VT LEG #381803 v.1
H.488 – An act relating to the fiscal year 2026
Transportation Program and miscellaneous changes to
laws related to transportation
As introduced by the House Committee on Transportation
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Bill Summary
he Fiscal Year 2026 Transportation Bill (H.488) adopts and amends Vermont’s annual
Transportation Program. It contains numerous statutory amendments and funding authorizations
related to transportation. The funding authorizations included in H.488 are subject to appropriations
in the fiscal year 2026 appropriations bill.
Fiscal Impact
This bill is estimated to have a de minimis impact on state revenues.
Details on Sections with Fiscal Implications
Section 6: Use of Rail Trails
Among other things, this section proposes to set a civil penalty of not more than $300 for the violation of
the provisions of use for rail trails owned by the state. This section is estimated to have a de minimis impact
on state revenues.
Section 10: Appropriations for State Aid for Town Highways
This section proposes to change statute related to the methodology for determining the amount of money
that is appropriated to General State aid to town highways (TH Aid), State aid for town highway structures
(TH structures), and the Class 2 Town Highway Roadway Program (TH class 2). Currently, TH structures
and TH class 2 are funded at a minimum amount set by statute. The current funding minimum for TH
structures is $7,200,000 and the minimum for TH class 2 is $8,600,000. TH Aid funding is determined by
using a formula that looks at the percentage change in the Agency of Transportation appropriations that are
funded by Transportation Funds and the percentage change is the consumer price index. Annual funding is
increased over the last year’s appropriation by the lessor of these two changes, unless the lessor amount is
0 or negative at which point the appropriation will stay the same as it was in the previous fiscal year.
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The Joint Fiscal Office (JFO) is a nonpartisan legislative office dedicated to producing unbiased fiscal analysis – this fiscal note is
meant to provide information for legislative consideration, not to provide policy recommendations.
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March 19, 2025 Logan Mooberry, Fiscal Analyst An act relating to the fiscal year 2026 Transportation Program 2
VT LEG #381803 v.1
This section proposes to use the formula for determining TH aid funding to determine funding for TH
structures and TH class 2. This proposed change will have no effect on the FY26 Transportation program
but will take effect in the FY27 program and beyond.
Section 11: Mileage-Based User Fee
This section proposes to update the language that was originally passed in 2023 Acts and Resolves No. 62
regarding legislative intent on a mileage-based user fee (MBUF), the authorization of funds to the Agency
of Transportation for the designing of an MBUF, and the design of a future MBUF. Due to federal funding
delays, the deadlines were unable to be met. As such this section changes a few dates to reflect a date in the
future. Additionally, there are some changes made to funding authorizations that at the time of passage were
unknown but are now known. Lastly, a change is made to the design criteria that reflect developments that
have been made since passage. There is no fiscal impact associated with this section.
Section 14: Drive Electric Vermont
This section proposes to authorize the Secretary of Transportation to spend up to $325,000 in monies
appropriated to the Electrify Your Fleet Program in FY 2024 for the continuation of the Agency of
Transportations partnership with Drive Electric Vermont. Any money spent must be spent on programs and
activities that support increased ownership and use of PEVs in the state. There is no fiscal impact associated
with this section.