Vermont plans $66M disaster relief fund for businesses affected by recent flooding

The House Commerce Committee convened on January 16, 2025, to discuss critical funding and support initiatives in response to recent flooding events in Vermont. The meeting focused on the ongoing economic recovery efforts and the allocation of federal disaster relief funds.

The session began with a discussion on the anticipated demand for funding, with committee members expressing concerns about the potential influx of new applicants seeking assistance. It was noted that the need for support is likely to be continuous, rather than limited to a fixed pool of applicants. Specific demographic groups, including BIPOC individuals, justice-involved persons, rural residents, women, and older Vermonters, were highlighted as priority recipients for funding.

A significant portion of the meeting was dedicated to addressing the economic injuries sustained by businesses due to the floods. While physical damages were partially covered by existing programs, many businesses faced lost revenue due to operational disruptions caused by the flooding. The committee acknowledged the gap in support for these economic harms and discussed the importance of tracking the impact on businesses that did not receive funding.

Senator Welch's announcement of a federal disaster supplemental fund of approximately $66 million was a key highlight. This funding, which is to be administered through the Community Development Block Grant (CDBG) program, aims to provide relief specifically for economic injuries resulting from the floods. The committee proposed a program modeled after the successful 2016 disaster relief efforts following Hurricane Irene, which would offer grants to affected businesses for recovery and technical assistance.

The committee emphasized that no state funds would be required for this initiative, as it would be entirely supported by federal funds. The Regional Development Corporations (RDCs) are expected to manage the program, ensuring that assistance reaches those impacted by the flooding events of 2023 and 2024.

In conclusion, the meeting underscored the ongoing need for economic recovery support in Vermont, particularly in light of recent disasters. The committee plans to stay engaged with the implementation of the federal funding and monitor its effectiveness in aiding local businesses.