House rejects bill amendment to create unfunded flood-recovery program after hours of debate

Lawmakers on the Vermont House floor rejected an amendment aimed at creating a flood recovery assistance program that would establish eligibility and distribution mechanisms for future federal or other off-session funds.

The amendment, offered by the member from Montpelier, proposed creating a program to let the Agency of Commerce and Community Development distribute funds to businesses and nonprofits harmed by the summer floods, covering structural damage, lost revenues, wages, inventory and operating expenses. Sponsors emphasized equitable prioritization for BIPOC and immigrant-owned businesses and said the text simply creates a framework and would not appropriate state money immediately.

"This amendment creates the flood recovery assistant program, which expands the eligible criteria from only covering physical or structural damages to the flood, to lost revenue for businesses, lost wages, of employees in the businesses, lost inventory, damaged equipment, and other operating expenses," the sponsor said during floor remarks.

Opponents, including the chair of Appropriations, said the budget was not the proper vehicle to create the program at the last minute and expressed concern about ACCD's staffing capacity to administer any new grant-making responsibilities. Appropriations voted the amendment unfavorable on a committee vote and urged that the issue be addressed through Commerce or a fuller process.

Final action: On a roll-call vote the amendment failed, with 44 voting yes and 97 no; the clerk announced "The nays have it and you have declined to amend the bill." Advocates argued the amendment at least established a mechanism for future federal resources; opponents called for a more deliberate committee process and capacity planning before placing such language in the budget vehicle.

What remains: Sponsors said they will continue to press for a dedicated, fully resourced recovery vehicle in committee and off session. The House resumed other business after the vote.