Vermont Housing Chiefs' SOS for December Aid? HUD Already Footed the Bill
The December shortfall was a temporary cash-flow problem caused by the federal shutdown, not a permanent cut to the program.
A day after Vermont lawmakers were warned of an “urgent” $1.057 million budget shortfall that threatened housing payments for December, reports confirm the immediate crisis has already been resolved by federal action.
On November 5, 2025, the Vermont State Housing Authority (VSHA) and other public housing authorities (PHAs) testified before the House Committee on General and Housing about a “dire situation.” They stated that due to the protracted federal government shutdown, five PHAs would not have enough money to make their December Housing Assistance Payments (HAP) for the Section 8 voucher program.
However, this specific funding cliff, which was a nationwide issue, had already been addressed by the U.S. Department of Housing and Urban Development (HUD) before the legislative hearing took place.
How the December Crisis Was Averted
The December shortfall was a temporary cash-flow problem caused by the federal shutdown, not a permanent cut to the program. By the first week of November, HUD had already taken steps to ensure December payments would be made.
November 1, 2025: HUD officials reportedly contacted national housing organizations, including the Council of Large Public Housing Authorities (CLPHA) and the National Association of Housing and Redevelopment Officials (NAHRO), to confirm that December payments would be obligated for both the public housing and voucher programs.
November 4, 2025: The day before the Vermont hearing, Politico Pro definitively reported that HUD was extending its payments through December, securing the funding that Vermont PHAs had cited as missing.
The data presented to the legislature showed a $1,057,267 estimated shortfall for the month, affecting the VSHA as well as the Burlington, Montpelier, Barre, and Rutland housing authorities. This specific gap is the issue that has been resolved at the federal level.
What Happens Next
With the immediate $1.057 million December crisis averted by HUD’s action, this specific “urgent” request is now off the table.
This removes the emergency pressure from lawmakers and shifts the entire focus to the second, much larger part of the housing authorities’ presentation: a separate, $18.25 million structural request to fund 1,233 state vouchers. This larger ask is unrelated to the shutdown and is part of a much more complex debate about how Vermont should address long-term housing policy.
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