With Vermont’s transportation fund in a freefall – including a projected $33 million funding shortfall for fiscal year 2027 – vital programs that serve Vermonters are on the chopping block. Right now, the House Transportation Committee is working to finalize the Transportation Bill, known as the T-bill. This legislation serves as the annual budget and policy guide for the Agency of Transportation (VTrans), and funds our roads and bridges, public transit, electric vehicle charging, and other initiatives that increase accessibility and reduce pollution.
As of March 10, the House Transportation Committee has just over a week left to make improvements to the current bill before voting it out. Committee members are making important decisions about whether or not to fund critical programs that Vermonters rely on, and they are considering proposals to stabilize transportation funding in the short term (even as we need long-term funding solutions).
We are asking lawmakers to support:
Reliable Public Transit
Increasing base-level funding for Green Mountain Transit by $1 million.
Rationale:
- Green Mountain Transit (GMT) is the state’s largest public transit provider, running fixed-route bus service across eight Chittenden County communities with a combined population of over 130,000, plus paratransit and inter-city commuter routes serving an even broader region. State funding as a share of GMT’s revenue has been in steady decline, from 26% in 2012 to just 12% today. GMT has already had to cut service in recent years to stay afloat.
- GMT is currently facing a $3 million shortfall that will start in mid-2027 and could force the elimination of up to 30% of its fixed-route service.
- Ensuring that GMT has adequate funding this year is urgent because cuts of this magnitude can trigger what transit experts call a “death spiral” – less service leads to fewer riders, which leads to less federal funding (since much of it is awarded based on ridership), which leads to even less service.
- If we let our transit systems deteriorate now, we are setting ourselves up for a painful transportation bottleneck just as Vermont works to grow its housing stock: more people, more homes, and no viable way to move around without a car.
Electric Mobility, Access, & Transparency
Restore funding for Drive Electric Vermont, a critical resource making electric transportation reliable and accessible.
Rationale:
- The Drive Electric Vermont program was formed in 2012 to get more electric cars on Vermont’s roads, ensure adequate charging stations around the state, and get the word out about model availability and cost-saving incentives for electric vehicle buyers.
- In this moment of federal retreat and rollback of fundamental environmental protections & regulations, it is more important than ever for Vermont to maintain critical partnerships that work to electrify our most polluting sector, save Vermonters money, and increase accessibility to EVs and EV charging.
- While Vermont lost funding for electric vehicles and bicycles in recent years, it is important to retain the infrastructure that Drive Electric provides to facilitate access to critical information and ongoing opportunities around electric vehicles.
Require publicly available electric vehicle chargers to accept credit card payment to make charging on-the-go more reliable and accessible, and to make real-time status information available to third parties.
Rationale:
- This proposal aims to reduce access barriers and enable better user information and network integration.
- As Vermont continues its commitment to expanding its publicly available chargers, it is important to keep in mind the rural characteristics of our state. By requiring that all public charging stations accept a credit card payment, it creates a more reliable and accessible system for travelers who may not have cell service to accommodate downloading an app prior to plugging in.
Safe Streets
Re-align the Transportation Alternatives Program (TAP) grants to prioritize biking, walking, and Safe Routes to Schools projects
Rationale:
- The Transportation Alternatives Program (TAP) is a federally funded program that provides grants for community-based, non-motorized transportation projects. It funds initiatives like pedestrian/bicycle facilities, safe routes to school, recreational trails, and community improvements to create safer, more accessible transportation options.
- As many federal and state opportunities to fund this work dry up, or get clawed back, we must amend the Transportation Alternatives Program (TAP) so that at least 80% of Vermont’s annual selections are allocated for Bike/Pedestrian & Safe Routes to School categories, with limited exceptions for environmental mitigation that directly enables complete streets.
- Currently, 50% of the funding is allocated for environmental mitigation projects that often have other, more flexible sources of funding.
- Vermont’s Safe Routes to School program has been defunded over the years, despite continued interest in helping more children walk or bike to school by improving safety, infrastructure and education.
- Funding for walking and biking improves safety and equitable access while helping Vermont meet its greenhouse gas reduction requirements and supporting connected and vibrant community centers.
- These investments reduce reliance on single-occupancy vehicles and provide cost-effective strategies to advance Vermont’s climate, economic development, and affordability goals.
Permit municipalities to adopt speed limits under 25 miles per hour in downtown centers, village centers, and thickly settled districts
Rationale:
- Currently, only Vermont towns with limited designated areas are allowed to set speed limits under 25 mph; this change would expand the areas with this authority.
- Allowing towns to set speed limits under 25 mph is crucial for enhancing safety, as reducing vehicle speeds significantly decreases the likelihood and severity of fatal crashes, particularly for pedestrians and cyclists. Lower speeds improve reaction times and promote walkable, livable communities.
Increased Options for Local Revenue
Allow municipalities to increase the amount raised through a Local Option Tax to support local transportation needs.
Rationale:
- Under current state law, cities and towns can assess a “Local Option Tax” (LOT) of up to 1% on three categories: rooms, meals & alcohol, and sales. The Vermont Department of Taxes administers these taxes, returning 70% of the revenue to the town while 30% goes to the state.
- Expanding the LOT percentage that towns can assess to up to 2% on the existing categories would give municipalities a pathway to raise additional revenue for critical services, such as transportation; this could be particularly helpful as VTrans delays projects and the state faces a tight fiscal year and decreasing federal revenue.
- VNRC is advocating to ensure that in this proposal, municipalities would keep the majority of the revenue raised from an additional percentage on an existing LOT – in line with the current 70/30 split.
As lawmakers make decisions that will affect the transportation options available to people across Vermont, they need to hear support for public transit, electrification programs, and other vital transportation needs today. Click here to find your legislators & see below for broader talking points you could include in your message.
We know that some of these proposals are short-term fixes, and that the legislature must prioritize identifying and enacting a sustainable, long-term transportation funding source next biennium. The challenges facing our transportation fund, and system, will only continue to grow without a long-term funding solution.
In order to help Vermonters cut costs, reduce climate pollution, and create vibrant, connected communities, investments in a robust, efficient statewide mobility system are critical – as is identifying sustainable, long-term revenue sources to pay for it.
Other talking points you could include in your message:
Public Transit
- In rural areas – where the majority of Vermonters live – transportation costs tend to be one of the largest expense categories, often second only to housing.
- Public transit is an essential service to ensure everyone can get to their daily needs, regardless of age, income, or ability.
- Public transit provides a 5-1 economic return for every dollar spent, further contributing to the overall well-being of the entire community.
- Investments in public transit support sustainable housing growth by enabling compact development patterns that reduce dependence on cars, lower transportation costs and cut climate pollution.
Safe Streets
- Ensuring towns can design streets that are safe and welcoming for all Vermonters – regardless of how they travel – improves affordability and accessibility, reduces climate pollution and air and water impacts by reducing dependence on vehicles, and helps strengthen downtowns and village centers.
Electric Mobility
- Transportation is consistently the largest source of the state’s climate pollution, making the transition to cleaner transportation essential for meeting the state’s climate commitments.
- Supporting the transition to an electrified transportation system is critical to ensure all Vermonters have the opportunity to access electric vehicles and electric vehicle charging – reducing emissions while lowering long-term fuel and maintenance costs for families, businesses, and public fleets.
Transportation Revenue
- The state of Vermont’s transportation funding landscape is very concerning as traditional funding sources – particularly the gas tax – decline; this makes it critical for the Legislature to approve short-term funding solutions that stabilize the transportation system while the state looks for long-term, sustainable revenue sources.
- Several studies and reports have highlighted the need to adopt new revenue sources and provided recommendations for consideration.
Big Picture
- Funding for public transit, electric mobility, and walking and biking will support a more accessible, affordable, and sustainable transportation system, which is critical in order for Vermont’s economy and communities to thrive.
- These investments support Vermont’s broader goals by helping workers access jobs, lowering household costs, improving public health outcomes, and reducing climate pollution.
- These investments also play a critical role in supporting Vermont’s housing and economic development strategies by enabling smart growth in downtowns and village centers.

