After months of deliberation, the U.S. Treasury Department will allow federal Covid-19 relief money appropriated for county governments to go directly to Vermont’s cities and towns, the state’s congressional delegation announced Friday.
That means Vermont municipal governments will receive an additional $120 million in federal money.
The American Rescue Plan Act, passed in March, designated separate funding for state, local and town governments. Vermont municipalities were appropriated $76 million. The Treasury designated counties as a form of local government and withheld county-specific money from Vermont because Vermont’s county governments don’t have mechanisms to receive it.
Vermont counties oversee courthouses and host sheriff’s departments, and their budgets are prepared by elected assistant judges. Those budgets are generally quite small. Chittenden County is the only county in Vermont with an annual budget over $1 million.
So, Vermont’s congressional delegation urged federal officials to recognize the unique nature of Vermont counties and slide the county money to cities and towns, which handle government functions that counties often handle in other states.
In a joint statement Friday, Sens. Patrick Leahy and Bernie Sanders and Congressman Peter Welch said, “With this updated rule from the Treasury Department, $120 million intended for the state will now finally flow to towns throughout Vermont, and these resources will help meet needs for Vermonters across the state.”
Leahy, who chairs the Senate Appropriations Committee, had asked Treasury Secretary Janet Yellen to change the designation during a subcommittee hearing in June.
“I want to thank our congressional delegation for their advocacy, and the Biden administration for their willingness to listen and adapt to Vermont’s unique county structure,” Gov. Phil Scott said in a statement Friday. “This revision in guidance will allow our municipalities to take full advantage of the ARPA funding they are entitled to, so they can begin making critical investments to address their needs, helping us recover from the pandemic stronger.”
It remains unclear how county-level funds will be apportioned to each town.
“Congress intended these fiscal recovery funds to help local governments fill gaps caused by the pandemic, respond to the ongoing crisis, and chart a path to long-term recovery,” Ted Brady, executive director of Vermont League of Cities and Towns, wrote in an email to VTDigger. “Vermont’s cities, towns and villages appreciate our congressional delegation’s commitment and Gov. Scott’s efforts to make sure the funding reached the local level.”
