VermontH.4882025-2026 SessionHouseWALLET

An act relating to the fiscal year 2026 Transportation Program and miscellaneous changes to laws related to transportation

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 11 benefits, 3 costs, 1 mixed.

More funding for biking and park-and-ride

For FY2026, Vermont invests about $30 million in bike, walk, and park‑and‑ride projects. The state builds two new park‑and‑rides and improves two others, adding 60 spaces (50 in Manchester, 10 in Sharon). It also funds dozens of bicycle and pedestrian construction, design, and scoping projects, plus small local grants and Safe Routes to School.

More money for public transit

For FY2026, the state provides $52.7 million for public transit across Vermont. This includes $380,000 for Go! Vermont and $340,000 for the Mobility and Transportation Innovations grants ($315,000 federal). The funds support bus operations, commuter services, and local mobility projects.

Rail service and station repairs funded

For FY2026, the state provides $61.9 million for rail, including $31.9 million federal. The money supports intercity passenger service and freight‑supporting rail work. It also adds $260,000 to repair the White River Junction depot.

Plan for EV mileage fees

The law sets a plan to charge battery‑electric cars by miles driven. It states that plug‑in hybrids are subject to a higher annual or biennial EV infrastructure fee starting January 1, 2025, and they do not pay the mileage fee. The BEV mileage fee is tied to what a typical gas car pays in state fuel tax and cannot start until the Legislature enacts it; the law also calls for studying a per‑kilowatt‑hour fee at some public chargers. The Transportation Secretary must brief lawmakers by September 30, 2025 and December 15, 2025, and file a written impact report if FY2026 state or federal transportation funding drops by more than 4%.

Manage rail corridors and expand broadband

The state can place unused state‑owned rail lines in railbank status while keeping them for future public use. Starting July 1, 2025, the Transportation Secretary, with the Public Service Commissioner, shares which railroad rights‑of‑way are available to lease for phone and broadband. Each year by December 15, the Secretary reports lease revenues from these corridors to lawmakers.

New Transportation Board and appeal rights

Starting July 1, 2025, Vermont creates a seven‑member Transportation Board at the Agency of Transportation. The Governor appoints members (with Senate approval) and the chair; members serve three‑year terms. The Board can hear written appeals on some contract execution disputes and on certain junkyard and salvage yard decisions.

Planning must cut driving and emissions

Starting July 1, 2025, transportation planning must help cut driving and greenhouse gas emissions. The Agency must align projects with the state’s energy plan and complete streets. When choosing highway fixes, it must weigh chances to reduce miles driven or emissions.

Support for Drive Electric Vermont

In FY2026, the Transportation Secretary may spend up to $325,000 left from the 2024 Electrify Your Fleet program. The money supports work with Drive Electric Vermont on outreach, infrastructure, and technical help for towns and businesses.

More volunteer rides for Medicaid trips

Medicaid riders get better access to non‑emergency rides. Before signing the FY2026 transport contract, the state must analyze service changes and coordinate with the transportation agency. By July 15, 2025, DVHA starts stakeholder meetings to expand volunteer drivers; an update is due January 30, 2026. The DMV and DVHA run outreach and post clear eligibility info online, following privacy rules. The Agency of Transportation can grant up to $600,000 in FY2026 to hire volunteer coordinators and must report results by December 15, 2026.

Study VIN process for kit cars

Starting July 1, 2025, the DMV studies how to issue State VINs and register ultra‑low‑volume, kit, and homebuilt vehicles. The review looks at safety and emissions and proposes a simpler VIN process. A report is due to lawmakers by January 15, 2026.

FY2026 transportation program adopted

The state adopts the Agency of Transportation’s FY2026 program. The Agency can move ahead with listed projects as federal, state, and local funds allow. This adoption guides priorities and spending for FY2026.

More state aid for town roads

Starting July 1, 2025, the state sets yearly minimum funding targets for two town highway grant programs: $7.2 million for structures and $8.6 million for Class 2 roads. Beginning in FY2027, each minimum grows by the same percent as that program’s appropriation increases. For FY2026, $1.15 million for town highway non‑federal disasters comes from the PILOT Special Fund instead of the Transportation Fund.

Rules and fines for state rail trails

Starting July 1, 2025, the state posts rules for interim rail‑trail use on state‑owned railroad land. You cannot litter, damage surfaces, build fires outside designated spots, camp overnight, solicit, or use most motor vehicles. Allowed exceptions include maintenance vehicles, some snowmobiles, approved mobility devices for people with disabilities, and permitted e‑bikes. Breaking posted rules can cost up to $300 per violation.

Longer wait for utility mark-outs

Beginning June 2, 2025, utilities have 72 hours, not 48, to mark or remark underground lines after notice. Weekends and legal holidays do not count. This can slow start dates for homeowners and contractors planning to dig.

St. Albans takes over Route 36

The state can transfer a 2.834‑mile section of Route 36 to the Town of St. Albans. This includes a 0.106‑mile westbound section near St. Albans Bay Town Park. Local control may change how the road is maintained and who pays for it.

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Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

House message: Governor approved bill on June 2, 2025
6/3/2025Senate
Signed by Governor on June 2, 2025
6/2/2025House
Delivered to the Governor on May 27, 2025
5/27/2025House
House message: House adopted Conference Committee report
5/22/2025Senate
Committee of Conference report adopted (House bill)
5/21/2025House
Action Calendar: Action postponed until 5/21/2025
5/21/2025House
Action Calendar: Action postponed until 5/21/2025
5/20/2025House
Action Calendar: Action postponed until May 21, 2025
5/19/2025House
Rep. Corcoran of Bennington moved to postpone action until 5/21/2025, which was agreed to
5/16/2025House
Action Calendar: Report of Committee of Conference
5/16/2025House
Notice Calendar: Report of Committee of Conference
5/15/2025House
Senate Message: Report of Committee of Conference adopted
5/14/2025House
Rules suspended & messaged to House forthwith, on motion of Senator Baruth
5/14/2025Senate
Committee of Conference report adopted
5/14/2025Senate
Committee of Conference report submitted by Senator Westman for Committee, text
5/14/2025Senate
New Business/Committee of Conference Report
5/14/2025Senate
Committee of Conference report
5/13/2025Senate
Entered on Notice Calendar
5/13/2025Senate
Senate Message: Committee of Conference members appointed
5/2/2025House
Committee of Conference appointed: Senators Westman, Perchlik, and White
5/2/2025Senate
House message: House refused to concur in Senate proposal of amendment & requested Conference Committee; House Conference Committee members appointed
5/2/2025Senate
Rules suspended and bill messaged forthwith to the Senate as moved by Rep. Toof of St. Albans Town
5/2/2025House
Speaker appointed Reps. Walker of Swanton, Corcoran of Bennington, and Burke of Brattleboro as members of the Committee of Conference on the part of the House
5/2/2025House
Senate proposal of amendment not concurred in and Committee of Conference requested upon motion of Rep. Walker of Swanton
5/2/2025House
Rules suspended and taken up for immediate consideration as moved by Rep. Toof of St. Albans Town
5/2/2025House

Bill Text

As Enacted (ACT 43)
6/4/2025
PDF
As Passed by Both Chambers
5/27/2025
PDF
As Passed by Both Chambers (Unofficial)
5/27/2025
PDF
Senate Proposal of Amendment
5/2/2025
PDF
Senate Proposal of Amendment (Unofficial)
5/2/2025
PDF
As Passed by the House
3/31/2025
PDF
As Passed by the House (Unofficial)
3/31/2025
PDF
As Introduced
3/19/2025
PDF

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