By Guy Page

The Legislature has approved H. 494,  the $112 million two-year capital construction and bonding bill, following an agreement between House and Senate negotiators. Senate agreement with the House version of the bill.

The act outlines capital investments for fiscal years 2026 and 2027, authorizing a total of $111,965,288.

According to the legislative intent, not more than $61,969,761 of the total amount is intended to be appropriated in the first year of the biennium (FY 2026), with the remainder appropriated in the second year (FY 2027). 

Key appropriations for FY 2026 and FY 2027 include:

State Buildings: A total of $28,951,680 is appropriated to the Department of Buildings and General Services for state buildings. Projects cover statewide major maintenance, stormwater compliance, Art in State Buildings, and specific site work in Rutland, Middlesex, Waterbury, and Burlington. FY 2027 funding supports additional major maintenance, planning, security, Montpelier State House and 120 State Street work, Middlesex State Archives, and Pittsford Academy firing range upgrades16….

Human Services: Capital appropriations totaling $13,025,000 are made for projects primarily at correctional facilities, including statewide HVAC, accessibility, and safety/security upgrades, as well as specific projects at four state prisons.

Commerce and Community Development: $1,667,000 is allocated for major maintenance at statewide historic sites, Vermont Underwater Historic Preserves, roadside historic site markers, and $425,000 for work at the deteriorating Bennington Battle Monument. 

Grant Programs: $4,200,000 for Building Communities Grants, distributed equally over FY 2026 and FY 2027. These grants support historic preservation, historic barns preservation, cultural facilities, recreational facilities, human services and educational facilities, regional economic development, and agricultural fairs and field days capital projects.

Vermont Veterans’ Home: $1,050,000 is appropriated in FY 2026 for the replacement of air handlers and expansion of laundry facilities. 

University of Vermont: $3,000,000 over the biennium for construction, renovations, and major maintenance.

Vermont State Colleges: $8,000,000 is allocated, including funds for statewide construction, renovations, and major maintenance, and a central heating plant replacement in Johnson. 

Natural Resources: Totaling $11,124,360, funds are directed towards dam safety, hydrology, park infrastructure, public lands access, and Fish and Wildlife major maintenance and infrastructure projects. FY 2027 includes a State match for the Drinking Water State Revolving Fund. 

Clean Water Initiatives: A significant $20,000,000 is appropriated over the two fiscal years for various clean water efforts, including water quality grants, municipal pollution control grants, water quality improvements to forest roads, agricultural water quality projects, and land conservation/water quality projects. FY 2027 funds are for clean water implementation projects. 

Military: $3,926,338.00 is appropriated for major maintenance, renovations, and ADA compliance at armories, and planning and design for the Northwest Regional Readiness Center.

Agriculture, Food and Markets: $6,500,000 is allocated, including renovations to the Vermont Building at the Eastern States Exposition and heat system upgrades serving the VTSU Randolph Campus and VT Agricultural and Environmental Laboratory. 

Public Safety: $3,795,000 is appropriated for the Rutland Field Station and planning/design for the Shaftsbury Field Station.

Judiciary: $5,075,910 in FY 2026 funding is provided for backup power systems at courthouses in Woodstock and Lamoille County, security upgrades in Essex County, and renovations at the Windsor County Courthouse.

Vermont Rural Fire Protection: $250,000 is appropriated over two years for the dry hydrant program.

Vermont Historical Society: $700,000 is provided in FY 2026 for mitigating water infiltration at the Spaulding Building in Barre.

Other policy sections address the transfer of the Randall Meadow property in Waterbury, updates on Capitol Complex flood recovery planning, the reuse of federal funds for future capital projects at the Vermont Veterans’ Home, and a specific FY 2025 appropriation for the Sergeant at Arms for State House cafeteria furnishings and a baggage screening X-ray machine.

The funding for these capital projects will come from several sources, including the reallocation of funds from prior capital appropriations and the issuance of general obligation bonds. A total of $6,774,938 ($5,074,938 bonded and $1,700,000 cash) is reallocated from various prior appropriations across multiple agencies, including Buildings and General Services, Commerce and Community Development, Transportation, Agriculture, Education, Natural Resources, and the Vermont Veterans’ Home. The State Treasurer is authorized to issue $100,000,000 in general obligation bonds. 

The act authorizes over $11 million in infrastructure spending, including statewide maintenance, planning, security, State House repointing, Middlesex Print and Postal UPS, Judiciary renovations at Windsor County Courthouse, Vermont Veterans’ Home American unit design/construction, ACCD infrastructure for housing development, Fish and Wildlife Walleye infrastructure, and Vermont Rural Fire Protection dry hydrants.