A bipartisan coalition of lawmakers gathered in Montpelier Tuesday to watch Republican Gov. Phil Scott sign a major education reform bill into law. But there’s no guarantee that Vermont’s schools, or its taxpayers, will see the transformational changes the legislation aims to deliver.
The bill, , sets in motion a process that could lead to foundational shifts in how Vermont funds and governs public schools. Instead of local voters determining their school funding levels, the state would create a “foundation formula� that establishes budgets for all schools. And the more than 100 school districts governing public schools in Vermont would shrink to roughly a dozen.
Scott said the broad goal is to achieve economies of scale, lowering spending and improving outcomes in an education system that has seen costs surge by nearly 50% since he took office nine years ago. He’s also acknowledged that the proposal would lead to larger class sizes, bigger schools, and the closure of small schools with diminishing enrollments.
"I think there’s so much work to do that I can’t even see the finish line.�Caledonia County Sen. Scott Beck
“Yes, that solution will look drastically different than what we have today,� Scott said Tuesday. “This is just the beginning, and the work we need to do over the summer and into next session will be just as difficult and just as important as what we did this spring.�
The shift to a foundation formula hinges on lawmakers� ability to reach consensus on new district maps next year. And powerful constituencies in the education community and beyond will be working hard during the next legislative session to prevent that from happening.

Superintendents, principals and the state teachers� union, among others, say H.454 will cut funding to schools without addressing the underlying cost drivers � health care, for instance � that have led to higher spending. And they say the process used to craft the legislation failed to account for its potentially devastating impacts on schools.
Defenders of small schools, who consider the new law an existential threat to rural communities, will also attempt to block the next phase of legislation.
Caledonia County Sen. Scott Beck, one of six lawmakers who led the final negotiations over the bill, said Tuesday that he fears its detractors will derail the legislation in 2026.
“This is a significant bill. It has a long way to go,� said Beck, a Republican. “I kind of think of it as a ball of sorts. It’s been inflated and it’s moving in a direction. But I think there’s so much work to do that I can’t even see the finish line.�

Cornwall Rep. Peter Conlon, the Democratic chair of the House Education Committee, said lawmakers will continue to make the case that the proposed education reform plan will rectify deep inequities across district lines.
“Students can live in adjacent towns and have very different experiences,� Conlon said. “It’s past time to address these inequities and remember that these are all of our students, and each deserves a strong education.�