50+ Business Leaders to State Lawmakers: Care About Affordability? Don’t Divert Child Care Funding

On January 28, Governor Scott unveiled his FY26 state budget and it included a troubling proposal that threatens to derail critical progress in addressing our state’s child care crisis. Despite lawmakers’ promise from Act 76 to use the new payroll tax funds (the Child Care Contribution) for their express purpose — addressing Vermont’s urgent child care crisis — the Governor has proposed to divert over $20 million in child care funds to be used for completely unrelated government expenses. If lawmakers go along with his proposal, it would go back on the commitment that was made to Vermonters and jeopardize the progress we’ve made to date on child care.

Let’s be clear: Vermonters overwhelmingly support solving the child care crisis because they know it’s essential for families, businesses, and our economy. With the new funds allocated so far, we have made significant strides. Through tuition assistance expansions under Act 76, nearly 2,000 families have seen lower child care costs, easing the financial burdens that too often prevent parents from participating fully in the workforce. Over 1,000 new child care spaces have been created, allowing more Vermonters to work and providing a more reliable workforce for businesses. And, critically, compensation and benefits for early childhood educators—the backbone of this system—have gone up, helping us retain and attract the talented professionals our children deserve.

But this progress is fragile and fully solving the child care crisis will take years and continued investment from our state. Simply put, we have much more work to do. Diverting Act 76 funds away from child care—even temporarily—is a terrible approach to policy-making that threatens our progress and our economic viability. The Governor himself said we should discontinue the raid on the transportation fund to pay for General Fund spending. Why then in the same budget would he propose to raid the child care fund to pay for General Fund spending? The Administration’s proposal would set an awful precedent and move Vermont backwards at a time when we cannot afford to falter on our commitment to solving the child care crisis.

The evidence is clear: investing in child care pays dividends. Every dollar spent supports parents in the workforce, fosters children’s development so they are ready to learn when they enter school, and strengthens local economies. Reducing our investments when we’ve only just begun to see the gains is shortsighted and counterproductive, undoing the progress we’ve made and delaying the promise of a future where every Vermont family has access to affordable, high-quality child care.

We urge our state lawmakers and the Governor to do the right thing: use every dollar from Act 76 for its intended purpose – solving Vermont’s child care crisis. Together, we can hold our leaders accountable and ensure that Vermont remains a place where families can thrive, businesses can grow, and children can reach their full potential. Let’s not lose the momentum we’ve built. The future of our state depends on it.

Michele Asch, Chief People Officer, Twincraft Skincare 

Andrea E. Bacchi, Digital Marketing & Business Solutions Specialist, Think Dynamic Digital, LLC

Anne Barlow, Owner, Anne Meredith Design

John Beal, Partner, V/T Commercial

Alyssa Blask Campbell, CEO, Seed & Sew

Erin Buckwalter, Deputy Director of Engagement and Development, Northeast Organic Farming Association of Vermont (NOFA-VT)

Rebecca Cariati, Founder, Refuge Acupuncture and Somatics

Kelly Clements, President, Gordon's Window Decor

Emma Couch, Manager, The Mountain Goat

Jack Crivici-Kramer, Co-CEO, Nick & Jack Studios

Lisa M Danforth, Owner and Founder, Tonique Mobile Bar

Christine Dodson, CEO, Mamava

Adeline Druart, CEO, Lawson's Finest Liquids

Kristin Dunne, Executive Director, Mary Johnson Children's Center

Maia Eck, Co-Owner and Head of Sales & Marketing, Back Roads Food Co.

Mark Foley Jr., Owner and President, Foley Services, Inc

Byron Garcia, Founder, Natural Designs LLC

Dimitri Garder, Co-Founder, Global-Z International

Sharron Harrington, Executive Director, VTAEYC

Sam Hooper, Owner and President, Vermont Glove

Theresa Hylander, Owner, Wild Roots

Teddy Kramer, Sales Associate, Berkley & Veller Greenwood Country Realtors

Tawnya Kristen, Executive Director, Green Mountain United Way

Meghan Ksiazek, VP of ESG, Turtle Fur

Sean Lawson, Owner & Founding Brewer, Lawson’s Finest Liquids

Julie Lineberger, Owner, LineSync Architecture; President, WheelPad L3C

Christopher Miller, Global Social Mission Director, Ben & Jerry’s Homemade, Inc.

Tom Moody, Managing Partner, Moody Advisors PLLC

Ryan Munn, Founder and Chief Value Officer, Interchain LLC

Christina Nelson, Owner, Mountain View Child Care

Leslie Parker, Founder, SustainVT by LBP Consulting

Jason Parkin, President and Chief Creative Officer, Compose[d]

Amy-Louise Pfeffer, Strategic Advisor, Leading in Nested Systems

Peter Plumeau, Founding Partner, Reframe Lab

Sonja Raymond, Owner, Apple Tree Learning Center

Wendy Rice, President and CEO, Vermont Connector

Aly Richards, CEO, Let’s Grow Kids

Andy Robinson, Consultant & Trainer, Andy Robinson Consulting

Erin Roche, Vermont Director, First Children's Finance

Andrew Sambrook, Owner, First Roots Wild Roots

Michael Schafer, Commercial Business Lead, Vermont Smoke & Cure

Barbara Schindler, Co-CEO, Empowering Leadership Teams

Liz Schlegel, Executive Director, The Alchemist Foundation

Michael Seaver, Former Vermont Regional President, People’s United/M&T Bank 2009-2023

Pat Sheehan, Innkeeper, The One Cat Bed & Breakfast

Lynne Silva, Owner, The Silva Group LLC

Mary Simmons, Project Coordinator, Birdseye

Win Smith, CEO, Summit Ventures NE LLC

Dan Smith, President & CEO, Vermont Community Foundation

Anastasia Surmava, Owner, Surmava Enterprises

Tim Volk, Strategic Advisor, KSV

Roxanne Vought, Executive Director, Vermont Businesses for Social Responsibility

Lissa Weinmann, Partner, 118 Elliot

Alexandria Whitcomb, Owner, Alex Whitcomb’s Family Child Care Home

Rebecca White, Associate Director of Cooperative Identity, Hanover Co-op Food Stores

Mickey Wiles, Founder, Working Fields

Sarah Camille Wilson, Executive Director, Old Spokes Home

Monica Yannes, Director, Little School INC