Vermont Ends Cold Weather Hotel Support Amid Medicaid Funding Gap

Approximately 160 households in Vermont will lose access to hotel rooms following the conclusion of cold weather rules for the state’s General Assistance program during the first week of April 2026.

The decision comes as the administration of Governor Phil Scott and the state legislature work to reduce the use of hotels as primary shelters and increase the capacity of traditional shelters to assist individuals in regaining stability.

Medicaid Waiver and Funding Limitations

Anti-homeless advocates had previously pointed to a federal Medicaid waiver that authorized Vermont to utilize state Medicaid funds for a program designed to supplement rent for individuals at risk of homelessness. However, state officials clarified during a press conference in the first week of April 2026 that This represents not currently a viable option because the program is still under development.

Vermont Human Services Secretary Jenney Samuelson stated that while the waiver provides the legal authority to implement such a program, it does not provide the necessary funding or infrastructure.

The state would need to put up significant investments including enrolling housing providers, landlords, developing and building IT systems,

Jenney Samuelson

Samuelson added that these preparatory steps require significant resources and time, preventing the state from using the waiver as an immediate solution for those losing hotel assistance.

Legislative Shifts in Homelessness Response

The current situation follows a broader legislative effort to overhaul how Vermont addresses homelessness. Bill H.91, which was discussed in the Statehouse in April 2025, proposed a fundamental change to the state’s response system by dissolving the existing motel voucher program.

Under the proposed H.91 framework, the state would introduce the Vermont Homeless Emergency Assistance and Responsive Transition to Housing program. This initiative would shift decision-making power and funding from the state to five regional anti-poverty nonprofits.

These community action agencies, along with a statewide organization assisting people fleeing domestic violence, would manage the funds currently used for building and operating local shelters. The state would transition into an oversight role, with proponents arguing that a community-centered response is a more effective use of state resources than the centralized state-run model.

The need for such an overhaul was highlighted by Representative Jubilee McGill, D-Bridport, who stated in April 2025 that the state had become stuck in a cycle of using temporary measures without a clear path out of the crisis.

Context of Previous Housing Instability

The end of cold weather assistance in April 2026 follows previous instances of housing instability within the state’s hotel-based programs. On April 1, 2025, residents at the Travelodge motel in South Burlington were required to leave the housing program if they had exhausted their 80-day limit and did not qualify for an exemption.

in July 2025, advocates called for emergency government action after hundreds of households were evicted from hotel and motel rooms, seeking the reinstatement of funds to prevent homelessness.

These challenges have coincided with broader financial pressures on the state. In October 2025, Vermont lawmakers pledged to fully fund Supplemental Nutrition Assistance Program (SNAP) and Low Income Home Energy Assistance Program (LIHEAP) benefits to support 65,000 residents during a federal government shutdown. Governor Phil Scott noted at that time that the state might not be reimbursed for using its own funds to fill those gaps.