Parago said that scoping work and NEPA analysis are separate phases: scoping identifies resources and alternatives and NEPA comes later at conceptual design. Municipalities commonly hire private consultants for scoping and design because AOT staff are heavily committed to other work, though AOT’s municipal assistance staff provide guidance and can help towns through the scoping process.

Members asked whether the program’s additional carbon funds met demand. Parago said the first year of the carbon commitment yielded fewer eligible projects than anticipated—about $2 million awarded—so the agency carried more carbon funds into the following round, where an additional allocation (roughly $1.8 million) helped bring that awards round to about $5.7 million.

What’s next: AOT said it can provide members with project‑level breakdowns, historical annual award totals and comparisons that remove one‑off large projects to show baseline trends.

Sources: Presentation by Joel Parago to the House Committee on Transportation; FY27 budget materials.