ANR outlines FY27 budget at roughly $300 million; federal tapering drives 12% decline

The House Appropriations Committee heard presentation of the Agency of Natural Resources’ FY27 proposed budget on Feb. 13, when Secretary Julie Moore told the committee the package is "just shy of $300,000,000" and that roughly half of that total is passed through to municipalities, nonprofits and partner organizations in the form of grants, loans and contracts.

Moore said the department’s decrease from FY26 — about 12 percent — is largely an anticipated reduction in federal one‑time funds such as ARPA and the bipartisan infrastructure/IIJA funding. "About half of our overall budget is passed through to municipalities, nonprofits, partner organizations and businesses in the form of grants, loans and contracts," Moore said, describing the pass‑through character of the ANR appropriations and its implications for local projects.

Agency staff said ANR typically issues about $40 million a year in contracts (more than half to Vermont businesses) and upwards of $60 million a year in grants, and that roughly one‑third of the budget covers salaries and benefits. Staff also noted an adjustment to ADS (core enterprise services) billing that resulted in a gross increase of about $1,450,000 to agency charges; ANR reported partial offsets and an additional ~ $500,000 in general‑fund support to help buy down that change.

The presentation emphasized the operational impacts of shifting federal dollars. Moore said the state revolving fund activity in the Department of Environmental Conservation accounts for much of the agency’s pass‑through volume and that the tapering of federal infrastructure money is the principal driver of the year‑over‑year decline. Committee members pressed the agency on how carryforwards, pilot payments and limited‑service staffing funded by federal grants will be managed as those funds step down.

Staffing and vacancies were addressed: agency figures show an overall vacancy rate of roughly 8 percent (about 53 positions), and ANR said it generally takes about 80 days to fill a vacancy. Moore explained that ANR added about 50 limited‑service positions during recent federal funding peaks and that the agency is working to transition some positions to longer‑term funding while managing gaps where short‑term positions end.

Why it matters: The distribution of pass‑through federal funds affects municipal infrastructure, water projects and conservation work statewide. As those federal streams decline, the committee will track which programs carry forward obligations, where local partners depend on federal flow, and how administration and staffing changes affect delivery.

What’s next: ANR and DEC officials will return for additional briefings, including an April update focused on Lake Champlain/TMDL progress and ARPA project spend‑down risks.