An act relating to creating the Vermont Municipal Response and Recovery Special Fund

This bill creates the Vermont Municipal Response and Recovery Special Fund to provide direct financial assistance to Vermont municipalities for flood response, recovery, and resiliency projects. The fund will receive 0.5% of annual General Fund revenue, with monies used solely for qualifying municipal flood-related needs. The State Treasurer must submit a report by December 1, 2025, detailing fund distribution guidelines, geographic equity considerations, and potential amendments to existing programs to prioritize flood-impacted communities. The fund cannot disburse money before July 1, 2026, and the bill takes effect July 1, 2025. It directly affects all Vermont municipalities eligible for flood-related assistance.