The bill H.129 proposes the creation of a new State Aid for School Construction Program within the Agency of Education in Vermont, aimed at providing state debt service subsidies to school districts for eligible construction projects. It establishes a framework that emphasizes efficient public fund usage to modernize school infrastructure, encourages joint construction projects, and prioritizes cost-effectiveness and educational standards. The bill also creates a State Aid for School Construction Advisory Board to guide the program's implementation and outlines the responsibilities of the Agency of Education, including application reviews and maintaining a list of ongoing projects. A School Construction Aid Special Fund is established to financially support the program, and school districts are required to engage in a facilities master planning process with community involvement.

Additionally, the bill introduces new regulations requiring school districts to obtain final approval from the Secretary of Education before starting construction, with specific criteria for application approval. It sets a base award amount for construction aid at 20% of eligible debt service costs, with provisions for emergency aid for urgent projects. An appeals process for municipal corporations dissatisfied with Agency decisions is also included, along with a transfer of rulemaking authority from the State Board of Education to the Agency of Education regarding school construction. The act is scheduled to take effect on July 1, 2026.