On June 18, 2026, Vermont Gov. Phil Scott (R) signed H.933, limiting the use of scholarship funds under the Education Freedom Tax Credit (EFTC) so they may benefit only public school students or students attending independent (or nonpublic) schools eligible to receive public funds, among other EFTC and unrelated tax policies. As of June 30, Scott had not indicated whether or not the state would participate in the program.
There are four types of independent, or nonpublic, schools in Vermont, only two of which are eligible to receive public funds — Approved Independent Schools and Therapeutic Approved Independent Schools. To be eligible for public funds, nonpublic schools must meet certain state standards. Under H.933, only Approved Independent Schools and Therapeutic Approved Independent Schools could participate in the EFTC.
H.933 also requires SGOs to award scholarships only for programs that are after school, during a school break, or for supplemental tutoring; for programs that are educational in nature; and for those that do not discriminate against any student because of race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, crime victim status, or disability status.
