When up to nine inches of rain pummeled Vermont on July 10, 2023, Shayd Pecor and his wife, Laurie, evacuated as floodwaters overtook their front porch, kicking off a cycle of relentless natural disasters that left small towns across the state grappling with millions in damages and a retreating federal safety net.
That summer storm inundated more than 130 towns, killed two people, and caused an estimated $600 million in damage. For the Pecors, it meant four months away from home. Exactly one year later, another flood brought four feet of water into their basement. Seeking an exit, Pecor was among 67 homeowners in Barre City who applied for a Federal Emergency Management Agency buyout, which would have funded the purchase of their home at pre-storm value in exchange for demolishing the house and leaving the land undeveloped. But city officials blocked the application, fearing the loss of tax revenue from dozens of properties would sink the municipality of 8,200 people.
We feel trapped,
Pecor said, as reported in an ongoing yearlong investigation by vtdigger.org, published in partnership with FRONTLINE (PBS) under the title The Coming Storm.
Trump: "We're looking at the whole concept of FEMA. I like, frankly, the concept when North Carolina gets hit, the governor takes care of it. When Florida gets hit, the governor takes care of it. Meaning the state takes care of it … I'd like to see the states take care of… pic.twitter.com/LGeK6Bw5b1″
Small Town Budgets Collide With Millions in Road Damage
Vermont was long viewed as a climate haven, but average rainfall has surged 21% since 1900, pressuring the state’s more than 7,000 miles of rivers and threatening rural communities that lack traditional county governments or internal disaster reserves. Most Vermont towns have fewer than 5,000 residents and annual budgets under $5 million.
In the town of Burke, administrator Jim Sullivan faced road and bridge repair bills totaling nearly $1.6 million across three consecutive years of flooding in 2023, 2024, and 2025, against an annual budget of $3.3 million. In neighboring Sutton, with fewer than 1,000 residents, road damage hit $1.4 million in 2025 alone—more than double the town’s $600,000 highway budget. Town clerk Patricia McClure and road foreman Shane Heath relied on bank lines of credit to stay afloat, waiting anxiously for FEMA reimbursements before those notes came due.
Six miles south in Lyndon, municipal administrator Justin Smith watched flash flooding wash away four houses and major roads on July 30, 2024, while the town was still awaiting funds from the previous year. Lyndon accumulated massive debt, taking out an $8 million line of credit and another $6.8 million from a bank before turning to the Vermont Bond Bank. By September 2026, Smith estimated total repairs reached $20 million, with more than $13 million still pending in FEMA reimbursements.
In a written plea included in an appeal to the federal government, Jim Sullivan wrote that without FEMA assistance, the additional tax burden would hit residents hard, especially seniors, farmers and single parents.
The Shift in Federal Disaster Policy
The financial strain intensified when President Donald J. Trump denied Republican Gov. Phil Scott’s request for a Major Disaster Declaration following the 2025 flooding, asserting that aid was not warranted. According to an Associated Press analysis, the administration has denied more disaster requests from states that voted against it in 2024 than from states that voted for it.
While FEMA declined an interview with vtdigger.org and did not fulfill a Freedom of Information Act request regarding the 2025 denial, an agency spokesperson noted in an emailed statement that FEMA has provided nearly $20 million through its Hazard Mitigation Grant Program and over $160 million in public assistance to Vermont since January 2025, unlocked under previous disaster declarations by President Joseph R. Biden.
The Trump administration has pursued plans to shrink FEMA and shift recovery burdens to state and local governments. Following an executive order in January 2025 establishing a review council, a final report issued in May 2026 recommended limiting federal assistance to truly significant events while urging states to pay more for recovery.
Shrinking Federal Support Risks Population Drain
While proposals to alter the Stafford Act face a long road in Congress, local leaders warn that shrinking federal support leaves vulnerable communities exposed. Tatyana Deryugina, an associate professor of finance at the University of Illinois at Urbana-Champaign who studies environmental risk, noted that towns forced to choose between taking on debt or letting infrastructure deteriorate risk falling into population drain and declining public services.
