EARLY CHILDHOOD EDUCATION: Building on Our Child Care Progress
Vermont is in the midst of a child care transformation. Since Act 76 was passed in 2023, increased public investment has lowered child care costs for thousands of families, increased compensation for early childhood educators, and allowed new programs to open and existing programs to expand. Over the past two years, over 100 new child care programs have opened, over 1,700 new child care spaces have been created, and child care tuition assistance enrollment has increased by 63%. But families are still spending too much on child care, programs need more staff, and businesses rely on a strong workforce to succeed.
The Alliance supports Let’s Grow Kids Action Network and the Vermont Association for the Education of Young Children in their efforts to protect child care funding in the state budget; increase access and affordability for children and families; and strengthen the early childhood education workforce.
Lead Organizations: Let’s Grow Kids Action Network (LGKAN) and Vermont Association for the Education of Young Children (VTAEYC)
Data and Talking Points
- Child care tuition assistance enrollment has increased by 63% over the last two years, meaning nearly 5,000 additional children and their families have gained access to reduced child care costs
Result: Minor funding reductions
Pre-session goal: Protect child care funding in the state budget; increase access and affordability for children and families; and, strengthen the early childhood education workforce.
The Governor’s Recommended FY27 Budget proposed level funding for most child care initiatives, but did include some smaller cuts to base funding for child care eligibility specialists, child care capacity grants, and child care quality initiatives. The majority of those cuts would be offset by federal funding, except for the cut to eligibility assessments by community agencies.
These reductions were accepted by the Legislature and included in the final FY27 Budget, meaning that Act 76 investments are protected for FY27. Funding will go directly to child care programs, helping them expand and improve quality, serve more children, and better support their staff, while also helping more than 10,000 eligible Vermont families afford and access care. Advocates will be paying careful attention in future budget years to ensure that base funding for child care is not eroded.