By VDC staff
The Vermont Department of Housing and Community Development has awarded just over $1 million in Fiscal Year 2026 Municipal Planning Grants to help cities and towns advance local planning, community revitalization, housing, and climate resilience projects across the state.
A total of $1,000,203 was distributed to 47 municipalities, including one multi-town consortium. Since the program began in 1998, it has provided more than $17 million to 243 Vermont cities and towns.
Several larger municipalities received funding for high-impact planning initiatives:
- Burlington was awarded $30,000 toward development of the city’s first Comprehensive Economic Development Strategy, which will become a new element of its Municipal Plan. The project will be led in partnership with the Community & Economic Development Office and focus on broad public engagement.
- Montpelier received $30,000 to re-envision the city’s riverfront with an emphasis on flood resilience, river access, and water quality, building on lessons learned from recent flooding events.
- South Burlington secured $30,000 to develop a Buildings and Thermal Sector Implementation Plan, while Newport City was awarded nearly $30,000 to explore thermal energy networks that could lower housing and energy costs using existing sewer infrastructure and Lake Memphremagog’s ambient temperatures.
Across Vermont, many smaller towns will use the grants to update town plans, strengthen hazard mitigation strategies, and address housing needs. Projects range from walking and biking infrastructure planning in Berkshire and Bolton, to adaptive reuse of community buildings in Belvidere and Killington, and comprehensive town plan updates in communities such as Chester, Randolph, Windsor, and Wheelock.
Climate resilience and flood mitigation remain a dominant theme this year. Towns including Clarendon, Ira, Pittsford, Proctor, Shrewsbury, Wallingford, and Jay received funding to advance hazard mitigation planning aimed at reducing risks from increasingly frequent and severe weather events.
Housing planning also features prominently. Underhill, West Fairlee, Troy, Norwich, Winhall, and Windsor will focus on reducing regulatory barriers, encouraging infill development, and aligning local bylaws with recent state housing legislation, including Act 181 and the HOME Act.
One consortium award went to Morristown and Johnson, which will jointly develop townwide Capital Improvement Plans to guide long-term municipal investments and budgeting through a public planning process.
A full list of funded projects and grant amounts is available through the Vermont Department of Housing and Community Development.