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. The Agency of Education is tasked with implementing the program, reviewing applications, and offering technical assistance. Additionally, the bill creates a State Aid for School Construction Advisory Board, composed of eight members with relevant expertise, to advise on project prioritization and approval criteria. This advisory board is set to be repealed on July 1, 2035, indicating a temporary oversight structure.

The legislation introduces new regulations requiring school districts to obtain final approval from the Secretary of Education before starting construction, with specific criteria for approval including financial arrangements and safety guidelines. It establishes 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 is also introduced for municipal corporations dissatisfied with decisions made by the Agency of Education, allowing appeals to the Superior Court. The authority to adopt related rules is transferred from the State Board of Education to the Agency of Education, with existing rules remaining in effect until amended. The act is scheduled to take effect on July 1, 2026.