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Feds Issue Warning on Grant Funds After Vermont Identifies Own Mistakes

Federal officials said Vermont must fix a flawed school-accountability system by Dec. 15 or risk losing $100,000 in Title I funding.

  • The federal Department of Education designated the Vermont Agency "high risk" regarding a $41 million grant, demanding immediate corrective action or a $100,000 penalty.
  • Education Secretary Zoie Saunders reported that Vermont spent nearly eight years incorrectly identifying schools needing resources, causing widespread misidentification of achievement gaps.
  • Reporting the mistakes within 24 hours, the agency sought to rectify the errors, yet Secondary Education Kirsten Baesler formally identified the situation as a "significant violation."
  • Supporting Saunders, the Vermont Board voted unanimously last week to challenge the designation, arguing in a letter that the "high risk" label is "premature" due to proactive response.
  • By Dec 15, Vermont must submit a new methodology for identifying underperforming schools to avoid losing $100,000 in Title funding.
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Feds issue warning on grant funds after Vermont identifies own mistakes

Federal officials are telling Vermont to take immediate corrective action after state officials caught mistakes in how Vermont identifies underperforming schools. The state is writing the feds back, saying their reprimand is premature. Read the story on VTDigger here: Feds issue warning on grant funds after Vermont identifies own mistakes.

·Montpelier, United States
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Seven Days broke the news on Tuesday, October 13, 2026.
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