The bill S.39 establishes 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. The program emphasizes efficient use of public funds, encourages joint construction efforts, and prioritizes educational needs and best practices in school facilities. A new School Construction Aid Special Fund will be created to support this initiative, and a State Aid for School Construction Advisory Board will be formed to guide the program's implementation, including project approval criteria. The Advisory Board is set to be repealed on July 1, 2035, indicating a temporary oversight structure.

The bill introduces regulations requiring school districts to obtain final approval from the Secretary of Education before starting construction, with a structured application process that includes financial arrangements and safety compliance. It sets a base award amount for construction aid at 20% of eligible debt service costs, with provisions for emergency aid for urgent projects. Additionally, the authority to adopt related rules is transferred from the State Board of Education to the Agency of Education, while existing rules remain in effect until amended. The act is scheduled to take effect on July 1, 2026.