H.165 is a proposed bill aimed at establishing an Inclusive Schools Protection Fund in Vermont to address the anticipated reductions in federal funding for inclusive educational programs. The fund will prioritize support for LGBTQ+ student initiatives, antidiscrimination efforts, inclusive curriculum development, and training for educators focused on equity and inclusivity. Additionally, the bill seeks to provide direct financial assistance to school districts for inclusive programs, ensuring the protection of funding for gender and sexuality alliances, equity coordinators, and mental health and antibullying programs that specifically target marginalized students.

Furthermore, the bill mandates the Agency of Education to report annually on the effectiveness of the state's funding initiatives to promote inclusivity in schools. It also emphasizes the need to explore alternative revenue streams to enhance the resources available for the Inclusive Schools Protection Fund, thereby reinforcing the commitment to fostering an inclusive educational environment for all students.