# Vermont education funding and performance scrutiny > Live situation record from CLSTR: https://clstr.news/situations/vermont-education-funding-and-performance-scrutiny > Updated: 2026-10-14T21:11:20.000Z. Sources: 3. Developments: 2. Vermont is facing scrutiny regarding its educational outcomes and resource management. Data from the National Assessment of Educational Progress (NAEP) indicated that Vermont students in fourth grade were outperformed in reading and math by students in Mississippi, despite Vermont spending significantly more per student. State data also showed a widening achievement gap for marginalized students, including those with disabilities and racial minorities. In response to these performance trends, Governor Phil Scott and Education Secretary Zoie Saunders proposed reforms to consolidate school districts and implement a foundation formula funding model to improve resource equity. Concurrently, the state is contesting a “high risk” designation from the U.S. Department of Education concerning a $41 million Title 1 grant. This designation followed the discovery that Vermont had incorrectly allocated resources for nearly eight years, sometimes directing funds to schools with the least need. While the federal government threatened a $100,000 penalty, Governor Scott has called the designation “premature,” and Secretary Saunders has attributed the errors to a complicated process. ## Timeline ### 2026-10-14: Vermont contests federal high-risk designation over $41 million grant Vermont is challenging a U.S. Department of Education “high risk” designation on a $41 million grant after the state identified years of errors in how it allocated resources to address student achievement gaps. 2 sources. https://clstr.news/cluster/vermont-contests-federal-high-risk-designation-over-41-million-grant ### 2026-10-05: Vermont education spending and test scores face scrutiny Vermont faces challenges in education as high per-student spending contrasts with lower NAEP scores compared to Mississippi and a widening achievement gap for marginalized students. 2 sources. https://clstr.news/cluster/vermont-education-spending-and-test-scores-face-scrutiny --- Cite as: Vermont education funding and performance scrutiny. CLSTR, https://clstr.news/situations/vermont-education-funding-and-performance-scrutiny