The bill H.232, introduced by Representative Waszazak, aims to establish the Vermont Municipal Response and Recovery Special Fund, which will provide direct assistance to municipalities for flood response, prevention, and resiliency projects. The fund will be managed according to existing state financial regulations, with 0.5 percent of General Fund revenue deposited annually. Additionally, the State Treasurer will be authorized to accept gifts and grants for the fund, which will be exclusively used for supporting qualifying municipalities in flood-related initiatives. Notably, disbursement of funds will not occur before July 1, 2026.

Furthermore, the bill mandates that the State Treasurer submit a report to the General Assembly by December 1, 2025, detailing proposed uses and limitations for the fund, guidelines for equitable distribution of funds, and recommendations for legislative amendments to enhance support for flood-impacted communities. The act is set to take effect on July 1, 2025.