How Vermont’s landmark education bill may set a new standard for US schools

Vermont has recently passed a landmark education reform bill that many see as one of the most significant overhauls of the state’s public education system in decades. The 155-page legislation, known as H. 454, was approved despite fierce dissent from many Democrats, educators, and local communities. With its ambitious goals to reshape school funding and governance, this bill could influence education reform efforts beyond Vermont and across the US.The bill primarily aims to transition Vermont’s K-12 school funding to a foundation formula, where the state rather than local voters controls the majority of school spending. It also mandates wide-scale school district consolidation, requiring districts to have at least 4,000 students. This approach, its supporters argue, will stabilize property taxes, direct funds to where they are most needed, and create a more efficient governance system.Reshaping education funding and governanceAt the heart of H. 454 is the shift to a foundation formula, which distributes a per-pupil grant from the state to school districts, replacing the current system where local property taxes play a dominant role. This change aims to reduce inequalities in funding between wealthy and poorer communities, a longstanding issue in Vermont’s education system.As reported by the Vermont Public, Rep. Emilie Kornheiser described the reform as a necessary successor to Act 60, a landmark 1997 law that initially improved fairness in education funding and taxation. However, Kornheiser explained, “Today, in 2025, schools and communities across the state are at levels of inequality of opportunity and taxation that are on par with our state before Brigham,” referring to the state Supreme Court decision that led to Act 60. “This is unacceptable, and that is why we are here today.”The bill also includes provisions to consolidate school districts, which has drawn significant concern from rural communities worried about losing local control and potential school closures. Minimum class sizes and larger district requirements could force many small schools to merge or shut down.Balancing reform with local concerns and political challengesDespite its transformative goals, H. 454 faces major hurdles before full implementation. The bill contains “off-ramps,” including a requirement that lawmakers approve new school district maps before other reforms take effect. This redistricting must occur by 2028, and the process is expected to be highly controversial, especially since it coincides with the 2026 election cycle.The legislation passed the Senate with a 17-12 vote and saw bipartisan support, although more Republicans backed the bill than Democrats. In the House, the bill passed by voice vote, with a later roll call showing 96 in favor and 45 opposed. This mixed support reflects the complexity and divisiveness of the reform.Educators and school leaders, represented by groups like the Vermont-NEA and the Rural School Community Alliance, have voiced strong opposition. They argue the bill was rushed, lacks clarity, and does not address key cost drivers such as healthcare. Michael Clark, superintendent of the Orange Southwest School District, warned in an open letter quoted by the Vermont Public that the bill “appears to be barreling toward a crash landing, one that could have lasting consequences for Vermont’s children, communities, and public schools.“Potential impacts on taxpayers and school fundingThe financial implications of the reform remain uncertain, with preliminary analyses raising alarm about possible tax increases in communities resistant to higher taxes. Lawmakers have promised that taxpayers will ultimately be held harmless, and the formula included in the bill is a placeholder pending further studies on special education, career and technical education, and secondary schools.One key revenue proposal in the bill is a new property tax classification that would allow increased taxes on second homes. This measure is designed to offset the tax burden on primary residences but depends on the successful passage of the new district maps and the foundation formula.Implications for public and private schoolsThe bill also addresses the contentious issue of private school vouchers. While some provisions that could have severely restricted public funding for private schools were removed, the final legislation still limits voucher use. Families can no longer use vouchers for out-of-state private schools or private schools located in districts with public alternatives.Rep. Laura Sibilia acknowledged opposition from those defending private school interests but called the bill “an improvement on the status quo,” as quoted by the Vermont Public. She urged lawmakers to consider “who stands to benefit if we do nothing,” implying that reform is necessary despite resistance.A model for US education reform?Vermont’s comprehensive approach to tackling funding inequities and governance challenges is drawing attention as a potential model for other states grappling with similar issues. The success or failure of H. 454 could set important precedents for how states address educational funding disparities, school district consolidation, and the role of private schools in publicly funded education.As the bill moves toward implementation, many across the US will be watching Vermont closely to see whether this bold experiment can deliver on its promise to create a fairer, more sustainable public education system for all students.