2024 Recap: Public Investment in Vermont's Child Care System is Working
In 2023, Vermont made history by passing Act 76 – initiating a $125 million annual investment into the state’s child care system to create affordable, equitable access to child care. Vermont has been leading the way in child care transformation, and in 2024, we saw that Act 76 is clearly working!
- Act 76 is improving affordability for families.
- Act 76 is increasing child care access.
- Act 76 supports economic growth.
Act 76 is Improving Affordability for Families
In 2024, Act 76 expanded the income eligibility for child care tuition assistance. Now, a family of four earning 179,400 may be eligible for reduced child care costs. Compared to this time last year, tuition assistance enrollment has increased by over 2,500 children – 1,300 of those are children in child care.
This is having a huge impact on families. Those with children under five who’ve newly qualified are now saving hundreds, if not thousands of dollars every month – like Teigue Linch, who is now saving $2,000 monthly after qualifying for child care assistance for her twin girls.
Elaina Vitale is saving $1,500 monthly in child care costs, while the Harris family’s child care costs are now a third of what they were paying before accessing child care tuition assistance. This allows families to afford child care, enter or re-enter the workforce, and increase their spending power and economic opportunities.
Act 76 is Increasing Child Care Access
Since Act 76 has passed, child care programs are stabilizing, allowing them to open and expand. Public investment in child care created 1,000 new child care spaces statewide and 229 new early childhood educator (ECE) positions.
The direct investments in programs are helping them to update facilities and refresh curriculum as well as create more child care spaces and increase compensation for ECEs. Ninety new programs have opened since Act 76 passed, easing the child care crisis in many communities across Vermont. Public investment in child care is supporting projects like Craftsbury Saplings, which was awarded $50,000 to lay the foundation for a new 7,100-square-foot building that would triple capacity, from the current 19 child care spaces to 54.
Such expansions benefit families like the Grace or Allen families. Aba and James Grace piecemealed child care options for their son until Act 76 investments created 35 new child care slots at a program in their community – stabilizing their routine, their work, and their peace of mind.
For Danielle Allen, an expanded program in her community allowed her to return to work after leaving to care for her daughter full-time for two years.
Act 76 Supports Economic Growth
When parents can access affordable child care and know that their children are safe, cared for, and receiving a quality early education, more parents can enter the workforce and advance their careers. Vermont’s businesses, which face a workforce shortage, benefit from public investment in child care.
Mamava, a Vermont company that designs and manufactures lactation spaces and employs 50 people, has championed access to quality, affordable child care.
Companies like Mamava started paying into the Child Care Contribution, which funds the child care investments, in July 2024. For Mamava, the tax is less than 0.1% of its annual revenue and they’re already seeing the impact. “Long-term public investment in our state’s child care system boosts our workforce and will grow local businesses,” said CFO Brian Wannop. “This is common sense policy that benefits all Vermonters.”
For Twincraft Skincare, which hired over 180 people in the last 18 months, child care investments have supported their recent growth.
Public Investment in Child Care Remains a Top Priority for Vermont
That’s a wrap on 2024, and we couldn’t have done it without the support of our coalition of 40,000+ Vermonters! The progress we’ve made together this year is just the beginning, and we’re ready to keep advocating for parents, early childhood educators, and Vermonters into 2025.