VT H0232

Creates the Vermont Municipal Response and Recovery Special Fund, funded annually by 0.5% of General Fund revenue plus any gifts, donations, and grants received

Fund monies restricted to direct assistance for municipalities for flood response, recovery, and resiliency projects, with disbursements prohibited before July 1, 2026

All interest earned on fund balances remains in the Special Fund rather than reverting to the General Fund

State Treasurer required to report to legislative committees by December 1, 2025 with recommendations on fund distribution guidelines, geographic equity, and balancing response versus mitigation projects

Report must also include recommendations for amending existing programs (such as the Community Resilience and Disaster Mitigation Grant Program) to give flood-impacted communities priority access and simplify grant application processes