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.

As the House Committee on Transportation reviews the annual Transportation Bill, it remains focused on the declining revenue coming to the Agency of Transportation (AOT) due to declining gas-tax revenues and vehicle purchase-and-use fees. The decline in gas-tax revenues can be expected to be ongoing as Vermont continues its commitment to reducing greenhouse gas emissions through electric vehicle (EV) adoption. Electric vehicles pay an additional registration fee (currently funding installation of EV charging stations), but the mileage-based user fee (proposed to charge EV owners a fee commensurate with the gas tax) is still in development. Federal and state EV purchase incentives, which boosted car sales, were halted last year. The situation is further compounded by a 60% increase in construction costs since 2020, directly impacting the cost of road maintenance.  At current transportation funding levels, the Agency projects that roughly 60 percent of our state roads will be in poor condition by 2030.

 The committee and the Governor are in agreement that the AOT’s annual contribution to the Education Fund through purchase-and-use fees (approx. $50 million in FY26) must begin to be eliminated in order to stabilize AOT resources. Beginning with FY 2027, AOT plans to begin reclaiming the one third of purchase-and use-fees that have been going to the Education Fund. Additionally, AOT plans to cut over $30 million from its FY27 budget, including a reduction of over 50 position in their labor force.

 Amidst these challenging finances, AOT plans to increase the miles of state highway maintenance projects in 2027 by maximizing available federal funds (to make up for a below-average paving year in 2026). Legislative action last session ensured that funds for town roads and structures increase at least at the rate of inflation. However, these funds are insufficient to meet the needs of municipalities and are already committed through 2035, meaning no new projects can be added to the list. And while AOT funds for local projects like sidewalks and bike lanes have brought great economic and social benefits to towns, funds for these projects remain severely limited. The committee continues to explore ways to shore up revenue and reduce costs while continuing to meet the state’s climate and resiliency goals.

The Agency of Transportation website provides information for the public on road conditions, scheduled paving projects, construction, plow locations, etc. at: https://vtrans.vermont.gov/contact-us