Veterans

S 130 expands Vermont's National Guard Tuition Benefit Program to cover graduate degrees and second bachelor's degrees for eligible members. It directly affects Vermont National Guard members pursuing these advanced credentials at Vermont institutions or approved non-Vermont schools with no Vermont equivalent. Key provisions require members to complete a two-year service commitment for each year of benefit received, with repayment required if they fail to fulfill this commitment or leave the Guard without good cause. The program continues to cover in-state tuition rates at Vermont schools and maintains existing eligibility requirements like academic progress and prior use of federal military education benefits.

This bill exempts U.S. military retirement income and survivor benefit payments from Vermont income tax for eligible residents. It adds these income types to Vermont’s list of excluded income in the tax code (specifically amending 32 V.S.A. § 5811), meaning military retirees and surviving spouses won’t pay state tax on these payments. The change applies retroactively to tax years beginning January 1, 2026. It directly affects Vermont taxpayers who receive military retirement or survivor benefits, providing them tax relief on this specific income source.