Administration proposes one‑time transfer to AOT for road and bridge storm repairs, cites FEMA limits

Appropriations · April 7, 2026

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Summary

The chief recovery officer told the committee the House had parked storm‑damage repair funds in a mitigation fund but recommends one‑time general funds be routed directly to the Agency of Transportation because the mitigation fund is not intended for repair of storm damage; the request includes roughly $1,347,107 tied to reviewed AOT estimates.

Lisa Farnham, the state’s chief recovery officer, briefed the committee on a proposed technical change that would direct one‑time general funds to the Agency of Transportation for municipal road and bridge repairs instead of the Community Resilience and Disaster Mitigation Fund. Farnham said the House initially placed the money in the mitigation fund "as in the heat of the moment, a place to park the money," but after consulting AOT and Vermont Emergency Management the administration recommends direct AOT funding because the mitigation fund was created for hazard mitigation rather than repairs.

Farnham provided a proposed figure of $1,347,107 and described it as about "50% of the estimated repair costs, as of last month." She explained FEMA had denied federal assistance in these cases and the state cannot fully replace the federal share; towns would still be expected to provide local matching shares. Farnham also noted a particular bridge in Wheelock was not included in FEMA submissions because of a complex backstory and alternate town choices; that bridge remains closed after repeated damage and affects seven households, though those households currently retain access via a reclassified road.

The administration said AOT reviewed estimates and that the projects in question are being scoped to AOT standards. The recommended technical letter accompanying the administration’s proposal includes suggested amendments to the House language to ensure programmatic criteria and reimbursement language make grants specific to infrastructure that suffered damage.

Committee members asked clarifying questions about eligibility and local impacts; staff responded that the approach aims to speed repairs and avoid complicating oversight by expanding the mitigation fund’s eligible uses.