The Vermont Department of Buildings and General Services has launched the 2026 Building Communities’ Grants Program, making a total of $900,000 available to support local construction and capital improvement projects across the state. Awards will be made in increments of up to $25,000, department officials said, with applications accepted through Sept. 30.
Who can apply and how awards work
Eligible applicants include municipalities, nonprofit organizations and regional economic development groups. The program also allows farm, food and forest businesses to participate by partnering with their regional development corporations on projects intended to spur local economic activity.
Every award requires matching funds from the recipient. The program is structured to be accessible and straightforward so communities with varying capacities can advance projects that improve infrastructure, local services and quality of life.
- Maximum award per project: $25,000
- Total program funding: $900,000
- Eligible applicants: municipalities, nonprofits, regional development groups; businesses may partner through regional development corporations
- Application deadline: Sept. 30, 2026
- Awards announced: October or November 2026
What the grants can fund
The grants are targeted to construction and capital improvements. That can encompass a range of projects including, but not limited to, renovations of municipal buildings, upgrades to public spaces, improvements to facilities that support local businesses, and small-scale infrastructure enhancements that remove barriers to economic development.
Because awards require matching funds, communities often combine local budget allocations, private donations, in-kind contributions or other grant dollars to meet the requirement. Regional development corporations are positioned to advise potential applicants on partnership options and how to assemble match resources.
Practical steps for applicants
Officials with the department described the program as purposely user-friendly, designed to lower administrative hurdles so towns and community organizations can move quickly. Interested parties are advised to start conversations early with their regional development corporation to identify suitable projects and partners.
Key steps applicants should consider:
- Confirm eligibility — determine whether the municipality, nonprofit or regional group qualifies.
- Identify matching funds — document how the required match will be provided.
- Engage a regional development corporation — especially for farm, food and forest businesses wishing to participate.
- Prepare basic project scope and budget — clarity on construction or capital needs will strengthen an application.
Timing and selection
Applications must be submitted by Sept. 30. Officials expect to announce award recipients in October or November. The program’s timelines make rapid planning important for communities hoping to begin work next year.
| Item | Detail |
|---|---|
| Total program funding | $900,000 |
| Maximum per award | $25,000 |
| Deadline | Sept. 30, 2026 |
| Award announcements | October or November 2026 |
Regional development corporations are the recommended first point of contact for businesses that want to participate but are not directly eligible to apply. Those corporations can serve as the applicant and fiscal sponsor for projects that include private-sector partners.
For many Vermont towns, grants of this size can be catalysts for projects that have been stalled by limited local budgets — such as repairing community centers, upgrading municipal facilities for safety and accessibility, or making small but critical improvements to downtowns and business districts. The state program aims to reach smaller projects that nonetheless have tangible community impact.
Applications, program guidelines and contact information are available through the Vermont Department of Buildings and General Services. Communities and organizations that plan to apply should gather documentation of project scope, budget and matching funds as they prepare materials ahead of the late-September deadline.
The department plans to distribute awards across the state. Officials said the program’s design is intended to help a broad cross-section of towns and regions advance ready-to-start capital projects.
As the application window opens, local leaders and development partners are weighing which projects are most likely to move from planning to construction with a modest state investment paired with local match.
