New Child Trends analysis of administrative data finds that the number of families receiving child care subsidies in Vermont increased by 48 percent, from 5,389 families in July 2023 to 7,983 in April 2025. This increase is at least partly due to 2023 legislation, called Act 76, which aimed to ensure that more families can access affordable care that meets their needs. Act 76 extends eligibility for Vermont’s Child Care Financial Assistance Program (CCFAP) to families with incomes up to 575 percent of the Federal Poverty Level (FPL), while families with incomes at or below 175 percent of the FPL pay no out-of-pocket costs.
Figure: The number of Vermont families receiving a child care subsidy increased by nearly half from July 2023 to April 2025
Source: Child Trends analysis of the Child Development Division Information System (CDDIS) administrative data.
Child care providers have also seen benefits from Act 76, which increased reimbursement rates for children with subsidies and has provided grants to increase programs’ sustainability and capacity. Providers have used these additional funds to do things like increase salaries, offer more benefits, and become more financially stable. Funds to support expanded child care subsidies for families and higher rates and grants for providers come from a state payroll tax.
This rise in the number of families receiving child care subsidies in Vermont comes at a time when the cost of child care is increasingly difficult for most U.S. families to afford. Vermont’s increase in enrollment is especially noteworthy because it includes middle-income families that were previously ineligible for subsidies. In other words, more families are finding the care they need for their children at a reasonable cost. The combination of more families using subsidies and increased support for providers means that fewer families are experiencing cost as a barrier to finding care, a trend that we hope continues in the future.
Want to learn more about Act 76’s impact on families receiving child care in Vermont, or on the state’s providers? Contact Patti Banghart at pbanghart@childtrends.org or Sara Amadon at samadon@childtrends.org.