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
16 provisions identified: 8 benefits, 2 costs, 6 mixed.
Vermont adopts transportation and climate priorities
The law adopts Vermont’s fiscal year 2026 transportation program, with projects limited to available federal, state, and local funds. Transportation investments must align with state climate and energy goals. Planners must seek to reduce driving and greenhouse gas emissions when feasible. The Agency must weigh those opportunities when choosing between highway improvements and rebuilding. These rules guide state planning, not your personal travel.
More volunteer support and Medicaid ride information
In fiscal year 2026, the Agency may use up to $600,000 in one-time funds for transit agencies’ volunteer coordinators. Coordinators recruit and retain drivers for on-demand rides, with grants spread geographically when possible. The Agency must report grant results by December 15, 2026. Motor vehicle officials must pursue ways to inform drivers about volunteering, while health officials must publish Medicaid ride eligibility information. Invitations through licensing or vehicle registration must follow state and federal privacy rules; this does not change Medicaid eligibility.
Communications companies get railroad lease information
The Transportation Secretary must tell communications companies about available leases on state-owned railroad rights-of-way. The Secretary must consult the Public Service Commissioner. This information helps companies find potential sites, but does not require leases or change household service prices.
Funding for walking, biking, and carpooling
For fiscal year 2026, the law provides $2.43574 million for park-and-ride grants, construction, improvements, and paving. Projects add 50 spaces in Manchester and 10 in Sharon. Bicycle and pedestrian projects receive $21.879965 million, including local matching money, for construction, design, land rights, studies, and program support. This includes small municipal grants, Safe Routes to School projects, and grants along the Lamoille Valley Rail Trail. A separate transportation alternatives program receives $6.471054 million, including local funds, for environmental work, walking and biking facilities, and studies.
Funding keeps Vermont public transit running
The law provides $52.695234 million for public transit across Vermont in fiscal year 2026. That total includes $380,000 for Go! Vermont. It also includes $340,000 for the Mobility and Transportation Innovations Grant Program, with $315,000 coming from federal funds. The money supports transit providers; it does not establish a payment to individual riders.
Funding supports Vermont trains and depot repairs
The fiscal year 2026 rail program receives $61.887348 million, including local funds and $31.894436 million in federal funds. The money supports intercity passenger rail service and freight rail infrastructure. The law also adds White River Junction Depot repairs to the program and authorizes $260,000 in state funds for that work.
More support for electric fleet adoption
In fiscal year 2026, the Transportation Secretary may spend up to $325,000 to continue the Drive Electric Vermont partnership. Spending is limited to remaining fiscal year 2024 Electrify Your Fleet funds. The partnership supports public education, outreach, coordination, charging infrastructure development, and fleet assistance for towns and businesses.
Town road grants gain annual growth rules
Annual town highway aid and road-grant funding grow by the lesser of specified transportation-budget growth or June-to-June consumer inflation. Funding stays unchanged if either measured rate is zero or negative. The budget comparison excludes general town highway aid, structures grants, and Class 2 roadway funding. Annual qualifying project approvals must total at least $7.2 million in estimated state funding for structures and $8.6 million for Class 2 roadways. Beginning fiscal year 2027, those minimums rise with their appropriations. Towns without state or Class 1 highways can use roadway grants for Class 2 and Class 3 work. Structures funds can cover part of federal matching requirements, and spending above appropriations triggers requests for supplemental funding. The law also keeps $1.15 million for non-federal disaster road grants, now paid from the PILOT Special Fund.
Plug-in hybrid owners owe infrastructure fees
Beginning January 1, 2025, plug-in hybrid vehicles classified as pleasure cars carry an annual or biennial electric vehicle infrastructure fee. These vehicles are not subject to the battery-electric mileage fee. The supplied text does not state the infrastructure fee amount.
Barre–Berlin–Montpelier rail subsidy is removed
The law removes the Barre–Berlin–Montpelier WACR rail subsidy from the fiscal year 2026 rail program. The supplied text does not state the subsidy amount or any resulting service change.
Electric-car mileage fee has start conditions
The law targets January 1, 2027, for a mileage fee on Vermont-registered battery-electric vehicles. Collection requires enough implementation funding and effective legislation setting the per-mile rate and authorizing the program. The planned fee equals that rate times miles traveled. Without an odometer reading, the calculation uses the 98th percentile of estimated annual miles for a Vermont pleasure car. Owners and lessees can choose annual, quarterly, or monthly payments, reconciled at registration renewal. When a terminating event closes a reporting period, payment is due within 60 days. The law authorizes up to $350,000 in fiscal year 2025 state matching funds for a federal design grant. Design work depends on accepting that grant, sufficient funding, and state purchasing rules; no household fee amount is stated.
Rail trails gain rules and penalties
The Secretary can preserve state rail corridors for future trains while allowing interim trail use. After consulting municipalities, the Secretary can adopt trail-use rules and must post signs explaining them. Breaking those adopted rules can bring a penalty of up to $300. The law also bans littering, trail damage, unauthorized business activity, unapproved events, wildlife harassment, and specified weapons and fire conduct. It limits motorized vehicles, solicitation, and overnight camping, with sponsor-approved or legally specified exceptions; separate statutory civil penalties apply.
Transportation bidders use agency appeal review
The Agency of Transportation now reviews appeals about covered transportation bids and competitive contract negotiations. The law removes that review from the Transportation Board. Bidders retain an appeal process, but the reviewing body changes.
Utility marking deadlines extend before digging
Effective on passage, utilities get 72 hours after notice to mark underground facilities, instead of 48 hours. Saturdays, Sundays, and legal holidays do not count; the same deadline covers replacing lost or destroyed markings. For large sites, utilities must mark the first work area within 72 hours and the rest within a reasonable time. Utilities and excavators can agree to a later time, but marking must happen before digging.
Green Mountain Transit faces service-area rules
Green Mountain Transit’s operating area is the Census-defined urbanized area of Chittenden County. The Authority can operate outside that area with Agency of Transportation approval. Other providers need the same approval to offer connecting transit or on-demand service within the area. The law does not require new routes.
St. Albans can take Route 36
The Transportation Secretary can agree with St. Albans to transfer about 2.834 miles of Vermont Route 36 to the Town. The segment includes the westbound section and approaches at the St. Albans Bay Town Park entrance. The transfer requires agreement between the Secretary and Town; the law does not specify resulting maintenance costs.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
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
6/3/2025HouseSigned by Governor on June 2, 2025
6/2/2025HouseDelivered to Governor on May 27, 2025
5/27/2025HouseHouse message: House adopted Conference Committee report
5/22/2025HouseCommittee of Conference report adopted (House bill)
5/21/2025HouseAction Calendar: Action postponed until 5/21/2025
5/21/2025HouseAction Calendar: Action postponed until 5/21/2025
5/20/2025HouseAction Calendar: Action postponed until May 21, 2025
5/19/2025HouseRep. Corcoran of Bennington moved to postpone action until 5/21/2025, which was agreed to
5/16/2025HouseAction Calendar: Report of Committee of Conference
5/16/2025HouseNotice Calendar: Report of Committee of Conference
5/15/2025HouseSenate Message: Report of Committee of Conference adopted
5/14/2025SenateRules suspended & messaged to House forthwith, on motion of Senator Baruth
5/14/2025SenateCommittee of Conference report adopted
5/14/2025SenateCommittee of Conference report submitted by Senator Westman for Committee, text
5/14/2025SenateNew Business/Committee of Conference Report
5/14/2025SenateCommittee of Conference report
5/13/2025SenateEntered on Notice Calendar
5/13/2025SenateSenate Message: Committee of Conference members appointed
5/2/2025SenateCommittee of Conference appointed: Senators Westman, Perchlik, and White
5/2/2025SenateHouse message: House refused to concur in Senate proposal of amendment & requested Conference Committee; House Conference Committee members appointed
5/2/2025HouseRules suspended and bill messaged forthwith to the Senate as moved by Rep. Toof of St. Albans Town
5/2/2025HouseSpeaker 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
5/2/2025HouseSenate proposal of amendment not concurred in and Committee of Conference requested upon motion of Rep. Walker of Swanton
5/2/2025HouseRules 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)Opens in a new window
6/4/2025
As Passed by Both Chambers
5/27/2025
As Passed by Both Chambers (Unofficial)
5/27/2025
Senate Proposal of Amendment
5/2/2025
Senate Proposal of Amendment (Unofficial)
5/2/2025
As Passed by the House
3/31/2025
As Passed by the House (Unofficial)
3/31/2025
As Introduced
3/19/2025
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