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 emphasizes the efficient use of public funds to modernize school infrastructure, encourages joint construction projects, and prioritizes cost, geographic accessibility, and educational standards. The bill establishes a School Construction Aid Special Fund to support the program, tasks the Agency of Education with implementation and oversight, and creates a State Aid for School Construction Advisory Board to advise on project prioritization and policies, with a provision for the board's repeal in 2035.

Additionally, the bill introduces new regulations requiring school districts to obtain final approval from the Secretary before starting construction, including submitting a final application and securing funding for the total project cost. It mandates adherence to safety guidelines for playgrounds and outlines conditions for granting construction aid, including a base award of 20% of eligible debt service costs. An appeals process is established for municipal corporations dissatisfied with Agency decisions, allowing appeals to the Superior Court within 30 days. The rulemaking authority for school construction is transferred from the State Board of Education to the Agency of Education, with existing rules remaining in effect until amended or repealed. The act is set to take effect on July 1, 2026.