Action in Congress to support child care has been stalled for years. But in Vermont, lawmakers have just approved an ambitious plan that would pour tens of millions of new dollars into the state’s starved child care system.
The bill authorizing $125 million in annual investment comes after nearly a decade of organizing. As in many states, thousands of Vermont kids lack access to any child care program, and among families that have been able to land competitive slots, average costs exceed $26,000 a year, more than 30 percent of many families’ household income.
Meanwhile, child care workers are some of the lowest paid employees in the state, earning about $15 per hour, and typically with no benefits. Given that their workers could make more money doing just about anything else, programs struggle to hire and retain staff — adding additional stress to parents who can’t rely on their child care programs to stay open.
The newly approved child care bill would expand state subsidies for families earning up to 575 percent of the federal poverty level (or $172,000 for a family of four) and families earning up to 175 percent of the poverty line (or $52,000 for a family of four) would now pay nothing out of pocket.
The new payments will mean an infusion of funds for child care, allowing providers to be reimbursed at a 35 percent higher rate than they currently are. The legislation also tasks lawmakers with studying how to create an affordable full-day pre-K system.
The investments would be paid for in part by a new payroll tax, of which employers would cover at least 75 percent. It’s not law yet — it’s headed to Republican Gov. Phil Scott’s desk, who has previously said he would reject any new taxes. His office did not return request for comment, but Democrats have a supermajority in the Vermont legislature and have made clear they would override any veto in June.
Vermont’s legislative victory comes nearly a year after the Inflation Reduction Act…
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