H.232, introduced by Representative Waszazak, aims to establish the Vermont Municipal Response and Recovery Special Fund to provide direct financial assistance to municipalities for flood response, prevention, and resiliency projects. The bill mandates that the State Treasurer report to the General Assembly by December 1, 2025, with recommendations on how to distribute funds from the Special Fund and potential amendments to existing programs to prioritize flood-impacted communities for state assistance.

The bill includes the creation of the Special Fund, which will be managed according to existing financial regulations, with 0.5 percent of General Fund revenue allocated annually to it. The Fund will not disburse any funds before July 1, 2026, and will be used exclusively for supporting qualifying municipalities in flood-related projects. Additionally, the State Treasurer's report will cover proposed uses for the Fund, guidelines for equitable distribution, and recommendations for legislative amendments to streamline access to state funds for flood recovery efforts. The act is set to take effect on July 1, 2025.