VT H0129

Establishes a new State Aid for School Construction Program within the Agency of Education to provide state debt service subsidies to school districts undertaking eligible construction projects, with a base award of 20% of eligible debt service costs plus up to an additional 20% through bonus incentives.

Creates an 8-member State Aid for School Construction Advisory Board (4 ex officio members including State Treasurer and Commissioner of Buildings, plus 4 appointed members with education/construction expertise) to advise on program implementation, rules, and project prioritization; board sunsets July 1, 2035.

Requires school districts to complete a facilities master planning process with community involvement, regional solutions consideration, and environmental contaminant evaluation before receiving preliminary approval for construction aid.

Creates the School Construction Aid Special Fund to be administered by the Agency of Education for awarding construction aid, facilities master plan grants, administrative costs, and emergency aid up to $100,000 per project.

Takes effect July 1, 2026, and transfers rulemaking authority for school construction from the State Board of Education to the Agency of Education.