Transportation Committee

The House Committee on Transportation considers matters relating to all air and surface transportation, the registration, regulation, and licensing of transportation operations and users, the construction and maintenance of thoroughfares, the impact of the transportation sector on air pollution and climate change, and other similar policies.

 Road and bridge maintenance:

With construction costs up over 60% in the last five years, funding for road and bridge maintenance across the state is increasingly challenging. 83% of Vermont roads are municipally-managed, 17% are state-managed, yet only 10% of the Agency of Transportation (AOT) maintenance budget supports municipal needs. The legislature added an annual inflation adjuster to the funding formula for Town Highways and Structures in H.488/Act 43, the FY 2026 Transportation Bill (T-Bill) This year’s FY2027 Transportation Bill (H.944/Act 168) further augments funding to municipalities by adding $3 million in one-time surplus (from excess PILOT revenues), and by proposing a new Local Option Municipal Transportation Special Fund, to be funded by a percentage of excess PILOT revenues. This funding was ultimately approved in  H.951/Act 144 (An act relating to making appropriations for the support of the government). Amidst these challenging finances, AOT budgeted to increase the miles of state highway maintenance projects in FY 2027 by maximizing available federal funds (to make up for a below-average paving year in 2026). The 2027 T-Bill also instructs the AOT to consider bonding certain road and bridge projects to further leverage federal dollars and increase critical infrastructure maintenance. H.944/Act 168 passed the House and Senate, and was signed into law by the Governor on 18 June 2026.

Agency of Transportation (AOT) revenue stabilization:

 As gas tax revenues continue to decline, AOT is working to stabilize its almost $1 billion budget. The Agency eliminated 62 positions this past year in a department of 1300+ full-time staff (over 500 in maintenance alone). Revenues coming into AOT were once healthy enough to share with the Education Fund (receiving approximately $50 million annually thru receipt of 1/3 of the purchase and use tax) and the State Police for Highway Patrol transfer ($20 million). The State Police for Highway Patrol JTOC revenue transfer ended in the 2026 T-Bill; the 33% revenue transfer of the purchase and use tax to the Education Fund changes to a 27% transfer in FY2027 (originally proposed in the T-Bill and ultimately enacted in the Miscellaneous Tax Bill). An increase in the gas tax continues to be discussed, but the Governor has made it clear he would veto such action.

Electric vehicles (EV) and EV chargers:

The FY 2026 T-Bill funded the planning and implementation of the mileage-based-user-fee (MBUF) program that will charge EV users for road use. EVs currently don’t pay into the gas tax, but do pay a higher registration fee that has been transferred to the Agency of Commerce and  Community Development to fund level I and II EV chargers statewide. The FY2027 T-Bill lays out the MBUF launch for 1 January 2027, with payment tied to the annual auto inspection. MBUF revenue will go to the Transportation Fund.

The National Electric Vehicle Infrastructure (NEVI) grant to install Level III electric chargers was frozen last year, but subsequently reinstated. One charging station in Bradford has been up and running since 2024. Another eight locations across the state should be functional by year-end 2026.

Transportation alternatives grant program:

The Transportation Alternatives Grant Program currently provides project grants of up to $600k in the areas of: environmental mitigation, bicycle/pedestrian, traffic calming, and historic preservation. Given a small surplus in this program (which includes federal funds), the 2027 T-Bill temporarily raises the ceiling on 2027 grants up to $1.2 million (reverting back to $600k in 2028).

Pollinator support:

A $150k Federal Highway Administration (FHWA) grant to establish 8-12 pollinator habitats along roadways, achieving both environmental and aesthetic goals, and decreasing labor costs in mowing, has been reinstated and is now moving forward.

Department of Motor Vehicles (DMV):

The FY 2026 DMV bill, S123/Act 66 (An act relating to miscellaneous changes to laws related to motor vehicles) allows for early renewal of Real and non-Real IDs, and Non-Driver IDs, to support marginalized Vermonters whose gender identity did not match their birth certificates or who may not have citizenship.1,574 Vermonters took advantage of this early-renewal program.

The FY 2027 DMV bill, S.326/Act 153 (An act relating to miscellaneous amendments to laws relating to motor vehicles requires the DMV to update the annual inspection manual to prioritize safety issues and provide relief from minor maintenance requirements. The bill tightens accountability on trucks illegally passing through Smuggler’s Notch, on snowmobiles using Vermont Association of Snow Travelers (VAST) trails without a permit, and clarifies the illegality of individuals intentionally altering a Vermont license-plate. Additionally, the bill requires the use of a personal flotation device while boating in winter and improves regulations on motorcycle exhaust systems that affect ambient noise in an effort to improve the safety and wellness of Vermonters. The bill passed the House and Senate, and was signed into law by the Governor on 16 June 2026.

The DMV finished its multi-year modernization project last fall replacing a 50-year old main frame computer system. The new system offers much-improved customer service for individuals and municipalities. Visit mydmv.vermont.gov.