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The top official at the Vermont Department of Public Service says roughly $400 million in federal grants for local programs � many of them aimed at reducing climate-warming greenhouse gas emissions � appear to be at risk of being clawed back by the federal government.

That’s after the Trump administration for a host of federal grants and programs nationwide through a memo the administration later rescinded. This week, a federal judge against the administration’s efforts, which appear to remain at least partially in effect despite the court order.

Public Service Commissioner Kerrick Johnson told members of the House Committee on Energy and Digital Infrastructure Tuesday that the freeze has already proven disruptive and created uncertainty for state employees trying to run programs.

“It changes daily,� he said. “It changes daily in terms of the program. It changes daily in terms of the program and the people we’re required to work with. It changes daily in terms of the interpretation of the language and what’s being sent.�

The projects whose funding is in jeopardy include six programs aimed at expanding broadband access in the state, modernizing the electrical grid and making homes more energy efficient.

They include:

• The HOMES program ($29.3 million): Funding for low-income home weatherization intended as a stopgap to help replace pandemic-era support for the low-income Weatherization Assistance Program, which insulates homes in the state for free. This program was created as a result of the Inflation Reduction Act. 
• The Home Electrification and Appliance Rebate or HEAR program ($29.1 million):  Would dramatically expand rebates for installing cold climate heat pumps for moderate-income households in the state, and provide free heat pumps for low-income households. The program would also provide funding for installing electric vehicle chargers and heat pumps at new, affordable housing developments. HEAR was also created as a result of the Inflation Reduction Act. 
• Solar For All ($62 million): Would create new subsidies to help low-income households get access to rooftop solar and build out a community solar program for the state.
• Grid Modernization Program ($8.4 million): Would help electric utilities fund projects that help reduce power outages
• Building Energy Code and Zero Energy Code Project ($4.8 million): Would provide staff and support to increase code compliance in the state.
• Broadband Equity Access and Deployment Program ($229 million): Funding to expand access to broadband in the state.

Geoff Wilcox, the weatherization director for the state Office of Economic Opportunity, which administers the state’s low-income home weatherization program, said even without federal funding for the HOMES program, the department would still be able to weatherize homes at the same pace this year and next.

“Long term, as in a couple of years down the road, if those funds weren’t to be received by us, that would have a detrimental effect on how many homes we could weatherize,� he said. “Short term � like next year � we’d adjust.�

Weatherization, installing cold climate heat pumps and electrifying homes all play a significant role in Vermont’s Climate Action Plan, which outlines ways the state can cut climate-warming greenhouse gas emissions to comply with the Global Warming Solutions Act.

Beyond emissions reductions, Wilcox says some of the programs in limbo right now ensure that the Vermonters who struggle the most now to afford their energy bills get access to technology and insulation that can help them spend less.

Melissa Bailey with the state energy office said as of Friday afternoon, Vermont’s Solar for All funds were “suspended in the Treasury’s payment portal.�

“The PSD has been obligated funds for the Solar for All Program through an agreement with EPA that they are legally bound to honor…� Bailey said in an email. “We are actively monitoring the administration’s policies as well as associated ongoing federal litigation.�

Bailey said the department is continuing work to stand up the program even as funds are frozen, but that if the money doesn't become available in the coming months, it could be disruptive.

Broadly speaking, Johnson warned the situation is evolving, and noted that many other states across the country are also navigating funding freezes.

He expects the circumstances will almost certainly change � though how remains unclear.

More from ¿ªÔÆÌåÓý: Federal funds for home repairs are running low for Vermont's low income weatherization program

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