Vermont towns struggle with flood recovery and debt costs

When up to nine inches of rain pummeled Vermont on July 10, 2023, inundating more than 130 towns, killing two people, and causing an estimated $600 million in damage, Shayd Pecor and his wife evacuated as water overtook their front porch, vtdigger.org reported. One year to the day later, another flood brought four more feet of water into their basement, leaving the Barre City homeowner among 67 residents who applied for Federal Emergency Management Agency buyouts to escape the recurring disaster zone.

Barre City Blocks Buyouts as Homeowners Feel Trapped

Average rainfall in Vermont has increased 21% since 1900, swelling more than 7,000 miles of rivers and accelerating erosion across a state once viewed as a climate haven.

Flood damage across Vermont is projected to cost billions of dollars in the coming century. The state historically relies heavily on federal disaster help, but the Trump administration aims to reduce federal disaster support and shift more recovery duties to state governments. Vermont maintains no disaster reserve and lacks traditional county governments to assist with recovery. Most towns have fewer than 5,000 residents and annual budgets under $5 million, leaving local officials vulnerable to bankruptcy when major storms strike.

Burke and Sutton Borrow Heavily to Repair Roads

Small-town recovery bills have repeatedly strained municipal finances, forcing administrators to borrow millions of dollars while awaiting federal reimbursements. On July 10, 2025, Burke town administrator Jim Sullivan watched clear skies turn to rain as the town faced its third year of flood destruction, bringing three-year damage totals to nearly $1.6 million against a $3.3 million annual budget. Sullivan stated that Burke would have gone bankrupt without FEMA funds after the 2023 and 2024 floods.

Neighboring Sutton, home to fewer than 1,000 people, incurred $1.4 million in road damage in 2025, more than twice its nearly $600,000 highway budget. Town clerk Patricia McClure explained that the municipality took out bank lines of credit each year to pay contractors before FEMA reimbursements arrived. Six miles south in Lyndon, municipal administrator Justin Smith faced weekly repair bills reaching $750,000 against a $2 million annual highway budget. Lyndon secured an $8 million line of credit, another $6.8 million from a bank, and additional financing from the Vermont Bond Bank, estimating total repair costs will hit $20 million by September 2026 while awaiting more than $13 million in FEMA reimbursements.

Trump Administration Denies 2025 Disaster Declaration

Federal support shifted in 2025 when President Donald J. Trump denied Phil Scott’s request for a Major Disaster Declaration for the July storms, stating aid was not warranted. An Associated Press analysis found the administration denied more disaster requests from states that voted against Trump in 2024, including Vermont, than from states that voted for him. FEMA stated that the agency has sent almost $20 million through its Hazard Mitigation Grant Program and more than $160 million in public assistance to Vermont since January 2025 under declarations issued by President Joseph R. Biden.

Governor Scott appealed the denial last November, including a written plea from Burke administrator Jim Sullivan warning of severe tax burdens for seniors, farmers, and single parents. The Trump administration initiated a full-scale review of FEMA following an executive order signed in January 2025.

Frequently Asked Questions About Vermont Flood Recovery

How much did road damage cost Sutton in 2025?

Road damage in Sutton totaled $1.4 million in 2025, more than double the town’s nearly $600,000 highway budget for that year.

How much money is Lyndon waiting for FEMA to reimburse?

As of September, Lyndon was still waiting for FEMA to reimburse more than $13 million that the town spent repairing roads following successive severe storms.

What did the FEMA review council recommend in May 2026?

The council recommended that federal disaster assistance be used only for truly significant events and that states should pay more for disaster recovery.

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