BURLINGTON (LN) — U.S. District Judge Geoffrey W. Crawford denied the request on Tuesday, finding that Section 21 of Act 73, which drastically reduced the number of independent schools eligible for town tuition payments, is a neutral law of general application. The court held that the plaintiffs failed to show a likelihood of success on their First Amendment free exercise and equal protection claims.
The ruling leaves Mid Vermont Christian School ineligible for public tuition funds, a status it lost after the state enacted Act 73 in 2025. The statute requires independent schools to meet new criteria, including a requirement that they received district-funded tuition for at least 25 percent of their enrollment during the 2023-2024 school year, and a prohibition on payments to schools located in districts that operated public high schools as of July 1, 2024.
Mid Vermont, located in White River Junction, argued that the law was enacted with hostility toward religious institutions. The school pointed to statements by nine state legislators who opposed using taxpayer money for religious education, as well as the law's effect of disqualifying all previously approved Catholic and Christian schools program.
Crawford rejected the argument, noting that the statutory text contains no reference to religion and that the eligibility criteria apply equally to secular and religious schools. The court found that 18 secular independent schools also lost eligibility under the new rules, alongside 15 religious schools.
"The statements of the nine legislators identified by Mid Vermont are a thin basis for describing Act 73... as motivated by religious animus," Crawford wrote. "None of the statements were made in floor debate or as part of the Act's legislative history."
The judge emphasized that the law reflects long-standing state policy debates regarding economies of scale, equitable funding, and the consolidation of school districts amid declining enrollment. Crawford concluded that the legislative choice to favor public schools over independent schools provides a rational basis for the changes.
The case previously reached the Second Circuit, which in 2025 issued a preliminary injunction restoring Mid Vermont's membership in the Vermont Principals Association after finding that state education administrators acted with hostility toward the school's religious beliefs. That dispute centered on the school's expulsion following a forfeited basketball game involving a transgender player.
The current litigation focuses solely on the financial impact of Act 73. Crawford noted that because he found no likelihood of success on the merits, he did not reach the issues of irreparable harm or public interest.