As the result of state legislation in 2023, Vermont enacted a widescale expansion of child care subsidy eligibility and increased payment rates for providers, funded through a state payroll tax.[1] Subsidies are now available to many more Vermont families than before, including those with moderate and higher incomes (those with incomes up to 575% of the Federal Poverty Line [FPL]). Families with lower incomes (those with incomes at or below 175% FPL) who receive a subsidy also do not have to pay out of pocket (i.e., they have a $0 copayment), which further reduces their cost for child care. Providers also receive higher reimbursement rates for subsidized care and payments to expand their capacity, with the aim of increasing sustainability and applying for capacity-building grants.
From August through September 2024, Child Trends conducted focus groups with 26 ECE administrators (e.g., center directors or family child care owners/operators) and 34 parents/caregivers of young children, including those who do and do not currently participate in Vermont’s Child Care Financial Assistance Program (CCFAP) and parents/caregivers who are new Vermonters (i.e., immigrants and refugees). The purpose of these focus groups was to understand ECE administrators’ and parents’/caregivers’ awareness of and experiences using CCFAP, along with perceived effects of the new CCFAP policies. Throughout the brief, we include select quotes from focus group participants to illustrate these observations.
Read the full brief here, including observations on the subsidy expansion’s successes and challenges.
Reference
[1] Vermont General Assembly, 2023. HB 217(Act 76)
Suggested citation
Steber, K., Caballero, S., Carlson, J., Amadon, S., Banghart, P., Cleveland, J., & Richards, K. (2025). Vermont’s state-funded child care subsidy expansion supports families and providers. Child Trends. DOI: 10.56417/2894d677h