Vermont Microschool Regulations: Complete 2026 Guide for Teachers

Vermont presents one of the most teacher-friendly environments in the country for launching a microschool. The state offers multiple legal pathways, minimal teacher certification requirements, and flexible curriculum standards—making it an attractive destination for alternative educators. However, recent legislation has fundamentally shifted the funding landscape. This comprehensive guide walks you through every requirement, recent changes, and practical steps to get your Vermont microschool up and running.

Introduction: Vermont's Microschool Landscape

What Is a Microschool?

According to the Vermont Agency of Education, "A microschool refers to students gathering together in a small group with adult supervision to learn, explore, and socialize. Microschools can take a variety of shapes and legal forms, from homeschoolers coming together at an enrichment center to a private school committed to small classrooms." [Source: https://education.vermont.gov/home-study]

Vermont's definition is notably broad and accommodating. Unlike many states that create regulatory barriers to small schools, Vermont explicitly embraces the concept and provides structured pathways for different types of educational models.

Three Legal Pathways for Microschools

Vermont law recognizes three distinct ways to operate a microschool, each with different regulatory requirements, funding eligibility, and startup timelines:

1. Home Study Cooperative - The simplest pathway for starting immediately
2. Recognized Independent School - A middle-ground option with institutional identity
3. Approved Independent School - The most rigorous option (currently blocked by moratorium)

Understanding which pathway aligns with your vision is the first critical decision. It determines everything from your startup timeline to your access to public funding to your compliance burden. For most teachers, the home study cooperative or recognized independent school pathways offer the best combination of flexibility and legitimacy.

Recent Major Changes Affecting Vermont Microschools

Act 73 (2025) - Signed into law on July 1, 2025, this major education reform fundamentally restructured Vermont's independent school landscape. According to VTDigger's reporting on the impacts, "More than half of Vermont's independent schools that were previously eligible for public funding will now no longer be eligible." [Source: https://vtdigger.org/2025/07/22/independent-schools-weigh-the-impact-of-vermonts-new-education-reform-law/, Published July 22, 2025]

The practical impact? Only 18 approved independent schools remain eligible for public tuition funding, down from 30+ previously eligible schools. Additionally, 12 religious schools lost their funding access entirely—a controversial development that's now facing federal court challenges.

For teachers starting new microschools, the bottom line is clear: don't count on public tuition funding. Instead, focus on building a strong private tuition model and a loyal family community.

The Three Legal Pathways Explained

Pathway 1: Home Study Cooperative (The Simplest Route)

Best for: Teachers wanting to start immediately with minimal bureaucracy, family groups already interested in cooperative education, educators who don't need institutional recognition.

What It Is

A home study cooperative is fundamentally a group of homeschooling families who pool resources and coordinate instruction while maintaining the legal structure of home education. Unlike traditional private schools, parents retain legal responsibility for their children's education, even when they're participating in coordinated instruction with other families.

Legal Foundation

Home study programs are governed by 16 VSA § 166b [https://legislature.vermont.gov/statutes/section/16/003/00166b]. The statute was significantly simplified by Act 66 in 2023 (effective July 1, 2023), which removed much of the state submission burden.

Key Requirement: The 175-Day Year

Vermont mandates a minimum of 175 days of instruction per year for all educational pathways. This is one of the few non-negotiable requirements. The good news? These days don't follow a traditional school calendar. You could operate year-round, do intensive study blocks, or arrange your calendar however works for your families. The only requirement is that families attest they've provided equivalent instruction time.

Enrollment Process: Remarkably Simple

Here's what makes home study cooperatives so attractive for startup speed:

1. Notice of Intent Form - Each family completes and submits this form individually to the Vermont Agency of Education. [Available at https://education.vermont.gov/home-study]
2. Timing - File at least 10 business days before you want to begin instruction [Source: 16 VSA § 166b]
3. Required Information - Child's name, birth date, all guardians' contact information, and the town of legal residence
4. Acknowledgment - The state provides written confirmation within 10 business days

That's it. No curriculum review, no facility inspection, no teacher qualification approval. Within 10 business days of submission, families receive acknowledgment and can begin operations.

Annual Renewal

You'll need to file a new Notice of Intent each school year, at least 10 business days before starting. The renewal process is identical to the initial filing.

What Act 66 Changed (July 1, 2023)

Before Act 66, home study families had to submit:

• Their minimum course of study documentation to the state
• Evidence of end-of-year assessments
• Names and contact information of instructional providers

As of July 1, 2023, none of these submissions are required anymore. [Source: https://education.vermont.gov/home-study] Families now only need to file the Notice of Intent and maintain records locally. This dramatically reduced compliance burden and is one of the main reasons Vermont is increasingly attractive for microschool founders.

Curriculum Requirements

Vermont requires instruction in specific subject areas, but gives you complete flexibility in how you approach them. Students under age 13 must receive instruction in:

• Reading, writing, and mathematics
• History, government, and citizenship (Vermont and U.S.)
• Comprehensive health education
• Physical education
• English, American, and other literature
• Natural sciences
• Fine arts

Here's the age-based flexibility: Students age 13 and older can omit fine arts, physical education, and comprehensive health education if you choose. [Source: 16 VSA § 166b(b)(2)]

This gives teenagers more academic focus if your cooperative emphasizes college prep or specialized learning.

Assessment Requirements

Families must conduct some form of annual assessment to measure student progress. Vermont recognizes several legitimate assessment methods:

• Standardized testing (administered by a testing service)
• Review by a Vermont-certified teacher (you can hire a consultant for this)
• Parent portfolio with work samples (learning summary plus four dated student work samples)
• Online academy or school grades (if using a platform curriculum)
• GED passage (for eligible students)

Critically, assessment results do NOT need to be submitted to the state. [Source: 16 VSA § 166b] You maintain them locally for your records. This is a huge advantage compared to states with strict assessment reporting requirements. You're not locked into standardized tests; you can use portfolio-based or narrative assessments if that aligns with your pedagogy.

Financial Model

Home study cooperatives typically use one of these funding approaches:

• Shared facilitator costs - Families split the cost of having a lead teacher/coordinator
• Membership dues - Annual or monthly fees for access to facilities, curriculum, and coordination
• À la carte classes - Pay-per-class model where families select which classes to participate in
• Hybrid model - Base membership plus additional fees for specialized instruction

Since there's no public funding available, your revenue comes entirely from tuition or membership fees. This means your pricing needs to be realistic for the families you're trying to serve.

Pros and Cons

Advantages:

• Minimal bureaucracy—10 business days to start
• Maximum educational flexibility on methods and curriculum
• No teacher certification required
• Simple annual renewal
• Not affected by funding moratoriums or policy changes
• Parents can shape educational approach directly

Challenges:

• Zero public tuition funding—entirely private pay
• Parents legally responsible, which some families find concerning
• Less institutional recognition than independent schools
• Requires ongoing family commitment and coordination

Pathway 2: Recognized Independent School (The Middle Ground)

Best for: Teachers wanting institutional identity without seeking public funding, educators wanting clearer separation between family/school roles, schools that will operate with primarily private-pay enrollment.

What It Is

A recognized independent school is a private school that operates under Vermont's enrollment notice system without seeking full state board approval. It's more formally structured than a home study cooperative but simpler than pursuing approved school status.

The key distinction: The school assumes legal responsibility for instruction, rather than parents. This provides clearer institutional identity and may carry more weight with families considering traditional school environments.

Legal Foundation

Recognized independent schools operate under 16 VSA § 166(c) [https://legislature.vermont.gov/statutes/section/16/003/00166]. Unlike home study cooperatives, recognized schools file an "Enrollment Notice" with the state rather than simple notices of intent.

Enrollment Notice Requirements

The process requires more upfront planning than home study but is still straightforward:

1. Timeline - File your Enrollment Notice at least 3 months before your school opening date [Source: 16 VSA § 166(c)]
2. Form - Use the "Recognized Independent School Enrollment Notice" form available from the Vermont Agency of Education [https://education.vermont.gov/documents/edu-recognized-independent-school-enrollment-notice]
3. Required Information:

• Statement that school will operate equivalent to public school time (175+ days minimum)
• Detailed curriculum descriptions for each grade level offered
• Description of how you'll conduct annual student assessments
• Assurance about teacher qualifications, facility safety, and compliance

The 3-month timeline is important. If you want to open in September, you need to file your Enrollment Notice by June 1st.

Annual Reporting

Recognized schools must report to the state:

• By October 1 each year - Names, genders, dates of birth, and addresses of all enrolled students [Source: 16 VSA § 166(c)]
• Within 7 days of withdrawal - Name and address of any student who leaves mid-year

This is straightforward administrative reporting—nothing complicated.

Curriculum Standards

Recognized schools must demonstrate they're providing the Minimum Course of Study (MCOS) defined in 16 VSA § 906. [https://legislature.vermont.gov/statutes/section/16/023/00906] This requires instruction in:

• Reading, writing, mathematics
• Citizenship, history, and government
• Physical education and comprehensive health
• English, American, and other literature
• Natural sciences
• Fine arts

Unlike home study where families describe their approach, recognized schools must provide detailed curriculum descriptions for each grade level in their enrollment notice. You need to explain how each subject area will be taught, what materials you'll use, and how students will demonstrate proficiency.

This is where your educational vision gets articulated clearly. Whether you use Montessori, Classical, project-based, or any other pedagogy, you describe it in your curriculum documentation.

Assessment and Record-Keeping

You must:

• Maintain attendance records for all students
• Conduct annual assessments of student progress
• Report assessment results to families
• Keep enrollment records current

Assessment doesn't need to use standardized tests. You can use performance-based assessment, portfolios, narrative evaluations, or any method that demonstrates student progress. You design your assessment system; the state just verifies you're doing annual assessments.

Teacher Qualifications

For recognized independent schools, Vermont does not mandate state teaching licenses. However, teachers should meet minimum qualifications that show competence in their subject areas. Vermont State Board Rule 2226 suggests teachers should hold:

• A bachelor's degree in their field of instruction, OR
• Substantially equivalent training and experience

[Source: https://education.vermont.gov/sites/aoe/files/documents/edu-state-board-rules-series-2200.pdf]

"Substantially equivalent" is intentionally flexible. It allows for alternative credentials, specialized subject matter expertise, or significant relevant experience. You set the standards for your school within reason.

Accreditation Path (Optional)

If you obtain accreditation from a State Board-approved agency (like New England Association of Schools and Colleges), you only need to file your Enrollment Notice once. Without accreditation, you'll file annually. Given the minimal burden of annual filing, most small schools don't pursue accreditation.

Financial Model

Like home study cooperatives, recognized schools operate entirely on private tuition. You set your own rates, manage your own finances, and keep whatever surplus remains after expenses. Financial reporting to the state is not required unless you're an approved school receiving public tuition.

Pros and Cons

Advantages:

• More institutional identity than home study
• School legally responsible (cleaner family-school relationship)
• Still relatively simple—3-month timeline
• Flexible curriculum approach
• Not affected by moratorium or Act 73 restrictions
• Full control over educational philosophy and methods

Disadvantages:

• More paperwork than home study (enrollment notice, curriculum descriptions)
• 3-month advance planning required
• Annual reporting to state
• No public tuition funding
• More regulatory compliance than home study

Pathway 3: Approved Independent School (Currently Not Available)

Current Status: A moratorium on new approved independent schools has been in effect since 2022. This pathway is effectively closed to new microschool founders at present. However, understanding it provides context for why other pathways are more realistic.

What It Is

An approved independent school undergoes formal state board approval and becomes eligible for public tuition dollars. It's the most rigorous regulatory pathway but historically offered access to public funding.

Current Moratorium

No new approved independent schools can open. [Source: https://education.vermont.gov/independent-schools] This has been the case since 2022 and remains in effect as of November 2025.

If you're interested in pursuing approved status, contact Pat Pallas Gray, the Independent School Consultant at the Vermont Agency of Education:

• Email: pat.pallasgray@vermont.gov
• Phone: (802) 917-2583

He can tell you if the moratorium has lifted and what current requirements are.

Act 73 Dramatically Changed Approved School Funding (July 1, 2025)

Even if the moratorium ends, Act 73 made approved school status far less valuable for new schools. As of July 1, 2025, approved independent schools must meet two stringent criteria to receive any public tuition:

Test 1 - Geographic Location: Your school must be located in a district where at least one public school doesn't operate for some grades. This means schools in well-served districts (with robust public K-12 options) are ineligible. [Source: Act 73 of 2025]

Test 2 - Student Composition: At least 25% of your student enrollment must have been publicly funded students during the prior school year. For a brand-new school with zero previous enrollment, this is impossible to meet. [Source: https://vtdigger.org/2025/07/22/independent-schools-weigh-the-impact-of-vermonts-new-education-reform-law/, Published July 22, 2025]

Together, these requirements mean new schools cannot access public tuition funding. A grandfather clause protects students already enrolled before July 1, 2025, but new enrollments can't use public tuition.

Impact: Only 18 Schools Remain Eligible

Vermont previously had 30+ approved independent schools eligible for public funding. As of July 1, 2025, only 18 approved schools remain eligible. [Source: Vermont Agency of Education] That's a reduction of more than 50%.

The practical message is clear: don't plan your new Vermont microschool around public funding. Focus on private tuition and building family loyalty.

Teacher Qualification Requirements

One of Vermont's greatest advantages for microschool founders is its flexible approach to teacher qualifications. Unlike many states with rigid certification requirements, Vermont recognizes multiple pathways to teacher competency.

Home Study Cooperatives: No Certification Required

In a home study cooperative, parents/guardians serve as the primary educators. There is no state requirement for certification or degrees. [Source: Vermont Agency of Education] Parents can hire tutors, online instructors, or community experts as needed for specific subjects.

The key requirement is that instruction is competent and covers the Minimum Course of Study. Assessment can be done by parents with portfolio work, or you can hire a Vermont-certified teacher to conduct a formal assessment.

Recognized and Approved Independent Schools: Bachelor's Degree or Equivalent

For schools with employees and formal instructional structures, Vermont State Board Rule 2226 [https://education.vermont.gov/sites/aoe/files/documents/edu-state-board-rules-series-2200.pdf] requires teachers to hold:

• A bachelor's degree in their field of instruction, OR
• Substantially equivalent training and experience

Critically, Vermont does not require teachers to hold a Vermont teaching license. [Source: https://www.alleducationschools.com/teacher-certification/vermont/] This is a major advantage over states requiring state licensure for private school teachers.

"Substantially equivalent" gives schools flexibility to hire qualified people without traditional degrees. A physics teacher might have an engineering degree plus 10 years of industry experience. An art teacher might have a fine arts degree and professional artistic portfolio. A math specialist might have advanced certifications from specialized teaching organizations.

You, as the school founder, evaluate whether candidates meet your standards.

Exception: Special Education Teachers

One exception exists: special education teachers must hold Vermont teaching licensure with appropriate special education endorsement. If your school enrolls students with IEPs (Individualized Education Programs), you'll need a licensed special educator.

Curriculum and Assessment Requirements

Vermont's curriculum standards are remarkably flexible. The state specifies what subject areas must be taught but allows complete freedom in how you teach them.

The Minimum Course of Study (MCOS)

Vermont requires all students (regardless of pathway) to receive instruction in these subject areas, defined in 16 VSA § 906 [https://legislature.vermont.gov/statutes/section/16/023/00906]:

1. Basic Communication Skills - Reading, writing, and mathematics
2. Citizenship and Government - Vermont history and government, plus U.S. history and government
3. Health Education - Including specific topics like effects of tobacco, alcohol, and drugs
4. Physical Education
5. Literature - English, American, and other literature
6. Natural Sciences
7. Fine Arts

Age-Based Flexibility

Here's where Vermont becomes attractive for specialized microschools: Students age 13 and older in home study programs can be exempted from fine arts, physical education, and comprehensive health education. [Source: 16 VSA § 166b(b)(2)]

This allows high school focused on STEM, classics, or other specialized areas to drop breadth requirements and dive deep. In middle school or below, coverage is broader.

Pedagogical Flexibility

The MCOS doesn't mandate teaching methods. You can use:

• Montessori - child-led learning with prepared environments
• Classical education - Great Books, Socratic seminars
• Waldorf/Steiner - holistic, arts-integrated approach
• Project-based learning - real-world problems driving instruction
• Reggio Emilia - student inquiry with environmental learning
• Charlotte Mason - literature-rich, habit formation
• Competency-based learning - mastery before moving forward
• Online/hybrid models - combining virtual and in-person instruction
• Any other pedagogical approach

The only requirement is that all MCOS subject areas are covered, however you choose to organize them. Many microschools thrive precisely because they can implement the pedagogy they believe in without being forced into standardized curriculum.

Assessment Requirements

Vermont is equally flexible with assessment. You can choose from:

• Standardized testing - SAT, ACT, CAT, other commercial assessments
• Teacher evaluations - Conducted by a certified Vermont teacher
• Portfolio assessment - Student work samples with narrative analysis
• Proficiency-based assessment - Students demonstrate mastery of standards
• Narrative reports - Written descriptions of student learning
• Online academy grades - If using a curriculum platform with built-in assessment

For home study and recognized schools, assessment results do NOT need to be submitted to the state. You maintain records locally. This is crucial freedom—you're not teaching to a standardized test; you're assessing what matters for your students.

The 175-Day Requirement

All pathways require 175 days of instruction per year. [Source: 16 VSA § 166b(b)(1)] This is roughly equivalent to a traditional school year but more flexible. You could:

• Operate on a traditional August-May calendar
• Do year-round instruction
• Operate intensive summer and semester blocks
• Use a hybrid calendar mixing online and in-person days

The only requirement is families attest they've provided 175+ days of instruction.

Attendance and Record-Keeping Requirements

Record-keeping requirements vary by pathway, but all are manageable for small schools.

Home Study Cooperatives

What You Keep Locally (NOT submitted to state):

• Annual assessment records for each student
• Evidence of 175+ days of instruction
• Enrollment acknowledgments
• Attendance documentation
• Student work samples (recommended)

How Long: Retain records for at least 2 years [Source: https://education.vermont.gov/home-study]

That's it. No state database, no online reporting. You maintain simple records that demonstrate you met basic requirements.

Recognized Independent Schools

What You Maintain:

• Attendance records for all students
• Annual assessment results
• Student enrollment records

State Reporting:

• October 1 each year: Submit student names, genders, dates of birth, and addresses [Source: 16 VSA § 166(c)]
• Within 7 days of withdrawal: Notify state with student name and address

This is straightforward administrative reporting—basically enrollment data.

Approved Independent Schools (For Reference)

If the moratorium lifts, approved schools must provide:

• All records required for recognized schools PLUS
• Assessment data submitted to state (for publicly-funded students)
• Financial reports (audited financials)
• More detailed attendance tracking

Assessment and Testing

Assessment is where Vermont really shines for alternative educators. The state is pragmatic about how student progress is measured.

Assessment Options for Home Study and Recognized Schools

Portfolio Assessment (Often Easiest for Microschools): Parents or teachers compile evidence of student learning including:

• Student self-reflection on learning goals
• Four dated work samples representing different subject areas
• Parent/teacher summary of academic progress

Total time: maybe 2-3 hours per student per year. No standardized test prep needed.

Certified Teacher Review: Hire a Vermont-certified teacher (at reasonable hourly rates, often $50-75/hour) to review student work, conduct an interview, and write an assessment summary. Takes 1-2 hours per student.

Online Academy Grades: If using a platform curriculum like Khan Academy, Outschool, or similar, use platform-generated grades as your assessment. Simple and transparent.

Standardized Testing: If families want traditional testing, you can arrange through a local testing center or testing service.

The flexibility is intentional. Vermont recognizes that different students and learning approaches require different assessment methods.

Record-Keeping: What You Must Document

Keep assessment results showing student progress for each year. Don't submit to state unless specifically requested. If state questions your compliance (rare), you produce evidence of annual assessments.

Enrollment Process by Pathway

Home Study Cooperative Startup Timeline: 10 Business Days

Step 1: Prepare Notice of Intent Get the form from https://education.vermont.gov/home-study. It includes:

• Child's name, age, and birth date
• All guardians' contact information
• Town of legal residence
• Signature of all legally authorized guardians

Step 2: File at Least 10 Business Days Before Start Date Electronic submission (preferred) or mail to:

• Home Study Office
• Vermont Agency of Education
• 1 National Life Drive, Davis 5
• Montpelier, VT 05602-2501

Step 3: Receive Acknowledgment Within 10 business days, the state sends written acknowledgment that enrollment is complete.

Step 4: Begin Instruction Once you have acknowledgment, families can begin their 175-day instructional year.

Step 5: Maintain Records Keep attendance/progress documentation throughout the year for your own records.

Step 6: Annual Renewal Each school year, file a new Notice of Intent at least 10 business days before your start date.

Recognized Independent School Startup Timeline: 3 Months

Step 1: Prepare Enrollment Notice (8-10 weeks before opening) Use the form from https://education.vermont.gov/documents/edu-recognized-independent-school-enrollment-notice and include:

• Statement about school operational schedule
• Detailed curriculum descriptions for each grade level
• Assessment plan
• Teacher qualification assurances
• Facility safety and compliance statements

Step 2: File 3 Months Before Opening Submit to Vermont Agency of Education. Check that deadline is met—if not received by February 15, the state will contact you about deficiency.

Step 3: Follow Up After submission, you may want to check in with Pat Pallas Gray to confirm receipt and address any questions.

Step 4: Develop Operations While waiting for acknowledgment, set up your facilities, enroll students, and prepare curricula.

Step 5: Open School Once you have acknowledgment and 175+ days of instruction planned, you're ready to operate.

Step 6: Annual Renewal File updated Enrollment Notice annually (unless you obtain accreditation, which makes it one-time filing).

Important Contacts

Home Study Program Questions:

• Website: https://education.vermont.gov/home-study
• Fax: (802) 828-6433
• Mail: Home Study Office, 1 National Life Drive, Davis 5, Montpelier, VT 05602-2501

Recognized or Approved School Questions:

• Contact: Pat Pallas Gray
• Email: pat.pallasgray@vermont.gov
• Phone: (802) 917-2583
• Address: Vermont Agency of Education, 1 National Life Drive, Davis 5th Floor, Montpelier, VT 05620

Facility, Safety, and Health Requirements

Basic Standards for All Schools

Vermont requires all schools to maintain facilities that:

• Comply with all state and federal fire, health, safety, chemical, and building codes [Source: 16 VSA § 166(b)]
• Have safe drinking water and sanitation facilities
• Include emergency contact information for all students
• Maintain first aid supplies and procedures

For home study cooperatives, requirements are minimal since learning happens in homes or temporary spaces. Just ensure the spaces are safe for learning.

For recognized schools with dedicated facilities, you'll need to:

• Pass basic health and safety inspections
• Comply with local zoning for educational use
• Have clear fire evacuation routes
• Meet ADA accessibility standards if applicable

Emergency Planning (Act 29 - 2023)

Recognized and approved independent schools must develop an all-hazards emergency operations plan covering:

• Fire evacuations
• Weather emergencies (tornado, extreme cold)
• Medical emergencies
• Security threats
• Mental health crises

[Source: https://education.vermont.gov/vermont/act-29-school-safety-and-security]

The Vermont Agency of Education provides templates. You coordinate with local fire and police departments. Most plans are simple 5-10 page documents that every school should have anyway.

For home study cooperatives, basic emergency preparedness is prudent but not state-mandated.

Insurance Recommendations

While not state-mandated, responsible schools carry:

• General liability insurance ($1-2M minimum) - Covers injuries, property damage
• Professional liability insurance - Covers educational malpractice claims
• Workers' compensation - Required if hiring employees
• Property insurance - If owning/leasing facility

Insurance costs are reasonable ($500-3,000/year for small schools depending on size and coverage).

Special Education and Nondiscrimination

Home Study Cooperatives

Parents retain responsibility for students with IEPs or 504 plans. When filing Notice of Intent, parents attest they'll provide "appropriate adaptations" for students with disabilities.

They can request special education services from their local public school district even while enrolled in home study. The district must evaluate and provide services if the student qualifies.

Recognized Independent Schools

You choose your enrollment policy. Recognized schools can establish their own criteria, including whether to serve students with special needs. You can require families to disclose disabilities during the application process and accept/decline based on your capacity.

Disclosure is important: families must understand your capabilities before enrolling.

Approved Independent Schools (If Moratorium Lifts)

Approved schools accepting public tuition funds must enroll students with IEPs or 504 plans unless you exclusively serve students with special needs. [Source: 16 VSA § 166(b) and State Board Rules 2223]

This is the trade-off for public funding access: You can't cherry-pick only easy-to-serve students while taking public money.

Financial Considerations and the Act 73 Impact

This is perhaps the most important section for new microschool founders to understand.

The Public Funding Reality: Act 73 (2025) Closed the Door

As recently as 2024, Vermont had 30+ approved independent schools eligible to receive public tuition funding. On July 1, 2025, that number dropped to 18 schools eligible for public tuition. [Source: Vermont Agency of Education; https://vtdigger.org/2025/07/22/independent-schools-weigh-the-impact-of-vermonts-new-education-reform-law/, Published July 22, 2025]

The reduction was massive: more than 50% of previously eligible schools lost eligibility.

Why the dramatic change? Act 73 imposed two new requirements for schools to receive any public tuition:

Requirement 1: Geographic Location Test Your district must lack a public school option for at least some grades. If your town has public K-12 schools, you're ineligible. This eliminates schools in well-served districts.

Requirement 2: 25% Publicly-Funded Student Threshold At least 25% of your students must have been publicly funded in the prior year. For a brand-new school with zero prior enrollment, this is impossible. [Source: Act 73 of 2025]

Impact on Religious Schools

The impact was particularly severe for religious schools. 12 religious schools lost public funding eligibility, including major institutions like Rice Memorial High School and Mount St. Joseph Academy.

Vermont Public reported: "More than half of Vermont's independent schools that were previously eligible for public funding will now no longer be eligible." [Source: https://vtdigger.org/2025/07/22/independent-schools-weigh-the-impact-of-vermonts-new-education-reform-law/, Published July 22, 2025]

Ongoing Legal Challenges

Religious school advocates argue Act 73 violates the U.S. Supreme Court's decision in Carson v. Makin (2022), which held that if states fund private schools, they cannot exclude religious institutions.

Mid Vermont Christian School filed a federal lawsuit in October 2025 challenging Act 73's constitutionality. The case is in early stages and may take years to resolve. [Source: https://vtdigger.org/2025/11/04/mid-vermont-christian-school-challenges-vermonts-new-education-reform-law-in-federal-court/, Published November 4, 2025]

The outcome is uncertain. Until resolved, assume you cannot plan on public tuition funding for a new school.

What This Means for Your Microschool

Don't base your business plan on public tuition funding. Whether you pursue home study cooperative, recognized independent school, or wait for approved school status, focus on private tuition and building family loyalty.

Private Tuition Models That Work

Model 1: Traditional Tuition Set monthly or annual tuition rates reflecting your costs. Many Vermont microschools charge $8,000-$18,000/year depending on grade level and programming.

Model 2: Cooperative/Membership Families pay membership dues (often $150-400/month) and commit volunteer hours. This reduces instructional costs since some support comes from parent participation.

Model 3: Tiered Tuition Offer different program levels (part-time enrichment, full-time academics, specialized tracks) at different price points.

Model 4: Sliding Scale Base tuition on family ability to pay. This increases accessibility and builds community commitment.

Model 5: Grants and Sponsorship Pursue education grants, local sponsorships, and community fundraising to reduce family tuition burden.

Most successful microschools combine approaches—e.g., base tuition plus grants plus some parent fundraising.

Critical Compliance Checklist

Before Your Home Study Cooperative Opens

• [ ] File Notice of Intent for each family (at least 10 business days before start date)
• [ ] Develop Minimum Course of Study covering all required subject areas
• [ ] Create plan to provide minimum 175 days of instruction
• [ ] Select annual assessment method(s) for each student
• [ ] Establish record-keeping system (attendance, assessment, student work)
• [ ] Create family communication plan and enrollment contract

During Home Study Operation

• [ ] Maintain minimum 175 instruction days throughout year
• [ ] Conduct annual assessment of each student's progress
• [ ] Keep assessment records for at least 2 years
• [ ] Maintain attendance documentation
• [ ] Keep enrollment acknowledgments

Annual Renewal for Home Study

• [ ] File new Notice of Intent 10 business days before each school year
• [ ] Update any enrollment changes
• [ ] Verify all families have filed their individual forms

Before Your Recognized Independent School Opens

• [ ] File Enrollment Notice at least 3 months before opening date
• [ ] Develop detailed curriculum descriptions for each grade
• [ ] Describe annual assessment procedures
• [ ] Verify all instructors meet bachelor's degree or equivalent standards
• [ ] Ensure facility complies with health and safety codes
• [ ] Develop all-hazards emergency operations plan
• [ ] Create harassment, hazing, bullying prevention policies
• [ ] Establish attendance and enrollment record system
• [ ] Obtain general liability insurance

During Recognized School Operation

• [ ] Maintain attendance records for all students
• [ ] Conduct annual assessments and report to families
• [ ] Provide minimum 175 days of instruction
• [ ] Keep enrollment records current
• [ ] Maintain facility safety and health standards
• [ ] Update emergency plan annually

Annual Reporting for Recognized Schools

• [ ] Submit student enrollment data by October 1 (names, genders, DOB, addresses)
• [ ] File renewal Enrollment Notice (unless accredited) 3 months before school year
• [ ] Update emergency operations plan
• [ ] Notify state within 7 days of any student withdrawal

Step-by-Step Guide to Starting Your Vermont Microschool

Phase 1: Decision and Research (Weeks 1-2)

1. Choose your legal pathway - Home study cooperative, recognized school, or wait for approved status?
2. Assess your market - Who are your target families? What need does your school fill?
3. Define your philosophy - Montessori? Classical? Project-based? Hybrid?
4. Research existing schools - Visit similar schools, talk to families, understand your competition
5. Connect with Vermont networks - Join Vermont Home Education Network (VHEN) and Vermont Independent Schools Association

Phase 2: Program Development (Weeks 3-8)

1. Create your Minimum Course of Study plan - How will each subject area be taught?
2. Select curriculum resources - What materials, books, online platforms will you use?
3. Develop assessment approach - Will you use portfolios, standardized testing, narrative reports?
4. Plan your 175-day calendar - Traditional August-May? Year-round? Intensive blocks?
5. Write parent handbook and enrollment agreement - Set expectations, policies, costs

Phase 3: Infrastructure Setup (Weeks 6-12)

1. Secure your location - Home-based for cooperative? Leased facility for recognized school?
2. Create enrollment forms and contracts - Include essential information, policies, tuition terms
3. Set up record-keeping system - Attendance, grades, assessments, enrollment data
4. Develop communication plan - How will you keep families informed?
5. Calculate startup and operating costs - Facility, materials, marketing, insurance
6. Set tuition rates - Based on costs, market rates, family ability to pay

Phase 4: Registration (Weeks 8-14)

1. File Notice of Intent (home study) - Submit 10 business days before start, OR
2. File Enrollment Notice (recognized school) - Submit 3 months before opening
3. Follow up with Vermont Agency of Education - Confirm receipt, address any questions
4. Develop emergency operations plan - Evacuations, medical emergencies, security
5. Obtain insurance - General liability at minimum
6. Finalize facility - Clean, organized, safe learning spaces

Phase 5: Recruitment (Weeks 10-16)

1. Create marketing materials - Website, brochures, social media presence
2. Host information sessions - Open houses, parent information meetings, school tours
3. Conduct family interviews - Assess fit, answer questions, build relationships
4. Finalize enrollments - Collect applications, agreements, deposits
5. Communicate start details - Calendar, schedule, what to bring, expectations

Phase 6: Launch (Weeks 14-20)

1. Set up learning spaces - Desks, materials, resources organized and ready
2. Prepare first month lessons - Detailed plans for opening week and month
3. Create student orientation - Welcome activities, expectations, community building
4. Begin instruction - Start your 175-day instructional year
5. Maintain records - Start tracking attendance and documenting progress
6. Regular family communication - Weekly updates, progress reports, concerns

Ongoing Year 1

1. Monthly check-ins with families - Address concerns, celebrate progress
2. Quarterly progress reviews - Assess what's working, what needs adjustment
3. Plan annual assessment - Prepare portfolios, arrange testing, or teacher review
4. Document everything - Keep records for compliance and continuous improvement
5. Annual renewal filing - Prepare Notice of Intent/Enrollment Notice for Year 2

Key Resources and Contacts

Vermont Agency of Education

Home Study Programs:

• Website: https://education.vermont.gov/home-study
• Enrollment forms: https://education.vermont.gov/vermont-schools/school-operations/home-study/paper-forms-for-homestudy-enrollment
• Assessment templates: https://education.vermont.gov/end-year-assessment-eoya
• Minimum Course of Study guidance: https://education.vermont.gov/minimum-course-study-and-curriculum-development

Independent Schools (Recognized and Approved):

• Website: https://education.vermont.gov/independent-schools
• Contact: Pat Pallas Gray, pat.pallasgray@vermont.gov, (802) 917-2583

State Board Rules:

• Rule Series 2200 (Independent Schools): https://education.vermont.gov/sites/aoe/files/documents/edu-state-board-rules-series-2200.pdf

Vermont Homeschool and Microschool Organizations

Vermont Home Education Network (VHEN)

• Website: https://vhen.org
• Purpose: Advocacy, legislation monitoring, homeschool community support
• Services: Finding assessors, resources, networking

Vermont Independent Schools Association (VISA)

• Purpose: Advocacy for independent schools
• Role: Legislative representation, professional development
• Contact through Vermont Agency of Education

Vermont Statutes and Legal References

Home Study Law:

• 16 VSA § 166b: https://legislature.vermont.gov/statutes/section/16/003/00166b

Independent School Law:

• 16 VSA § 166: https://legislature.vermont.gov/statutes/section/16/003/00166

Minimum Course of Study:

• 16 VSA § 906: https://legislature.vermont.gov/statutes/section/16/023/00906

Recent Legislation:

• Act 73 (2025): https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT073/ACT073%20As%20Enacted.pdf
• Act 66 (2023): Home study simplifications

Federal Resources

U.S. Department of Education - Vermont State Regulations: https://www.ed.gov/birth-grade-12-education/education-choice/state-regulation-of-private-and-home-schools/vermont-state-regulations-of-private-and-home-schools

Frequently Asked Questions

Which pathway should I choose?

Start with home study cooperative if:

• You want to launch within 10 business days
• You have families already interested in the cooperative model
• You want minimal bureaucracy
• You plan to operate with parent involvement
• You're flexible on institutional formality

Choose recognized independent school if:

• You want institutional identity (separate from family homeschooling)
• You have a 3-month runway before opening
• You're willing to develop detailed curriculum descriptions
• You want clearer school-family separation
• You plan primarily private-pay enrollment

Plan for approved independent school if/when moratorium lifts:

• You have significant backing and can wait
• You're willing to accept the most rigorous requirements
• Geographic and enrollment requirements could be met (unlikely for new schools)
• You understand public funding is not currently available

Do I need a Vermont teaching license?

No. Vermont does not require private school or home study instructors to be state-licensed. Teachers should hold a bachelor's degree in their field or have substantially equivalent experience/training, but licenses aren't required. This is a major advantage compared to many states.

Can I use alternative pedagogies like Montessori or Waldorf?

Absolutely. Vermont has no pedagogy mandates. You can implement Montessori, Waldorf, Classical, project-based, competency-based, or any other approach. The only requirement is that the Minimum Course of Study subject areas are covered (reading, math, history, literature, sciences, health, arts, PE).

What assessment should I use?

You decide. Options include portfolios (work samples plus narratives), standardized testing, online academy grades, certified teacher review, or proficiency-based assessment. The flexibility is intentional. Don't use assessment methods just because traditional schools do; choose what measures what matters for your students.

Can I operate from home?

For home study cooperatives: Yes, absolutely. Families meet in homes, community centers, or rented spaces. No facility requirements from the state.

For recognized schools: Yes, with considerations. Check local zoning for educational use. Some towns allow home-based schools with proper permits; others restrict them. Verify with your town zoning office. A dedicated facility (even rented) often provides more credibility with families.

What insurance do I need?

Recommended coverage:

• General liability ($1-2M): Covers injuries, property damage—essential
• Professional liability: Covers educational claims
• Workers' compensation: Required if hiring employees
• Property insurance: If you own or rent a facility

Costs are typically $500-3,000/year for small schools. Shop among education-focused insurance brokers.

Will Act 73 change again?

Possibly. Multiple lawsuits are challenging Act 73's constitutionality, particularly regarding religious school exclusion. Federal courts may overturn or modify the law. However, don't plan based on legal hopes. Build your model on current law and existing family support. If funding availability improves later, that's a bonus.

How much should I charge for tuition?

It depends on your costs:

• Facility rent: $500-3,000/month
• Teacher salaries: $3,000-5,000/month (if applicable)
• Curriculum materials, supplies, insurance
• Utilities, equipment, professional development

Calculate total annual costs, divide by expected enrollment, add reasonable margin. Most Vermont microschools charge $8,000-$18,000/year for K-8, higher for specialized programming.

Consider sliding scale or financial aid if you want economic diversity. Many successful schools offer scholarships for qualifying families.

Conclusion: Vermont's Open Door for Microschools

Vermont stands apart for its pragmatic, teacher-friendly approach to microschools and alternative education. The state explicitly recognizes and welcomes diverse educational models. The recent simplification of home study laws (Act 66) removed compliance barriers. And most importantly, no teaching license is required—meaning a teacher passionate about her approach can launch a program based on excellence rather than credentials.

Yes, Act 73 closed the public funding door. Yes, the regulatory landscape is evolving. And yes, there's legal uncertainty about several provisions.

But none of this undermines Vermont's fundamental openness to educational innovation.

Your Realistic Path Forward

For most teachers considering a Vermont microschool, the path is clear:

1. Choose home study cooperative or recognized independent school - Both are accessible, manageable, and protected from current legislative uncertainty
2. Build around private tuition and family commitment - Don't plan on public funding; it's not currently available
3. Focus on educational excellence - Create a strong learning community that families value enough to support financially
4. Maintain compliance - File the paperwork, keep records, document assessments; it's all straightforward
5. Stay connected - Join VHEN or VISA, monitor legislative updates, adapt as the landscape evolves

Vermont's commitment to educational choice runs deep. The state has historically been skeptical of overly restrictive regulation and trusting of families and educators to make good decisions. That philosophy remains, even as specific laws shift.

By focusing on your educational vision, building a loyal family community, and maintaining basic compliance, your Vermont microschool can thrive regardless of the shifting policy environment.

Disclaimer

This guide provides educational information about Vermont microschool regulations based on current law and agency guidance as of November 19, 2025. It is not legal advice. Teachers considering starting a microschool should consult with qualified legal counsel and contact the Vermont Agency of Education directly for personalized guidance and verification of current requirements. Laws change; always verify current requirements through official sources before finalizing decisions.