State lawmakers are discussing sweeping changes to how Vermont funds public education, with several significant bills moving through the Legislature during the current session.
The centerpiece proposal is a new "Foundation Formula" that would replace Vermont's decades-old yield-based system with a predictable, inflation-adjusted base amount of approximately $15,033 per pupil. The per-pupil amount would be weighted to direct more funding toward students with greater needs, including English Language Learners and economically disadvantaged students. Districts could still vote to spend above the base, though a cap of around 5% is expected.
Special education funding is also being restructured, moving away from a block-grant model toward a weighted disability system. Lawmakers are simultaneously exploring regional Cooperative Education Service Agencies (CESAs) that would allow rural districts to share the cost of high-demand specialists.
After nearly 20 years without state aid for school construction, the Legislature is also finalizing a new building assistance program. Priority funding would target life-safety projects such as HVAC, roofing, and PCB remediation, with a base subsidy of around 20%. Bills H.750 and S.283 are being considered to protect districts that begin urgent projects before the program's anticipated July 2026 launch.